Hockey is back in the "D" starting later this month, but will the businesses that are supported by revenue generated by sporting events survive? Detroit has been starved for hockey games by the NHL lockout for 113 days. Sunday, Jan 6, players and owners met for 16 hours in a New York City hotel to hammer out an agreement before their season was a total loss. According to a report from WXYZ, a tentative agreement was reached. This means there will be a shortened season, but at least hockey fans will have a season.
According to Wikipedia, a total of 625 regular-season games through January 14, 2013, were cancelled as a result of the lockout. A significant amount of income was lost to the owners, management and players while this lockout continued.
Does anyone care how much money the millionaire owners and players lost during the lockout?
The loss of income did not stop with the hockey franchises. What about the small businesses in the area around the Joe Louis Arena that rely on income from sporting events? In the city of Detroit, the loss of revenue when the hockey stadium is dark amounts to $2 million – for one game!
A quote from WXYZ reported that:
The Metro Detroit Convention and Visitors estimates every Red Wings home game results in two million dollars of economic impact for downtown Detroit.
Loss of income from a cancelled Red Wings game at JLA to a bar can amount to 25% of game day sales and up to a 50% loss for a weekend game. Local bars and restaurants could not support this revenue shortage and were forced to put their employees on part-time employment due to the lockout. Will the shortened season help their bottom line? The answer depends on how fast the games resume and if their will be end-of-season playoffs.
Additional losses of revenue were felt in Ann Arbor when the Winter Classic was cancelled. This game was scheduled for January 1 between the Detroit Red Wings and Toronto Maple Leafs at the University of Michigan’s Big House. The event was expected draw more than 100,000 fans, spending money on food, drink and souvenirs.