The Opportunity Cost of Drafting a Goalie

Why goaltenders are approaching first-round extinction

Everyone knows you need a good goalie in order to win games. But what you may not know is that many of today’s star goaltenders weren’t always the cat’s pajamas. In fact, many of them came from relative obscurity.

In the 5-year period from 1997-2001, 14 goalies were drafted in the first round. Apparently this number satisfied some type of equilibrium, because it stayed exactly the same from 2002-2006. Then suddenly things changed. In 2007, not a single goalie was taken in the first round – the first time this had occurred since 1992. Then it happened again in 2009, and again this past year. Collectively, only 4 goalies were drafted in the first round between 2007-2011. Why? Continue reading

MTS Centre and True North Sports & Entertainment

Opened November 16, 2004

Cost – $133.5M

147,000 sq. ft (300 x 490)

Capacity – 15,015

Private suites – capacity of about 1100 in *48 suites (being increased to  55)

Lower bowl – 8812 (includes suites)

Upper bowl – 6203 seats

Ticket prices

Private Suites – $180,000 per suite

 Remaining Seats – $82 average; Range: $39-$129

True North Sports & Entertainment

Hockey Operations – Already In place

Mark Chipman – Chairman True North Sports & Entertainment

Jim Ludlow – President and CEO of TNSE

Craig Heisinger – Senior VP of Hockey operations and Assistant GM (formerly Moose GM)

Kevin Cheveldayoff – General Manager and Executive VP Hockey Operations (formerly Chicago Blackhawks Assistant GM)

Potentials

Claude Noel – Moose Head Coach (Potentially head coach)

Keith McCambridge – Moose Assistant Coach

Rick St. Croix – Moose Assistant Coach

Bruce Southern – Moose Director of Player Personnel

Jim Norgate – Moose Scout

3-for-30: How the NHL’s Top-3 Teams Keep the League Afloat

A look at the key economic indicators of all 30 NHL franchises (See table at document’s end for details)

Operating Income

The total operating income in 2010-2011 for the 30 NHL franchises was $160M (SEE TABLE BELOW). However, if you remove the top 3 teams – Toronto, New York R, and Montreal – operating losses totaled 17 million. In fact, if you remove the top 8 teams, (all extremely healthy franchises), operating losses were $83 million. The root of the problem lies with the unstable franchises in the bottom 9. Of the $83 million in operating losses, they account for $76 million, or about $8 million each. Even still, it’s disconcerting that the thirteen teams in the middle of the pack lost $7 million. And these are just operating losses (You can make an operating profit and still run a loss overall). The Phoenix Coyotes are known to have lost over $30 million last year, while many estimate the Atlanta Thrashers’ loss to exceed $40 million.

Franchise Values

Collectively, the franchises are worth $166 million more than in 2009-2010, for an average increase of $5.5M per team. However, once again the top 3 heavily skew those statistics. Toronto, New York, and Montreal collectively gained $151M in value, meaning the value of the other 28 franchises increased by only $15 million.

In fact, of the 30 franchises, 14 are actually worth less in 2011 than at the end of 2010. And as with operating income, the bottom 9 franchises substantially decreased in value –  $92 million – while the middle 13 increased by a paltry $9 million. So the NHL’s economic structure mirrors the rest of society – the poor are getting poorer and the rich are getting richer. Continue reading