NHL 2006/2007 SEASON THREAD

[Nefercheperur]

Nashville Predators Eigentuemer Craig Leipold hat heute folgendes Statement zu den Season Ticket Holdern bekannt gegeben, und damit offiziell bestaetigt das er die Nashville Predators an Jim Balsillie verkaufen wird.

Dear Predators' Season Ticket Holders:

June 25, 2007 will mark the 10-year anniversary of the awarding of the NHL franchise to Nashville that became your Nashville Predators. It's been an incredible 10-year journey for me. I can't tell you enough how much I appreciate your strong emotional and financial support of the Nashville Predators. You are a big part of the team's on-ice success. On behalf of the entire franchise, I thank you.

Ten years ago, I couldn't call myself a hockey expert. Today, my family and I are as passionate and competitive about the game as the most hardcore fans.

When the franchise began, I said we would run it as a business in order to be successful. We developed a game plan both on and off the ice. We became an integral part of the community, especially downtown Nashville. We made sure we had some fun. And, we indicated that making a huge profit was not a top priority – but we certainly didn't make plans to lose a significant amount either.

As part of those plans we developed a loyal fan base – every team should be fortunate enough to have a Cell Block 303 and the loudest arena in the league. We built a team that the community could be proud of on and off the ice. We grew our hockey skills exactly as general manager David Poile outlined, using the draft as a foundation and then supplementing at the appropriate times with trades and free agents. We gave back to the community – well over $2 million in grants and in-kind donations through the Nashville Predators Foundation. We created an entertaining in-arena atmosphere for every game night. And, we did it all while keeping our ticket prices near the bottom of the league.

Unfortunately, the success on the ice has not translated to success for me as business owner.

Here are just a few facts as to why:

The Nashville Predators tallied up 216 points in the last two seasons, fifth most in the NHL, yet because of below-average attendance, the team will still have a real cash loss of $27 million during that time. Additionally, that loss is despite receiving the most money in the league from revenue sharing. Over the last five years, the team has lost over $60 million.

We've invested heavily in sales and marketing efforts, spending over $50 million in 10 years, most of that with locally-based businesses.

Our average regular season attendance this past season was 13,589, up from the year before, but still 2,000 below the NHL average. A low turnout, combined with a low ticket price results in a poor financial situation.

The new NHL Collective Bargaining Agreement with revenue sharing is not a cure-all. Each local market must still support its local team. In addition, this attendance does not qualify us for our full revenue sharing allocation under the collective bargaining agreement.

While individual fan support has always been strong, we've worked aggressively to increase our local business support since Season Four. We've tried a variety of approaches with minimal success. Our records show today that corporate support for the Nashville Predators makes up about 35% of our season ticket base. The average in other markets is around 60%. During our first two years, approximately 4,000 businesses owned season tickets. Today, only 1,800 businesses have season tickets.


While my heart and my love of the game tell me we can still be successful, the facts outlined above suggest otherwise. I've reached the only possible conclusion and it's one of the most difficult decisions of my personal and professional life.

Later today, I am announcing an agreement to sell the Nashville Predators franchise and Powers Management to Jim Balsillie. We plan for the sale to be final in early July after a short period of due diligence and approval from the NHL Board of Governors.

I've carried the franchise as far as it can go from a business standpoint. It has been well-reported that we have attempted to attract local ownership since 2002. The truth is, we had only one serious inquiry in that time from someone who was interested in a small minority share of the team. Jim Balsillie is interested in full ownership.

It's time to give someone else a chance to take the Nashville Predators to the next level in terms of local business support. Last week's announcement that the Sommet Group has signed on as a naming rights partner for the arena is a strong first step in the right direction. The new energy and leadership of Jim Balsillie will be another.

Jim Balsillie is co-CEO of Research in Motion, the company which developed the Blackberry device. He is an avid hockey fan who still plays recreationally. I know he is dedicated to putting a great team on the ice.

The past 10 years have laid a foundation, but there's still much to be done to both build corporate support and to win a Stanley Cup. I know Jim shares my passion for the game and my commitment to a strong franchise to pursue the greatest trophy in sports.

Despite the financial challenges we faced, owning this franchise has been the thrill of a lifetime. I've made many friendships here in Nashville. It's been an exciting 10 years, and as I move on from the ranks of team ownership, I'll always remain a fan.

Sincerely,

Craig L. Leipold

Weitere Infos
Die Predators haben eine Klausel im Vertrag mit dem Sommet Center in Nashville, das man das Team aus der Stadt verlegen kann, wenn der Zuschauerschnitt unter 14,000 Zuschauern liegt. Der Zuschauerschnitt liegt bei 13,589 Zuschauern pro Spiel, damit ist man 25 in der NHL, und erfuellt damit die Bedingungen in der Klausel. Noch deutlicher wird es wenn man die Zuschauerzahl der Nashville Predators nimmt, von den Zuschauern die fuer ihr Ticket bezahlen, also die “Paid Attendance“ die liegt bei unter 12,000 Zuschauern.

Jim Balsillie koennte also von dieser Option gebrauch machen. Doch sollte er das Team verlegen, muesste er nochmal $18 Millionen an die Stadt bezahlen. Die Stadt hat zudem eine Option das man das Team unterstuetzt, und die fehlenden Einnahmen aus den Ticketverkauefen auszugleichen. Auch dann muesste das Team in der Stadt bleiben. Die NHL muss zudem einer Re-Location auch zustimmen.

In der kommenden Season werden die Predators definitiv noch in Nashville spielen, man koennte fruehestens fuer 2008/2009 in eine neue Stadt ziehen. Alles in allem ist es nur noch eine Frage der Zeit bis die Predators eine neue Heimat finden, wie man an dem Statement von Leipold sieht, ist der Franchise in einem katastrophalen zustand.