After a harsher than usual winter it is finally spring time in Toronto. The buds are showing the first signs of leaves returning to the trees in my neighbourhood. Toronto hockey fans have grown accustomed to trees being the only place to find a maple leaf at this time of year. But tonight, the Toronto Maple Leafs will play their first post-season game in nine years and Bloomberg says that this is a sign that the purchase of Maple Leafs Sports and Entertainment is beginning to pay dividends for its owners, Rogers and BCE.
Each home game generates at least C$2 million in income alone for teams such as the Maple Leafs and the Canadiens, said Bruno Delorme, a professor of sports marketing at Montrealâs McGill and Concordia universities. NHL players aren’t paid salaries during the playoffs, meaning that all ticket revenue flows to the teamsâ bottom line, said Delorme. Salaries on average account for 60 percent to 70 percent of a teamâs operating costs, he said.
âFor the owners, the playoffs translate into pure profits,â Delorme said in a telephone interview.
Of course, this doesn’t include the potential for additional revenues and strategic benefits from the delivery of the content across multiple screens. As an example, Rogers Buzz has a new post encouraging Canadians to “Stream the playoffs with Rogers Anyplace TV & CBC’s Hockey Night in Canada“.
A couple of sessions at The 2013 Canadian Telecom Summit will look at converged business models and the revolution of TV content anywhere and anyhow.
Will converged business models pay dividends? For shareholders and for the fans?