Last week we mentioned that the recession appears to be hitting the NBA hard, with attendance down almost across the board and the league seemingly teetering towards a full-blown crisis. It’s no surprise then that if the NBA is hurting, then the NHL must really be suffering.
The GLOBE AND MAIL reports that the Phoenix Coyotes are hemorrhaging money at a rate of $25 to $35 million a year, and could be facing a sale or - even more ominously - possible bankruptcy. Owner Jerry Moyes has already tried to sell the team back to his former partner but was rebuffed. And a statement by an NHL official is hardly the equivalent of Jim Cramer screaming “BUY! BUY! BUY!” at you:
“I don’t know how they can sustain the losses,” one former league governor said. “The team loses so much money you can’t sell it. If I were offered the team for a dollar, I’d say no because you can’t fix it.”
Some of the problems are unique to Phoenix. Their arena is in Glendale, which is basically in the middle of nowhere and miles away from the area’s big money in Scottsdale and significantly hurts them in terms of corporate suites and boxes. In addition, in order to attract fans they are offering bargain basement ticket prices (29th out of 30 clubs). All of which means plenty of fans in the cheap seats but no one in the big ticket seats up front.
(And then there’s the fact that Phoenix really isn’t a hockey town. Ask anyone in the area and they’ll tell you that they are a complete afterthought to 99 percent of all sports fans.)
But the Coyotes are also being hurt by something that has a huge impact on a lot of NHL teams: the lack of significant TV revenue. While NBA teams can survive with poor attedance for some time thanks to their share of the TV contract, the NHL doesn’t have that piece of the pie to dole out. Essentially, it’s every person for themselves, and if you are struggling there isn’t much of a lifeline to use to pull yourself out of the spiral.
Hello, contraction?
5:22 pm on December 8th, 2008
Jim Balsillie would be happy to take the team off their hands - if the NHL doesn't mind having the Hamilton Coyotes.
5:23 pm on December 8th, 2008
Hockey in Phoenix has never made any sense (money or otherwise)… especially with a franchise with such a losing streak like the Jets/Coyotes.
5:28 pm on December 8th, 2008
Should have stayed in Winnepeg. They loved them. Moving teams to new markets does not work anymore.
5:48 pm on December 8th, 2008
Frustrated Thunder Fan,
Dead on correct.
6:18 pm on December 8th, 2008
This is like the Sonics moving to Oklahoma City. Why take a franchise to a market where they have less of a chance to succeed? What idiot thought hockey would play in Phoenix???
6:19 pm on December 8th, 2008
The NHL might want to consider moving some of these southern franchises back to Canada. The Canadian dollar is just as strong if not stronger than the U.S. dollar at the moment, and you know the fans up north would support a pro franchise in their town like crazy. Quebec, Winnipeg, Saskatchewan would be much stronger markets than Phoenix, Atlanta or Carolina.
12:39 am on December 9th, 2008
Devil has the best idea…move those franchises back to Canada…the CDN $ is stronger now and some of those Canadian cities can support hockey better, financially. Moose Jaw Coyotes sounds like a better team name, anyway
5:20 am on December 9th, 2008
By coming to Phoenix, the NHL thought it could tap into the mallrat crowd, but it didn't work.
8:44 am on December 9th, 2008
Glendale isn't "basically in the middle of nowhere," genius.
9:17 am on December 9th, 2008
Hey KT,
Ever try to go to Jobing arena from the East Valley via I-10 to Glendale for a 7PM start? Jobing arena is nice but the location is retarted.
10:46 am on December 9th, 2008
Why did they use a picture of the Bank North Garden? The B's are selling out!
LMAO!
11:17 am on December 9th, 2008
Bettman is an idiot…plain and simple. Hopckey is failing in Phoenix, Florida, Atlanta, Nashville and on its way in Carolina. Don't believe the NHL's inflated attendance numbers. The teams in Quebec, Winnipeg and Hartford should never have left….BETTMAN MUST GO
12:06 pm on December 9th, 2008
Even Anchorage would outdraw Phoenix for NHL.
/just sayin'
3:21 pm on December 9th, 2008
Move them to Hartford! (Hey a man can dream)
11:39 am on December 10th, 2008
Hartford…. That market is DEAD.
12:03 pm on December 10th, 2008
Living in CT–you're probably right. But–the Whalers never should have left. In lean times (and we had lots of them), the fans still stood behind the team–and the same was true for the Canadian teams (Quebec, Winnipeg). The sunbelt just doesn't care…no history.
1:59 pm on December 11th, 2008
trust me when i tell you Glendale is in the middle of freaking nowhere. no one with a pot to piss in or an appropriate window lives within 30 miles of that s-hole. this, by the way do not bode well for the Cardinals once they start to stink up the place again, since their jiffy pop popcorn stadium is next door.
4:51 am on December 24th, 2008
Gelndale being in the "middle of nowhere"? Try ARIZONA being in the middle of nowhere. There's not much place for ANY pro sport in that state, let alone hockey.
3:51 pm on June 23rd, 2009
Bettman and his stupid pride, what a schmuck!