Amazing what happens when you are just slightly competitive. This trend should continue if they can be around .500, slightly above, and get to a decent mid seed in conference. An extra 365 seats a game, over the course of a full season, even if you are only making $10 per seat, comes in at nearly 125k. This is the main reason why I don’t think they want to sell someone like Kyrou. They need all the money they can get. An extra 100k this year is significant and can’t be overstated for a team that hasn’t made the playoffs in 5 years and had a pandemic to deal with. If you had even 3 home playoff games, you might get another 100k since ticket prices are more expensive and no promotions or BOGO nights. Let alone if this team gets to round 2 and plays 4/5 home games. As much as I want them to sell someone like Kyrou because I think the assets are needed if they want a real run in 2 years, the money is the money. Doesn’t mean they don’t sell off on Kyrou and I’m sure they entertain offers .. but it’s a difficult conundrum and imo adds more weight to the significance of someone like Molnar showing up here. Maybe that gives you more wiggle room to sell Kyrou but remain in a similar spot in the standings. I’m just fascinated to see how they handle it
Thanks for posting this. It is certainly encouraging to see that the fans are coming back in some measure, even for so marginal a team.
I certainly understand the concern about finances. However, I think this is, to at least to some degree, a very unpleasant and understandable hangover from the Bassin years. For years on end we had to endure rumors about the team being sold or moved, and how the team was operating on a very thin shoestring.
We now know from the bankruptcy filing that Bassin was far more overextended than anyone knew. He simply did not have the financial wherewithal to own and properly operate an OHL team. With perhaps a couple exceptions, OHL teams do not generate tons of free cash flow. The value in the franchises has been primarily from their appreciation in value.
Bassin borrowed a very large amount of money to buy and operate the team, The cash flow simply was inadequate to pay the debt service on those borrowings and properly run the team at the same time. Eventually, the major creditor lost patience with Bassin's futile efforts to sell/move the team, and precipitated the bankruptcy by moving to collect on its debt.
Fortunately, the franchise ultimately sold to Jim Waters for an amount that was sufficient to pay all creditors and the costs on the bankruptcy proceeding. Everyone got paid what they were owed. But the psychological trauma of all this on Erieites, was, I think, profound. There were similar rumors about the SeaWolves for a number of years. I think we all had good reason to be a little paranoid about keeping our teams.
Jim Waters, though, is not Sherry Bassin, Waters is, by all accounts, one of the wealthiest owners in the OHL. His offer to purchase the Otters out of the bankruptcy proceeding was not contingent on any financing. I have no insight into the operational aspects of the Otters, or their profitability from a cash flow perspective. However, I am unaware of anything in how the Otters are currently being operated to suggest that there is a money issue. Nor am I aware of any rumors about the team being sold or moved since Waters took over. From what I can see, he has been an ideal owner who recently signed a long term lease with the Convention Center Authority.
I am hoping I am correct, and that a decision to move Kyrou or not move Kyrou, will be solely a hockey decision, rather than one with financial motivations.
Of course, who will be making those hockey decisions, and their track record, is an entirely different subject. If I were pressed to criticize Jim Waters, it would be his apparent tolerance for the performance of the hockey operations staff. But again, that is for another post.