The Tampa Bay Lightning are having a great season, but even if the team wins the Stanley Cup they’ll lose close to $30 million according to Forbes.
Citing a source familiar with the team’s finances, the Lightning will incur these loses in large part because of the NHL’s collective bargaining agreement which began with the 2005-06 season.
Despite drawing nearly 2,000 more fans per game this season, gate revenues weren’t enough to cover the additional expenses incurred as part of Tampa Bay’s playoff run.
Under the league’s CBA, playoff teams must pay the NHL a low six-figure fee to help cover costs to produce the playoffs, including expenses for travel, marketing and officiating.
As playoff teams advance the fees increase each round, meaning the more success Tampa Bay has, the less money they’re making.
In addition, teams are required to contribute part of their playoff ticket revenue to the NHL’s revenue-sharing program, which redistributes money to the financially weaker franchises.
As a result, every time the Lightning appear in a home playoff game they only net about $500,000 as opposed to the more than $1 million they would have received under the NHL’s prior CBA.
What it boils down to is this: if Tampa Bay is going to turn a profit, they’ll have to find ways to generate more revenues during the regular season.
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