Last updated: Aug 15, 2023
When watching an NHL game, do you ever wonder how much an NHL team costs? One would think it doesn’t require too much, just travel costs and player salaries. However, so much more goes into running an NHL team. These facets include operating costs, revenue from home games, related businesses each team associates with, and sponsorships.
Table of Contents
- NHL TeamPurchase Price
- Costs to Own an NHL Team
- Traveling Costs
- Player Salary
- Revenue and Operating Income
- Stadium Costs
- Advertising and Related Businesses
- FAQ
NHL TeamPurchase Price
The last NHL team to be purchased was the Pittsburgh Penguins for an estimated price of $850 million.The purchasing price of an NHL depends on how successful the team is, the market they play in, and the overall value of the franchise. For example, if you were to buy the Toronto Maple Leafs, it would be a higher price than trying to buy the Arizona Coyotes. The purchasing of an NHL team is based on the team's franchise value at the time of sale, which can vary for a variety of different reasons.
Costs to Own an NHL Team
There are various costs associated with owning and operating a franchise in the National Hockey League. These include traveling costs, salary for players, stadium and venue costs, advertising, and other business expenses. Keep reading to learn about the costs and revenue of owning an NHL team.
Traveling Costs
The cost for a chartered flight can range from $1,200 to $10,000 per hour, depending on how large the aircraft is.For the most part, NHL teams are using air travel as their main mode of transportation. Specifically, they tend to use chartered air travel. This helps to get teams to the place they are competing quickly and conveniently.
Some even have their own planes.This means that an NHL hockey team with a minimum of 20 players can land in the middle of the price range of chartered flights.And if teams are traveling far for their away games, this is a large expense for the team.
Player Salary
The average salary for an NHL player is a little over $2.6 million.However, as with any sports league, that figure may increase or decrease, depending on the team’s popularity and success.The minimum a player can be paid is $650,000 per year. The average NHL team pays between $66 million and $89 million per year for player salaries.
Revenue and Operating Income
For home games, the estimated revenue NHL teams receive is between $1.5 million and $3 million.This includes parking, concessions, and merchandise. For tickets, the average attendance reported in 2020 was around 17,316 people. The tickets cost around $75 on average, allowing the team to earn a little over $1.3 million in ticket revenue for each regular-season game.
However, this all varies depending on the stadium you attend, as each one charges differently. This is in part because teams that own their stadiums can charge more for things such as parking.
Stadium Costs
Teams who own a stadium need to factor in the cost of electricity, property taxes, interest, employee salaries, and other small operating costs.Employee wages average around $100,000 to $200,000 per game, depending on how many workers are operating the event.Everything else depends on the state the team is in and if they have decided on finding cost-cutting solutions.
The estimated amount of revenue is lower for advertising, with the average being around $50,000 per advertisem*nt.However, more popular teams in the league, such as the New York Rangers, will surpass that number since they will have more advertisers and sponsors due to their increased viewership. Additionally, these more popular franchises tend to have more viewers, which results in more valuable advertising space. In 2021, sponsors provided $676 million in revenue to the NHL.
In terms of media deals, the NHL is now working with ESPN and Turner Sports. These companies have a seven-year contract with the NHL for $625 million a year.This gives them rights over broadcasted games and allows them to stream NHL games on their online platforms.
FAQ
How much does an NHL team cost?
An NHL team costs around $1 billion.The average valuation of an NHL team is $1.01 billion, and the last team to change hands was the Pittsburgh Penguins, which sold for $850 million in 2021.
Who is the most valuable NHL team?
Currently, the most valuable NHL team is the New York Rangers.The Rangers are currently worth $2.2 billion.The team is owned by Madison Square Garden Sports, which also owns and manages the New York Knicks, the Westchester Knicks, and Hartford Wolf Pack, who are the Rangers’ AHL affiliate team.
Who is the least valuable NHL team?
The least valuable NHL team is the Arizona Coyotes.They are currently worth $450 million.The Coyotes are owned by Alex Meruelo, a Cuban-American businessman and billionaire.
