business question??

Discussion in 'Philadelphia Wings Forum' started by dougm, Sep 15, 2017.

  1. dougm

    dougm Well-Known Member

    i am so glad we are getting the nll back. but explain to me why...

    1 - comcast is paying $5 million for an expansion team
    2 - why didn't comcast buy the wings from french 3 years ago for what i assume would had been less
    3 - just how sweet was the mohegan sun offer to turn down comcast
    4 - has the nll value increased that much in 3 years that it can now command $5 million, not just once but twice, from the likes of alibaba and comcast
  2. Hollywood42

    Hollywood42 Well-Known Member

    From what I gather , Comcast wanted 50% and French didn't want to give up controlling stake
    So Comcast said f it , raised the rent to where with our then crowds truly made it not feasible to stick around.

    The black wolves however must be weary,
    Massachusetts is set to open casinos in the coming years, which will rip mohegans and Foxwoods clientele down significantly. There go the people , the ticket comps etc
  3. Wings-4-Life

    Wings-4-Life Well-Known Member

    Oh no! I'm so sad this is happening to them! :(
    RockStar likes this.
  4. CrocodileLax

    CrocodileLax Member

    As for the NLL increasing in value, perhaps Sakiewicz has developed a compelling business plan. That, combined with the growth of MLS under his watch, may hint at untapped value. Sports sell and the NBA, NHL, NFL etc. are too expensive for the average fan. A sport a family can afford to watch must have some value to potential owners.
  5. chuckster

    chuckster Well-Known Member

    1. Because that was the going rate. And for a person or an organization worth billions, it's chump change. The operating costs are still relatively low and the opportunity for profit is likely pretty high.
    4. It appears so. It's $5 million because that's what at least 2 people/companies were willing to pay for it. I'm sure the NLL did its homework to accurately place a value on franchises.
  6. RockStar

    RockStar Well-Known Member

    for Comcast, it's 9+ nights of decent/acceptable revenue stream, probably even at 7k or something. it is also media content that will get a few more clicks through their site/fb/twitter etc.

    Just for turning the lights on, and staffing the concession stands, they yank in several hundred thou per night and have a captive audience to which they can flog their other sports entities at low/no cost.....very powerful advertising opportunities there!

    for Comcast, the $5M plus ~$3M annual operating cost probably breaks even right away and pays off handsomely starting a couple years from now.
  7. RockStar

    RockStar Well-Known Member

    for SD, it's a very cool toy/hobby for a very interested rich guy. If he wants it to, it will last forever as long as it is not bleeding more than a few million per year, and aggravating him too much.
  8. AmericanRockFan

    AmericanRockFan Well-Known Member

    This could, however, open the door for a NLL return to the Boston area if one of these casinos has a sizeable events center that could use a tenant to take up 9-12 dates a year.
  9. swami24

    swami24 Well-Known Member

    I expect a lot to be paired on Saturdays with Flyers games.

    The difference now, Comcast is planning to launch a streaming sports channel, and needs the cheap content.
  10. swami24

    swami24 Well-Known Member

    Over a thousand season tickets sold already...
  11. smurf666

    smurf666 Guest

    Money down, yet?

    If not, it's not exactly the same thing as a sale, just a pledge that you will buy.

    Still, this level of interest in the off season of a league whose media presence is still a joke.......that's kinda promising!
  12. Hollywood42

    Hollywood42 Well-Known Member

    50$ deposit non refundable
  13. smurf666

    smurf666 Guest

    ^That actually makes it one is pissing away $50 without a serious intent to buy one or more seats.
  14. Hollywood42

    Hollywood42 Well-Known Member

    It's a very positive early trend
    I know first hand many people who jumped ship in the mid to late 00s that will give it another shot
  15. swami24

    swami24 Well-Known Member

    It's $50 per seat.
  16. swami24

    swami24 Well-Known Member

    I was at a meeting tonight and talking with a friend. He had heard about the return and will get tickets. He had taken his son to a few games in the Wings last season here.
    Last edited: Nov 13, 2017
  17. phiwings

    phiwings Active Member

    1. Yes they are. I have to imagine that in addition to the NLL itself, they've had conversations with the Avs and Flames who both own their NLL franchises, in addition to Edmonton who wants to buy back in.

    2. French didn't want to sell the team to them because they wanted him out.

    3. He got to keep the franchise (so to speak)

    4. I giuess so.
  18. RockStar

    RockStar Well-Known Member

    To an entity like Comcast, even at the NLL's bottom, it's possibly worth $5m.

    -Operating costs are only going to be max $2.5M per year, and, they can come close to breaking even just from ticket sales with a sane 9k paid at $30 average price. Their real costs are actually lower than some teams because arena rent is just one division passing accounting numbers to another one, and, they can cover sales, promotions, HR, etc. just by hiring a handful more Flyers staffers.

    -They fill 9+ dates at WFC, and, while they are filling the dates, they sell you parking passes, beer and hotdogs at ludicrous markup, and,

    -they have something approaching 100,000 person-games worth of a captive sportsfan audience for their own partner company ads (for Flyers, for tele-media services and content, etc.). they also slightly boost the value of ads by their other key sponsors.

    After all is said and done, depending on how the business is structured and the numbers are spun, the $6m whatever initial investment to get this running, could very well kick off $1m in annual profts fairly long as the effort to build a serious contender looks like it's there.......and, as long as Nicky Saks lets the men start hitting each other again..
  19. swami24

    swami24 Well-Known Member

    Center three sections in the lower bowl will $40, front row $50.
  20. RockStar

    RockStar Well-Known Member

    I don't know if they will sell uppers, but, if you can imagine $30 ends and $20 to 25 uppers, they will easily average $30 or more per sold seat.

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