A FEW TWEAKS

[jmt21]

Hulsizer quote : "With a few tweaks here and there, I think we can make a go of it".

This doesn't exactly reek with confidence but I've wondered.

"What tweaks could MH pull off to make the team profitable?"

My numbers may not be accurate and corrections would be appreciated.

Let's assume the deal goes thru and the Yotes average 15K next year at an average ticket price of $50.00.

15K x 50 x 41 = 30.75M ;

assume the parking lot is full every game at $15.00 each.

5,500 x 15 x 41 = 3.4M

Total : 34.1 million. add 20M for concessions, souvenir & revenue sharing.

we get 54.1 M ...... TV revenue ... 5M ??

59M total.

with an average of 75 - 80 M in revenue needed to "break even"
how can MH expect to ever break even??

what revenue streams am I missing ?

I just thought I put this out there since we're just playing the waiting game right now.

[jets2010]

corporate support?

[lsl]

There would be no parking revenue for the team, remember? The parking revenue would pay for the bonds so he can buy the team.

[bcmike]

Suites and advertising? I don't know the number on that.

[wt]

Mar 15, 2011 13:08:54 GMT -5 jets2010 said:

corporate support?

What corporate support. I have heard that most of the luxury suites sit empty and of the ones sold, belong to dentists, lawyers and doctors at greatly discounted prices. Not a lot of corporations in Glendale and greater Phoenix could not care less.

IE: the arena is in the wrong place.

[bwadlay]

What MH meant was, " If CoG can find me a few other ways to fund my losses, we can make a go of this"

[ianwpg]

Don't forget, the CoG is paying MH $17 million per year to "manage" the arena. If you add that in then it comes close to break-even given the most rosy outlook possible.

[The Unknown Poster]

It's all about making it through the first 5 years. He gets $100 million to buy the team (financing the remaining $70 or splitting it amongst other investors) plus $17 million per year.

If he has losses around $25 million -$30 million per year and the NHL makes a commitment of revenue sharing (we don't know this for a fact) and the NHL has promised increased revenue from a new TV deal (we also dont know this for a fact) minus the $17 million he gets from COG, he's looking at $8 million - $12 million per year. Revenue sharing alone would put him in the black.

Whatever losses he might endure, he's only looking to make the first 5 years. Then he renegotiates with COG and by then, they will have invested an additional $200 million and will never, ever allow him to sell the team. So if he's still losing $25 million, his arena management fees will go from $17 million per year to $25 million. Bank on it. Plus, I would not be surprised if he receives another lump sum at that point to cover whatever losses he has carried to that point.

Not one red cent will ever leave MH's pocket.