It's weird to divide the revenue by fans as if 6.3 million people can attend the games in a season. It's not even possible if every game a different fan went to and every single seat was sold out. That's even excluding season tickets, because those would be returning fans.
It's just that the wealthier fans are willing to spend more money to watch the Leafs. The population helps for sure, but the 'average' Toronto fan is actually priced out of Toronto home games and maybe goes to one every few years or travels to Ottawa or Buffalo for cheaper tickets.
The point is simply that the average Joe fan in smaller markets is already contributing a lot out of their pocket. And it's silly to think that, population aside, fans from a larger market would contribute any more if only the wealthy and corporations didn't buy up all the tickets.
There is nothing in the water that makes smaller fans less supportive than larger markets. If anything, the lack of wealthy and corporate dollars means they have to be more supportive.
Ottawa would have broken even many years if it were not for the cost of servicing the debt. EM bought the team for 130 mil, but it was really more like 430 mil because he assumed the existing debt. in excess of 300 mil from the original stadium build. So basically, it was 100 mil down and 300 on credit. (this may have been restructured in the sale but it would always have been significant) The debt cost a lot to service each year and the team couldn't cover the operating costs and all of the debt servicing. So EM had to pump 10 mil or so every year to cover the difference.
The last decade because of revenue growth from Local TV and central revenues has resulted in the team consistently generating an operating profit aside from debt. At the same time, EM stopped covering the difference and just let the debt. grow (I think details of the current sale mentioned it was at 450 mil).
Long story short, no small market can turn so much of a profit that it can pay off a 300 mil debt. is this a market factor, or an ownership issue? Seriously.
Ottawa was generating similar revenues to Edmonton before EM turned the market against the team and Edmonton build their new stadium. Edmonton has grown a bit faster and has a slightly higher income, but there is no reason to believe that Ottawa could not perform proportionally in terms of revenue once the stadium is built downtown.
Note: Interesting that in Edmonton's case fans were on the hook to pay a 3rd of the stadium. (As opposed to Ottawa fans that were basically on the hook to pay for all of the stadium).
Again. If markets like Ottawa are too small to have a team then a good 3rd of the league is to small and there are not 10+ better markets to move the to. The league is not contracting. So the longer-term solution if that many teams are not making a profit is likely increased central revenues...which is exactly what has been happening, and many of these teams are doing much better.
In fact, one of the smaller markets just sold for almost 1 bil.
