Quote:
Originally Posted by h0twired
Are the prices you quotes in USD or CAD currencies?
$56 may be for an average ticket. However those average prices also are based on the fact that the lower bowl tickets START at around $100 CAD and go as high as $250 CAD. Are there enough Winnipeggers willing to buy 5000+ sets of seasons tickets at $100-250/ticket? Also in those scenarios it is unlikely that the cheapest nosebleed tickets will be never be less than $35. Is that still affordable enough for families?
The Buffalo Sabres and NJ Devils also have pretty big arenas. The Devils play in the Prudential Center (17,600 seats) and the Sabres play in the HSBC Center (18,250 seats). Are the average ticket sales figures due to regular sell-out crowds? So for them to get 15,000 people in the arena means that they could still have 2000-3000 empty seats per game at $56/ticket.
What happens to revenue if Winnipeg is unable to have constant sell-out crowds? What if the MTS Centre is only seeing 13,500 people per game? An ownership group would most likely have to take that into account when pricing seats. It may drive your average price up to $70 just to ensure the team breaks even if they team plays as well as a team like Phoenix does now.
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My mistake, they are in CAD. Although in the last year the CAD has ranged from 0.8 to 1.1 USD. Today it opened at 0.85 and is predicted to rise to 0.9 by the end of the year. That being said one would have to add 10-15% (on average) to above prices. That would make things less viable. However, I think your number are too high.
As far as ticket prices: The upper bowl at MTS is 6203 seats and the lower bowl is 8812 (includes boxes). Total 15015 seats.
Here are 3 scenarios given in CAD and USD (using CAD exchange of 0.85):
Number show revenue per game for lower, upper, and total seating.
Scenario 1 (assuming the $100 - 250 range for lower bowl as you have noted above)
Lower bowl average ticket $150: 1321800 CAD 1123530 USD
Upper bowl average ticket $50: 440600 CAD 374510 USD
Total 1762400 CAD 1498040 USD (average ticket $117 CAD $99 USD)
Scenario 2
Lower bowl average ticket $75: 660900 CAD 561765 USD
Upper bowl average ticket $35: 217105 CAD 184539 USD
Total 878005 CAD 746304 USD (average ticket $58.50 CAD $49.70 USD)
Scenario 3
Lower bowl average ticket $60: 528720 CAD 449412 USD
Upper bowl average ticket $25: 155000 CAD 131750 USD
Total 683720 CAD 581162 USD (average ticket 45.50 CAD $38.70 USD)
The first scenario would give Winnipeg $200000 more than Calgary and $400000 more than Edmonton per game revenue. Edmonton average ticket price 2008 was $62 CAD. So the 100-250 ticket range for the lower bowl is way too high. I think Scenario 2 is more realistic.
As far as attendance for the Sabres and NJ, the Sabers averaged 18,531 in 2009 (100% capacity) and NJ 15,790 in 2009 (89% capacity).
The MTS is 0.85% the size of NJ arena. I think Winnipeg fans would pay 15% more for a ticket than a NJ fan.
The Jets average 13000 from the mid 80's till the second last season (the last season when everyone knew the Jets were leaving was 11000). The economy in Winnipeg has improved, and the population has increased. Thus, I don't see any reason why a new NHL team should not be able to draw 15000 per game in a much better rink, where you can actually see the whole ice surface from every seat!