By Ken Boehlke
On March 10, 2022
Directly following a horrendous loss in Buffalo, we discuss what is probably the lowest point in franchise history and what needs to change moving forward.
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et’s look at the facts and financial numbers.
Foley/company is worth slightly over ONE BILLION.
He paid NHL 500 million dollars to join (that is roughly HALF his net worth).
Now his salary (cap) commitment is 100 million (this year alone). If you can include prior five years, then do it. That only adds to the total number.
Considering he lost a TOTAL of ONE full season of lost revenue (over last two years ) due empty rinks (COVID), that is roughly another $190 million (considering 40 games lost, 18,000 seat capacity, 265 average seat price). Excludes concessions. So roughly the ownership is getting hit hard. Nearly 800 million spent.
I don’t see ownership withstanding the bleeding much longer. I don’t see any more expensive contracts thrown down the toiler. They franchise didn’t receive much in playoff revenue last year. I see large price increases in playoffs this year, if the even make the playoffs.
I see dwindling fan attendance.
Of course, this is one sided equation, only looking at the spending side. But I see decreasing revenue, and the average rise in ticket prices in last year alone is a big tell in overall scheme.
Season Location Average Ticket Price 2020-21 T-Mobile Arena $264 2019-20 T-Mobile Arena $154 2018-19 T-Mobile Arena $176 2017-18 T-Mobile Arena $117
I see Regina in the front view window, and the STRIP in rear view dashboard mirror.
Well, so many things wrong with your math and information above – Which led you down the road to an absurd conclusion.
1) There are three Estimates of Bill Foley’s net worth that I could find. They range from 1.4 Billion to 2.7 Billion.
2) Bill Foley didn’t write a check for the entire $500 million. He has minority owners who shared in the initial costs, and share in the losses if there is an on-going deficit. (The Maloof family). Additionally, Guys like Foley don’t use cash, they obtain financing in the form of Private or Bank loans.
3) One of the reasons people buy sports teams is that they tend to increase in value. SinBin reported in October that the value of the Knights $890 Million, and increase of 78% in 4-5 years. That is a good investment. Unlikely Foley wants to move to a smaller market.
4) Your use of increasing ticket prices is strange, as they support increasing revenues – AND REGARDLESS OF THE SECONDARY MARKET, PRETTY MUCH EVERY TICKET IS SOLD FOR EVERY GAME – When you see empty seats, those are people who bought, and didn’t show, or couldn’t sell their tickets. Also – I went to games in both Anaheim and Arizona this year. Both places were less than half full, and attendance included Traveling VGK fans like me. Advantage Vegas.
5) The Merchandise and Licensing income from this team has been massive. Simply walk around Summerlin Center on any busy day, and remember that the team has pocketed money on every one of those Jerseys, Jackets, Hats, T-Shirts.
6) You didn’t bother to mention TV Money from the National deal (620 million split 32 ways), as well as the local TV advertising haul.
Given all the above, I find it unlikely that the team has lost money…..especially if you count the increase in value of the team.
We are fortunate to have an ownership group, and a fan with the financial sturdiness to go up and over the Salary cap. There has been NO indication that Foley is closing the check book. If anything, he will continue to leverage his financial power to the benefit of the team.
1 . I repeatedly found estimates of slightly over 1 billion, none as high as 2, for Foley/company. And in/after the covid economy his net worth has dropped . So it’ s not looking good. 2. I said “Foley/Company” implying his partners, whether he financed it or not he’s still looking at doughnuts from his investment. 3. even at 890 million my math adds up to break even at best with all expenses over past five years 4. increasing revenues ? Not when they were shut down for nearly a whole season. Increasing ticket prices reeks of desperation by owners. 5. 620 million, if you believe that number, let’s say it’s correct; is still only about 18 million (divided 32 ways. I also left out concussions, and jersey, and hats, and pucks sales.
Either way you cut it, Foley/company is facing big losses from his original investment of 500 million and you never questioned my math coming up with the expenses. I also said I left off the playoff haul, which wasn’t much.
Look at attendance drop off from first two seasons, covid impact, and get back to me.
Poor listener. I expect better from a “God”
There has been no attendance drop. Every ticket is sold, at a much higher price than the first few seasons. Value of the franchise has almost doubled, and the national TV deal has almost doubled.
Also, the players shared in the revenue loss during the pandemic.
When we start seeing “Austerity” measures from the VGK, I will humbly come on this board and say you were right. Other than that, move on, your knowledge of sports team economics is pretty soft.
Bottom line is the first ones to get bent over are the STH’s. Not a good way to build loyalty from the regular fans.
you left out the enormous “finance charge” and that 500 million dollar entry fee.
No attendance drop ?? Who were in the seats during the covid bubble ? Casper the ghost and his friends ?
My math adds up, you never questioned the numbers I came up with nor the fact that during covid the rink was empty for nearly a full season over past two years.
first period 81 and 27 stunk bad.
81 gave the game away last night due to petulance and tonight tried to give it away from the first shift.
I could see 27 traded to Philly for Provorov
scoring chances 18-4 for Pitt
rumor has it that VGK is looking at bringing back the 1993 tandem of Barry Melrose (place)** and Tony Robbins (motivational speaker now in Hawaii).
** why hasn’t Melrose coached again ? Cozy in his TV analyst position, where is he now ? REtired.
Manny?? Manny who? toot toot toot let’s go knights toot toot toot toot let’s go knights
worst PP in hockey history. let the firing begin
@ hey dick irvin, i mean Danny Gallivan; oh my , oh my , oh my. oh my, what a loss.
did you see who they had out there on no. 1 PP unit ?
holy cow, no. 67 must have gotten injured when he got slashed. He gone.
oh my. not good , not good at all.
no depth. Next up CBJ , then jets. This road trip is turning into a season ending disaster.
Injury trend still continuing. no. 19, no. 90, no 67 NOT GOOD , NOT GOOD.
RED ALeRT MORE COTTON !
Mr fragile, 67. he might as well hang ’em up.
Total lost season. I expect Foley to clean house. no one is gonna pay to see that collection of slugs out there tonight and last night.
This team would be better suited to play at the Dollar Loan Center. AHL calibre.
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