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Sports Column: Is the CHL really a money-maker?

Some figures in a study entered as evidence in a lawsuit against the CHL don't quite add up
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A lawsuit brought against the Canadian Hockey League is back in the news this week after reports by TSN correspondent Rick Westhead.

Westhead detailed a report by Dr. Kevin Mongeon, an assistant professor of Sport Management at Brock University, that has been entered in as evidence as part of the lawsuit.

The study was requested by the lawyers representing a group of former CHL players who feel that players should be receiving more than what they already do. In this case, a salary.

Part of the study features a table that lists each Ontario Hockey League and Western Hockey League teams estimated ticket revenue.

The study does not included the Quebec Major Junior Hockey League as a law firm from Quebec is handling the case in that province.

The Hamilton Bulldogs, who averaged 3,844 fans in 34 home games during the 2015-16 season, led the OHL with an estimated ticket revenue of over $1.2 million. This is where the flaws in the study come in.

With the average of 3,844 for each of the Bulldogs 34 regular season home games (130,696 total tickets sold), multiplied by the average OHL ticket price of $19 means that the Bulldogs ticket revenue should be over $2.4 million, and that’s if each of those tickets was sold and not a comp of some sort.

The London Knights, who were second in ticket revenue at just over $1.1 million had an even bigger discrepancy. Averaging a sellout crowd of 9,013 at Budweiser Gardens, the Knights total tickets sold works out to 306,442. Again using the average OHL ticket price of $19, that leads the Knights ticket revenue to stand at $5,822,398.

Many of the OHL numbers don’t seem to add up. Consider the fact that if half of the Knights sellout crowds each night were complimentary tickets, the team would still generate almost $3 million in revenue.

Again, these numbers use the average ticket price across the league for an adult ticket but one would think that even using specific ticket prices for each team would mean the numbers in the study would be fairly close to the exact numbers.

The study implies that CHL teams across the board make extreme amounts of money and have the funds to pay players minimum wage to play.

The money teams make may not be what many people want to believe it is.

Consider this, the Kitchener Rangers financial statements are audited and presented to its season ticket holders annually.

In a July 2014 letter, Rangers COO Steve Bienkowski outlined the organizations operating costs for the 2013-14 OHL season.

A report at the time had the Rangers gross revenues listed at $6.2 million, which Bienkowski termed accurate. The money included revenue from ticket sales ($3.6 million), sponsorship/advertising/other income ($2.1 million) and licensed merchandise ($470K).

The letter then outlined the Rangers operating costs, which included player programs such as schooling, equipment, billeting, travel and player expense reimbursements, facility rentals and staffing among other expenses.

The operating costs for the season?

$6.1 million. That left the team with a surplus of just over $100,000.

To show the numbers aren’t that far off from season to season. According to the Waterloo Region Record, the team made just over $96,000 during the 2014-15 season.

Maybe CHL teams aren’t quite the money-makers some make them out to be.


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Brad Coccimiglio

About the Author: Brad Coccimiglio

A graduate of Loyalist College’s Sports Journalism program, Brad Coccimiglio’s work has appeared in The Hockey News as well as online at FoxSports.com in addition to regular freelance work with SooToday before joining the team full time.
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