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What Boston has that we dont...

Natty

By Natty
in Orioles Talk

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Machado13 Major Leaguer

Machado13

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That's not quite true. I'm not going to look up the numbers, but the NYY, BOS and SF have enormous gate receipts because their average ticket prices are so much higher than, say, the Orioles', and they sell so many season tickets to corporations and firms. Generally, the relative sizes of a team's cable TV and gate revenues are closely correlated, but not always.

Hmmm, really? I haven't looked at Forbes in a while but I thought franchises are heavily dependent on tv deals. Say the Red Sox get 4 or 5 times in tv deal vs. gate receipts. I mean let's just say they get $80m from NESN (just throwing out random number); that still trumps $20m in gate receipts. $20m seems a little high. Let's say you get 3 million in attendance $20m in tickets, beer and food seems a bit high but let's just say it is, tv deal still trumps.

This is why NHL lags behind the other sports. The tv deals are bad and so they rely on attendance more than MLB, NBA and NFL.

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BohKnowsBmore Hangout Grand Counsel

BohKnowsBmore

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Hmmm, really? I haven't looked at Forbes in a while but I thought franchises are heavily dependent on tv deals. Say the Red Sox get 4 or 5 times in tv deal vs. gate receipts. I mean let's just say they get $80m from NESN (just throwing out random number); that still trumps $20m in gate receipts. $20m seems a little high. Let's say you get 3 million in attendance $20m in tickets, beer and food seems a bit high but let's just say it is, tv deal still trumps.

This is why NHL lags behind the other sports. The tv deals are bad and so they rely on attendance more than MLB, NBA and NFL.

3mm * $20 = $60mm

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spiritof66 Hangout Grand Counsel

spiritof66

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Hmmm, really? I haven't looked at Forbes in a while but I thought franchises are heavily dependent on tv deals. Say the Red Sox get 4 or 5 times in tv deal vs. gate receipts. I mean let's just say they get $80m from NESN (just throwing out random number); that still trumps $20m in gate receipts. $20m seems a little high. Let's say you get 3 million in attendance $20m in tickets, beer and food seems a bit high but let's just say it is, tv deal still trumps.

This is why NHL lags behind the other sports. The tv deals are bad and so they rely on attendance more than MLB, NBA and NFL.

I don't know where your $20 million comes from. I think it should be $60 million, and that's right in the ballpark (literally, sort of) for the Orioles. But some teams operate on a different economic scale. Here are the 2015 gate receipts that Forbes reported in March 2016:

Yankees = $259 million

Giants = $172 million

Red Sox = $170 million

Orioles = $53 million

The gate receipts for 2013 reported by Bloomberg are close to the above figures for the three teams other than the Giants. (The Bloomberg gate receipts do not include concessions and parking; I can't find the footnotes that say whether the Forbes numbers do.)

These are revenues, before costs, and it's likely that larger crowds in NY, BOS and SF, as well as higher wages, lead to higher costs in those cities. Nonetheless, the bottom-line differences are very significant, and they are driven much more by differences in ticket prices than by differences in attendance. I am too tired right now to dig out the supporting numbers, but maybe I'll do it during a rainout this weekend.

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