Tuesday, October 18, 2016

Something on my Mind: The Big Business of Hockey

Let's face it: Hockey is big business and big business is good for any economy. There are exceptions to this rule, but they are few and far between.


Considering the role that the NHL has here in Alberta, we have ample evidence of the financial benefits of hockey Even though I take good-natured shots at the Calgary Flames franchise, I see them as a great example of the beneficial role the hockey business plays in a provincial economy.


While my loyalties will always be with the Vancouver Canucks, my greater loyalties are with all NHL-based teams when it comes to the positive business influence each team has. On that basis, I root for every NHL team.


Money, of course, was the main reason that Las Vegas was granted a franchise for the 2017-2018 season. If it was based on culture or tradition or even fan base, Saskatoon or Quebec City would have won out.


On the other hand, the franchise in Phoenix is a classic example of a business call by Commissioner Bettman that went wrong. While I think it is slowly recovering, how many millions of dollars have been wasted on that franchise over the decades? And let's not talk about Atlanta, now zero for two in missed opportunities.


The benefits of a professional (and amateur) hockey franchise in any given city is direct and immediate. Take the outside benefit: parking, accommodations, travel, and meals. Multiply that figure by how many fans attend each game, then multiply that figure by forty-one home games.


Do the math. The beneficial role is astounding!


Moving from the outside, let's look inside the rink. Consider the cost of tickets, food, and souvenirs—again, multiplied by the number of spectators, and multiplied further by the number of games per year. Granted, not all spectators blow their money on junk inside the rink (tickets, notwithstanding), but you get the sense there's a lot of money floating around.


Beyond the immediate area ,the spin-off effect is good in the general trading area, though not as good as near the core. Using Calgary as an example, Red Deer or Camrose will definitely benefit from NHL hockey to some extent.


On a personal note, I can take in a Hurricanes game for $15, and my co-fan (not a word, Maurice) picks up the tab for the fancy coffee. I'll put a few dollars in for gas, maybe grab another coffee or burger on the way home. It's a good feeling: having fun and helping the economy at the same time.


Back to hockey in the big leagues: Think of all the goods and services, the jobs, the gas and food, hotel revenue that's generated. These are provided to make the game work, and are all good for the economy.


Even something as monumental as the new arena in downtown Edmonton is a wonderful example. Yes, it's not on-going in the sense that money is always being generated on a game-by-game basis, but the building stage, and now the booking stage are huge. Drawing more people into the downtown core is very fashionable these days—and lucrative, for that matter.


Big business takes many hits these days, especially within a socialist environment that has very weak economic principles. While no one wants to water down the product on the ice, community leaders and hockey leaders need to work together to make everything, well, work together better.

The "Calgary Now" project, is great example in many ways of what I'm taking about. If nothing else, the city and the province should throw some funding towards that proposal.


When I was in Kamloops years ago, there was such serious resistance to moving the Blazers from a dumpy 2,000-seat barn to a (then) state-of-the-art arena that they now have. The shift has revitalized the downtown core. The economic benefits have been immeasurable.


There is a place in a Canadian context for hockey and business. And when they combine as Peter Maher would say, "You can put it in the win (-win) column."



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