Do USHL teams make money? Are their finances made public? I'm new to the business side of the sport.
Profits in USHL
- Thread starter heyhockeytown91
- Start date
AdmiralsFan24
Registered User
I don't think they make the information public but I doubt they make money. They provide all equipment for the players and pay coaches, trainers, sales/ticket/promotions people etc. If they do make money my guess is it's very little.
wildcat48
Registered User
It really depends on the operation.... Some organizations also include Tier III through youth learn to skate programs so in many cases its those "pay-to-play" programs that bring in a boatload of cash to subsidize the USHL operation.
kenabnrmal
Registered User
All teams provide equipment, coaches, staff, etc, junior and minor-pro alike. The big difference is they're not, in most cases, paying the players. The organizations that generate decent attendance and corporate sponsorship sales are, most likely, making pretty good profits.
Hank Chinaski
Registered User
Found a pretty in-depth article on the finances of USHL teams:
https://docs.google.com/viewer?a=v&q=cache:Yp93674joH8J:www.msusa.org/vertical/sites/%257B8F60E86D-EE41-444E-926B-0493E70B13F9%257D/uploads/Hockey_Article.PDF+&hl=en&gl=ca&pid=bl&srcid=ADGEESgiaQCLtFy8cvfyjO24C9Le1DCzPWn-Ykbcp-uiYJsEIjH8E62vWQ_rBH6_DFnUKyGQFgfQwCR6MZHnFInxEb5Q6Btwq9NidSsDw_hrST2N58QJ6q3sa30gfltSL_snVVFzeI6a&sig=AHIEtbQGXofmsckxjP6TOCKhU0WDMaFJqw
Coles notes for the OP: Typical costs are between $800K - $1.2M, well run teams should be bringing in around $1.5M of revenue. Also mentioned that nearly all USHL teams turn a yearly profit.
https://docs.google.com/viewer?a=v&q=cache:Yp93674joH8J:www.msusa.org/vertical/sites/%257B8F60E86D-EE41-444E-926B-0493E70B13F9%257D/uploads/Hockey_Article.PDF+&hl=en&gl=ca&pid=bl&srcid=ADGEESgiaQCLtFy8cvfyjO24C9Le1DCzPWn-Ykbcp-uiYJsEIjH8E62vWQ_rBH6_DFnUKyGQFgfQwCR6MZHnFInxEb5Q6Btwq9NidSsDw_hrST2N58QJ6q3sa30gfltSL_snVVFzeI6a&sig=AHIEtbQGXofmsckxjP6TOCKhU0WDMaFJqw
Coles notes for the OP: Typical costs are between $800K - $1.2M, well run teams should be bringing in around $1.5M of revenue. Also mentioned that nearly all USHL teams turn a yearly profit.
Krishna
Registered User
Minor league teams are just small businesses. And generally they have to run at or near profitability to stay afloat. A minor league team that consistently loses money isn't going to get any subsidy from the government or league. And minor league team ownership doesn't attract billionaires who can afford to lose large amounts of money. There's not a lot of glamour in owning a minor league team.
kenabnrmal
Registered User
I think you'd be surprised at the depth of the pockets of many minor-league pro-hockey owners. The most stable organizations typically have a great business model that allows the team to generate profits, but many are owned by multi, multi-millionaires, and in some cases the billionaires you mention. For some owners, the losses incurred are, as the other poster mentions, a tax write-off. Often they're huge fans who are willing to incur losses just to own a franchise. While I wouldn't call much of minor league hockey ownership "glamorous", it's not as dire as one might think. A well-designed business model, a well-managed staff, and a willing market, and you have the ingredients for a long-lasting, sustainable minor league hockey franchise.
