Quote:
Originally Posted by vanatox
We're having a discussion on median income household in the Stat Canada thread.
This whole discussion on median household income here do not make a lot of sense, because their is a lot of variation in the country on household types. Cutural aspects as well. Who is more likely to attend a NHL game: a guy living alone making 70K per year or the husband in a family of 4 having an income of 110K? A senior couple with lots of savings but low income or a member from an immigrant family of 6 having a total income of 250k? Who can know that just based on household income?
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It is incredibly relevant. Increased household income (regardless of household type) and by extension, disposable income, increases the likelihood that a given person in a given market will buy a ticket to attend a game. Sports teams are businesses first and foremost - their expenses and profit goals will partially determine the optimal range to price tickets at that will result in the highest average attendance numbers. A poor market relative to existing teams in a league will not be an attractive place for a new team to pop up, especially when much of the startup costs are the same across all markets.
Of course this isn't the only factor regarding team sustainability (such as stadium conditions, team quality, ease of access to stadium, TV attendance and marketing, etc), but these are not explicitly quantitative factors that can be incorporated into a model that determines whether or not a future market is suitable. Population and household income present a good picture of how big and how rich a potential market is.
I am crunching the numbers with the new 2020 after-tax income data in my model and things are looking a lot better now for the Canadian sports landscape. One of the major challenges before was that the Canadian and American median household income data sets were out of sync (2016 CA vs 2020 US) which made the Canadian markets seem much poorer in comparison. Both Hamilton's and Quebec City's median household incomes have risen enough from the 2016 CMHC data that an NHL team could work in both locations with little to no risk. I am cleaning it up and making it more scientific (it's gotten to the point where it's more thorough and methodological than I initially thought lol), I will post it when I am done.
I am confident that people involved with the various leagues are all looking at this income data now too. Our CMAs are getting a lot more attractive from a data standpoint despite being smaller than many American MSAs.