Jersey sales

[BretterThanYou]

How much money does each team get from jersey sales? I assume it's a small percentage, but just curious. Also, if I skipped over a thread with the answer, consider this an apology.

 

[LadyStanley]

Depends on what you're asking.

Are these jerseys they sell in local store or their revenue split % of national sales (NHL Store in NYC or shop.nhl.com) or licensed retailers?

 

[Fugu]

Even so, no one knows team or NHL revenues for jersey sales. I've never seen an actual figure, though the league touts annual growth increases and lists the top ten jerseys sold.

 

[Fenway]

Even so, no one knows team or NHL revenues for jersey sales. I've never seen an actual figure, though the league touts annual growth increases and lists the top ten jerseys sold.

I am under the impression teams keep all merchandise revenue they sell at the arena and team owned pro shops and NHL.com revenue is split 30 ways. How retail is handled I do not know.

 

[Big McLargehuge]

I am under the impression teams keep all merchandise revenue they sell at the arena and team owned pro shops and NHL.com revenue is split 30 ways. How retail is handled I do not know.

To add in to that first point, part of the reason the Penguins were in such a financial hardship in the early 2000s was Howard Baldwin's lovely contract with arena managers SMG, which gave all profits from within the arena to SMG. This has been cited as the reason the Penguins passed on creating an alternate jersey in 2003-04 that had been in the works. It wasn't until 2006 or 2007 that the old SMG contract ran out and was replaced with a...less financially crippling one. From my understanding most teams keep all of the profit from arena/team-owned stores, which is why new jerseys tend to see a release at the official store before becoming available elsewhere. The Penguins ran extended hours at their team store when their new alternates went on sale, for example. They didn't do that when the 2000 alternate jersey was released (eventual pre-Edge black/home design) because the team wouldn't have profited by doing so.

Hell, the only reasons those jerseys were ever made was because of Lemieux's hatred of the robo-penguin, but that's a different story for a different thread.

 

[Fenway]

The Blackhawks just double the size of their store on Michigan Ave ( in a building owned by Wirtz ) and the Bruins are more than doubling the size of their store at TD Garden.

Jacobs also keeps the revenue of all Celtics gear sold at the arena ( and also the luxury box and club seat revenue ) and in return the Celtics pay no rent.

PROSHOP

■ Relocated to Level 2 turnstiles and part of current Bruins/Garden office space

■ New ProShop doubles retail space (from 2,800 to more than 6,000 square feet)

■ Partnership with Reebok, part of the Adidas Group, the authentic outfitter of the NHL and NBA

■ New entrance, updated look and feel, ease traffic flow and increase accessibility for fans

■ Anticipated completion Dec 2014

To add in to that first point, part of the reason the Penguins were in such a financial hardship in the early 2000s was Howard Baldwin's lovely contract with arena managers SMG, which gave all profits from within the arena to SMG. This has been cited as the reason the Penguins passed on creating an alternate jersey in 2003-04 that had been in the works. It wasn't until 2006 or 2007 that the old SMG contract ran out and was replaced with a...less financially crippling one. From my understanding most teams keep all of the profit from arena/team-owned stores, which is why new jerseys tend to see a release at the official store before becoming available elsewhere. The Penguins ran extended hours at their team store when their new alternates went on sale.

 

[kdb209]

There are two types of merchandising revenues - licensing and retail markup.

Licensing fees paid by the manufacturers or distributors for the rights to use NHL IP (team names, logos, etc) are paid to the League through NHL Enterprises, Inc and treated as Centrally Generated League Revenues and shared evenly among the teams.

The retail markup goes to whoever sells the merchandise. If you buy a jersey at an arena or other team store, the team get all or part of that revenue (depending on the contracts with their concessionaires) . If you buy it at Joe Blow's sporting goods, he gets it. If you buy it at NHL.com, its shared league revenue again.

 

[Fenway]

There are two types of merchandising revenues - licensing and retail markup.

Licensing fees paid by the manufacturers or distributors for the rights to use NHL IP (team names, logos, etc) are paid to the League through NHL Enterprises, Inc and treated as Centrally Generated League Revenues and shared evenly among the teams.

