njdevsfn95 Posted July 7, 2007 Share Posted July 7, 2007 Yes, I am well aware that we are losing about 1500 seats by moving from CAA to the Prudential Center. However, we are experiencing quite an increase in ticket prices on the whole. Personally I'm experiencing a 25% decrease in my prices! http://www.forbes.com/lists/2006/31/biz_06...ils_313149.html Obviously this does not include this year, which is undoubtedly another money-losing season for the Devils due in part to low attendance and having to pay $3.5M to Mogilny and $2.2M to McGillis. During the spring I created this spreadsheet which I don't consider incredibly accurate, but just something to go on. For all its inaccuracies, there are 6500 lower level seats and 3500 seats at $35 or less, which are numbers I got from watching various videos and reading the papers. Oh, and I valued the Suites at $100,000 a pop, which is way off. Pretty much double them and add about $8M to the total (pushes it to $63M or so). That's not bad. With the amount of money coming in from the various amenities (bars), naming rights, and other revenue that the Devils will earn a % of, it seems like we can push a nice big profit this year. We haven't posted a profit since the 2000-01 season. Quote Link to comment Share on other sites More sharing options...
devilsfan26 Posted July 7, 2007 Share Posted July 7, 2007 I don't understand. If the Devils have been operating at a loss for the past six years, why didn't they lower ticket prices or something? Also, there is a ton of expenses and revenue streams you didn't mention, such as employees' salaries, rent payments at the CAA, merchandise, TV deals, etc. Quote Link to comment Share on other sites More sharing options...
stevestevens Posted July 7, 2007 Share Posted July 7, 2007 It dosent matter if we are losing 1500 seats by moving. We never sold out except maybe a few games and a few more in the playoffs. I think they can post a profit in 07-08 Quote Link to comment Share on other sites More sharing options...
RowdyFan42 Posted July 7, 2007 Share Posted July 7, 2007 I don't understand. If the Devils have been operating at a loss for the past six years, why didn't they lower ticket prices or something? Because there's no guarantee that doing so would have resulted in enough of a surge in attendance to make up for the decreased ticket revenue. Quote Link to comment Share on other sites More sharing options...
HellOnICE Posted July 7, 2007 Share Posted July 7, 2007 Who knows...because we don't know their overhead at all. Quote Link to comment Share on other sites More sharing options...
Don Posted July 7, 2007 Share Posted July 7, 2007 (edited) FYI - Forbes has no access whatsoever to the teams financial records. I think one of the biggest differences this year will be money made from concessions. I mean, when I used to go to the Sens games, I'd pay $30 for the cheap seats and then $12 on pizza, beaver tail and a pop. The Sens got a good cut of that money, the Devils didn't at CAA. Edited July 7, 2007 by Don Quote Link to comment Share on other sites More sharing options...
stevestevens Posted July 7, 2007 Share Posted July 7, 2007 FYI - Forbes has no access whatsoever to the teams financial records. I think one of the biggest differences this year will be money made from concessions. I mean, when I used to go to the Sens games, I'd pay $30 for the cheap seats and then $12 on pizza, beaver tail and a pop. The Sens got a good cut of that money, the Devils didn't at CAA. Quote Link to comment Share on other sites More sharing options...
section 110 Posted July 8, 2007 Share Posted July 8, 2007 We will never truly know how much money the team will make (or lose) especially with the Newark arrangement. And there's no requirement that the Vanderbeek disclose his financials to the public. I'll bet dollars to pucks that he's going to make substantially more money in both the short term and long term based on more revenue streams accruing to him. There are so many moving parts of the organization now that the team is in Newark and the accounting for the various entities will never be shown to the general public (lest we find out how much of a deal he really got from Sharpe James). For instance, the arena is developed by an entity that is separate from the team and the entity that operates the arena is separate from the team (Devils Renaissance Development LLC and Devils Arena Entertainment LLC respectively). To illustrate, Devils Arena Entertainment receives the payments from Prudential for the arena naming rights. That revenue is separate from the hockey operations. Devils Arena Entertainment also receives revenue from concessions and the non-hockey activities that occur at the arena such as concerts and basketball. Paying mortgage interest is much more advantageous than the rent he was paying to the NJSEA as anyone that owns a house knows. I could go on, but the important point here is that Vanderbeek has put himself in a fantastic position to make lots and lots of money, regardless of the level of the team's ticket sales, salaries, and other hockey related expenses. So, it really doesn't matter if the team is profitable - so long as the combined entities show a profit and the value of the holding company increases. I am highly confident that regardless of what happens, our ticket prices will not go down. Quote Link to comment Share on other sites More sharing options...
Devs4LIFE Posted July 8, 2007 Share Posted July 8, 2007 I think we are gonna see a higher attendance rate then we did at CAA, not because there are less seats but because lets face it driving out to the meadowlands kinda of sucked ass, now we can take the train to the games, much easier. Quote Link to comment Share on other sites More sharing options...
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