The retail markup goes to whoever sells the merchandise. If you buy a jersey at an arena or other team store, the team get that revenue. If you buy it at Joe Blow's sporting goods, he gets it. If you buy it at NHL.com, its shared league revenue again.

Say if Joe Blow's shop is in Saugus, MA, does he order from the NHL, Reebok or the team (Bruins)?

 

[kdb209]

Say if Joe Blow's shop is in Saugus, MA, does he order from the NHL, Reebok or the team (Bruins)?

They will buy it from the manufacturer or a distributor.

 

[Tommy Hawk]

There are two types of merchandising revenues - licensing and retail markup.

Licensing fees paid by the manufacturers or distributors for the rights to use NHL IP (team names, logos, etc) are paid to the League through NHL Enterprises, Inc and treated as Centrally Generated League Revenues and shared evenly among the teams.

The retail markup goes to whoever sells the merchandise. If you buy a jersey at an arena or other team store, the team get all or part of that revenue (depending on the contracts with their concessionaires) . If you buy it at Joe Blow's sporting goods, he gets it. If you buy it at NHL.com, its shared league revenue again.

They will buy it from the manufacturer or a distributor.

I imagine the NHL teams also buy from either a distributor or the manufacturer.

As an example using these are made up numbers

Reebok pays $5 per jersey for licensing
Reebok sells the jersey for $20 to distributor or other purchaser
Distributor sells to Jersey Outlet store for $50
Outlet store sell to consumer for $100
Team only receives their portion of the licensing fee.


Reebok pays $5 per jersey for licensing
Reebok sells the jersey for $20 to distributor or other purchaser
Distributor sells to Team store for $50
Team store sell to consumer for $279

Team store makes $229 less any operating costs for having the store. They aoso still receive their portion of the licensing fee.


Reebok pays $5 per jersey for licensing
Reebok sells the jersey for $20 to distributor or other purchaser
Distributor sells to Concession Stand in Arena for $50
Concession stand sell to consumer for $379

Depending on the arena management and concession stand contracts the team may or may not receive a portion of the sale made in the arena.

 

[Fenway]

Depending on the arena management and concession stand contracts the team may or may not receive a portion of the sale made in the arena.

Jeremy Jacobs must drive the NHLPA auditors batty with the way the Bruins are set up.

Jacobs and his wife own the Bruins.
The Bruins own 20% of NESN.
The Jacobs 'family' owns Delaware North.
Delaware North owns TD Garden.

In Chicago, Rocky Wirtz still says the Blackhawks are still losing money, but that is only because the Blackhawks have massive loans to pay off, mainly to Wirtz Real Estate and Wirtz Beverage.

People forget that Bill Wirtz treated the Blackhawks as a personal hobby or toy. Apparently the reason home games were not televised was that Bill promised his father Arthur on his deathbed that he would not show home games on TV.

 

[Morris Wanchuk]

Jeremy Jacobs must drive the NHLPA auditors batty with the way the Bruins are set up.

Jacobs and his wife own the Bruins.
The Bruins own 20% of NESN.
The Jacobs 'family' owns Delaware North.
Delaware North owns TD Garden.

In Chicago, Rocky Wirtz still says the Blackhawks are still losing money, but that is only because the Blackhawks have massive loans to pay off, mainly to Wirtz Real Estate and Wirtz Beverage.

People forget that Bill Wirtz treated the Blackhawks as a personal hobby or toy. Apparently the reason home games were not televised was that Bill promised his father Arthur on his deathbed that he would not show home games on TV.

I thought Jacobs, not the Bruins (Or "Boston Hockey Association" as they are called) owns NESN so that is doesn't get caught up in the Bruins valuation?

 

[Fenway]

I thought Jacobs, not the Bruins (Or "Boston Hockey Association" as they are called) owns NESN so that is doesn't get caught up in the Bruins valuation?

That would not surprise me. What is known is the Red Sox can not sell their share without Jacobs getting the chance to match any offer.

 

[LadyStanley]

Also, WRT merchandise sold in team store, there is a calculation for HRR that only counts something like 35% of revenue (to account for cost of merchandise and cost of running store).

 

[kdb209]

Also, WRT merchandise sold in team store, there is a calculation for HRR that only counts something like 35% of revenue (to account for cost of merchandise and cost of running store).

For merchandise sold (by the team or Club affiliated entity) at the arena, HRR is calculated net of Direct Costs - with those Direct Costs limited to 69% of total revenue.

For merchandise sold (by the team or Club affiliated entity) at other outlets, HRR is calculated net of Direct Costs - with no cap on the Direct Costs.

For concessions sold (by the team or Club affiliated entity) at the arena, HRR is calculated net of Direct Costs - with those Direct Costs limited to 54% of total revenue.

 

[Fugu]

Now considering that the NHL has the antitrust exemption from the government, and the arenas do not permit customers to bring in outside beverages or food, and the exorbitant prices of the food products, is there a case to be made of the lack of free competition in this industry? I don't see a way that small companies can compete with Delaware North.

I found this article about investigations of Emprise (owned by Jeremy Jacobs) in the early 1970s regarding antitrust exemption, unfair competition, and organized crime connections.

To what extent can it be said that Jacobs is unduly benefitting from the antitrust exemption today?

http://www.encyclopedia.com/doc/1G2-2841100048.html

The NHL does not have an antitrust exemption, C77.

 

[C77]

The NHL does not have an antitrust exemption, C77.

Oh sorry I had it confused with the charity status, tax-exemption.

 

[BonkTastic]

In Chicago, Rocky Wirtz still says the Blackhawks are still losing money, but that is only because the Blackhawks have massive loans to pay off, mainly to Wirtz Real Estate and Wirtz Beverage.

That is some damned fine Hollywood Accounting right there.

 

[LeafsNation75]

This wasn't a jersey but last month I purchased a Leafs t-shirt made by Reebok from shop.canada.nhl.com and long story short I'm getting it free because of some major screw ups from the NHL. Anyway the total cost was going to be $27.06 Canadian when you factor in the tax, however it was originally free shipping because of a promotion they were having at the time I purchased it. Now since they already refunded the money on my PayPal account and credit card does Reebok still need to give some revenue of the sale to the NHL or the Leafs or nothing because of what happened? I bring that up because the supervisor I spoke to one the phone said the warehouse where all NHL online store orders are shipped from are not associated with the NHL themselves.

 

[kdb209]

This wasn't a jersey but last month I purchased a Leafs t-shirt made by Reebok from shop.canada.nhl.com and long story short I'm getting it free because of some major screw ups from the NHL. Anyway the total cost was going to be $27.06 Canadian when you factor in the tax, however it was originally free shipping because of a promotion they were having at the time I purchased it. Now since they already refunded the money on my PayPal account and credit card does Reebok still need to give some revenue of the sale to the NHL or the Leafs or nothing because of what happened? I bring that up because the supervisor I spoke to one the phone said the warehouse where all NHL online store orders are shipped from are not associated with the NHL themselves.

Depending on how they do their bookkeeping, it's possible that they would even recognize the revenue from the transaction.

However, from an HRR point of view Merchandise revenues are calculated net of Direct Costs - which would include product, labor, shipping and sales costs. So, any costs associated with the return would be included in those Costs - and if the League actually loses money on the transaction, you will be personally responsible for lowering HRR and the cap.

 

[LeafsNation75]

Depending on how they do their bookkeeping, it's possible that they would even recognize the revenue from the transaction.

However, from an HRR point of view Merchandise revenues are calculated net of Direct Costs - which would include product, labor, shipping and sales costs. So, any costs associated with the return would be included in those Costs - and if the League actually loses money on the transaction, you will be personally responsible for lowering HRR and the cap.

For the record it was the supervisor from the NHL Canada online store who gave me the refund because it took 7 weeks for them to mail out my shirt which was originally purchased on October 11, 2014 and their site said it was in stock, with it supposed to be shipped in 2-7 business days.

Plus I had originally cancelled the order due to them not knowing when they would ship it and at one point my PayPal account showed a cancelled transaction from NHL Canada. So two weeks later when they send an e-mail saying the item was shipped and I was charged for it, I thought someone from there is messed up.

Also when I purchased it the NHL Canada online store was running a promotion of free shipping to Canadian customers because it was the start of the new season, so they wanted to give that promotion.

Finally the item won't be returned since I was told it was already shipped.