Sabres Finances Improving; Jersey Ads May Make A Debut in the Playoffs

[Brawndo]

Per the Sports Business Journal, the Sabres have made a dramatic turnaround not only on the ice but in business side of the franchise. 
 

This team can perform from a revenue perspective in the top half of the league, which I think is saying a lot considering we’re one of the smallest markets. That’s where we’re trending right now,” said Pete Guelli, Sabres and Buffalo Bills president of business operations. The median revenue for NHL teams is in the mid-$200 million range, excluding playoffs.

They have added 4000 new full season ticket holders. They plan to cap the amount of ticket holders at 13,000 and start a waiting list. 
 

Sponsorships are expected to make a huge increase

 

Sabres leadership also expects a sponsorship windfall, with Guelli forecasting a 30% revenue increase and around 10 new sponsors in place by the start of next season. Bills sponsors typically have the opportunity to extend their sponsorship to include the Sabres before the NHL team offers the rights to other brands in a given category.

The Sabres have struggled in recent years to command significant value in major categories and secure long-term commitments, prompting Guelli to change the team’s approach in anticipation of an eventual turnaround.

“I said, ‘Let’s just do shorter-term deals. And when we start to show people how the building is operating and how the team is operating, then we’ll go back out,’” Guelli said. “It’s put us in this real advantageous position when we’re out for renewals, because obviously the leverage has changed drastically.”

 

Advertising on the Jerseys is coming 

 

The top priority is securing the Sabres’ first jersey patch sponsors, something Chief Commercial Officer Jake Vernon has been focused on since joining the organization a year ago. The team could add at least one jersey sponsor — for either its home or road jerseys — during the current playoffs, and expects to have both in place by the start of next season.

Vernon said the Sabres also are looking to fill or optimize key categories this offseason, such as spirits and automotive. The newfound on-ice success has expanded their pool of prospective sponsors.

“The thing that the success has done for us now is we’re able to expand our reach into more of a national, and potentially even a global, opportunity,” Vernon said.

 

Finally a 400 million dollar renovation of Key Bank Center is planned 

 

 

[#freejame]

How to taunt the hockey gods 101

[Weave]

Huh.  Winning improves revenue?  Whoda thunk it?

[LGR4GM]

1 hour ago, #freejame said:

How to taunt the hockey gods 101

Everyone is going jersey adds. It's not just Buffalo.

[#freejame]

29 minutes ago, LGR4GM said:

Everyone is going jersey adds. It's not just Buffalo.

You don’t make changes to your jersey mid playoffs. 

[Porous Five Hole]

That’s a shame. And here I thought keeping the jersey free of ads was intentional. 

[Taro T]

2 minutes ago, Porous Five Hole said:

That’s a shame. And here I thought keeping the jersey free of ads was intentional. 

No, not at all.  They couldn't find anyone willing to pay the ask on it.  

That's also why at least 1 year when everybody else was getting sponsors put on their helmets the Sabres had Sabres logos on theirs.

And then when they finally did get a helmet sponsor they were only put on 1 set of helmets.  The other still used the Sabres logo instead.

[transient]

5 minutes ago, #freejame said:

You don’t make changes to your jersey mid playoffs. 

Maybe they just put them on the home jerseys, then. 

[Dude]

First jersey ad?  Jersey Mike's.

[shrader]

I’d love to see numbers behind the jersey ads. The one that is probably the most expensive in the entire league is “milk”. That one always cracks me up. 

Edited May 2 by shrader

[Taro T]

3 minutes ago, Dude said:

First jersey ad?  Jersey Mike's.

Only works if they outbid that staffing company with their logos on the helmets and make those Helmet Mike's to go along with the Jersey Mike's.  😉 

[RochesterExpat]

2 hours ago, Weave said:

Huh.  Winning improves revenue?  Whoda thunk it?

I’m sure there’s an MBA out there with a case study ready to tell you that losing is more profitable because you can increase margin by cutting staff and paying players less.

[transient]

1 hour ago, shrader said:

I’d love to see numbers behind the hersey ads. The one that is probably the most expensive in the entire league is “milk”. That one always cracks me up. 

IDK, the money you get from the support of the heathens is probably offset by revenue lost by alienating the religious folk…

[Jorcus]

1 hour ago, shrader said:

I’d love to see numbers behind the jersey ads. The one that is probably the most expensive in the entire league is “milk”. That one always cracks me up. 

It goes well with Oreo's 🍪

[DarthEbriate]

49 minutes ago, RochesterExpat said:

I’m sure there’s an MBA out there with a case study ready to tell you that losing is more profitable because you can increase margin by cutting staff and paying players less.

The Pittsburgh Pirates approach: just pocket the revenue sharing for a couple decades. Or the Minnesota Twins approach: gut an up-and-coming team because you don't have a lucrative TV contract, and then delay the team sale because you're still in debt.

 

What's a better way to fund a hockey team... dig a well or ice a good hockey roster?

[Fansince70]

I'll get flamed for this, but...Buffalo Wild Wings. 

[Brawndo]

1 hour ago, shrader said:

I’d love to see numbers behind the jersey ads. The one that is probably the most expensive in the entire league is “milk”. That one always cracks me up. 

They almost had a deal north of a million per season worked out for this year. 

[JohnC]

3 hours ago, Brawndo said:

Per the Sports Business Journal, the Sabres have made a dramatic turnaround not only on the ice but in business side of the franchise. 
 

This team can perform from a revenue perspective in the top half of the league, which I think is saying a lot considering we’re one of the smallest markets. That’s where we’re trending right now,” said Pete Guelli, Sabres and Buffalo Bills president of business operations. The median revenue for NHL teams is in the mid-$200 million range, excluding playoffs.

They have added 4000 new full season ticket holders. They plan to cap the amount of ticket holders at 13,000 and start a waiting list. 
 

Sponsorships are expected to make a huge increase

 

Sabres leadership also expects a sponsorship windfall, with Guelli forecasting a 30% revenue increase and around 10 new sponsors in place by the start of next season. Bills sponsors typically have the opportunity to extend their sponsorship to include the Sabres before the NHL team offers the rights to other brands in a given category.

The Sabres have struggled in recent years to command significant value in major categories and secure long-term commitments, prompting Guelli to change the team’s approach in anticipation of an eventual turnaround.

“I said, ‘Let’s just do shorter-term deals. And when we start to show people how the building is operating and how the team is operating, then we’ll go back out,’” Guelli said. “It’s put us in this real advantageous position when we’re out for renewals, because obviously the leverage has changed drastically.”

 

Advertising on the Jerseys is coming 

 

The top priority is securing the Sabres’ first jersey patch sponsors, something Chief Commercial Officer Jake Vernon has been focused on since joining the organization a year ago. The team could add at least one jersey sponsor — for either its home or road jerseys — during the current playoffs, and expects to have both in place by the start of next season.

Vernon said the Sabres also are looking to fill or optimize key categories this offseason, such as spirits and automotive. The newfound on-ice success has expanded their pool of prospective sponsors.

“The thing that the success has done for us now is we’re able to expand our reach into more of a national, and potentially even a global, opportunity,” Vernon said.

 

Finally a 400 million dollar renovation of Key Bank Center is planned 

 

 

From a "hockey market" standpoint, I disagree with the categorization that Buffalo is a small market town. If you include southern Ontario, and the east, west and south areas of Buffalo, I consider the Sabres to be a medium plus market. And it is not inconceivable that the Sabres have the ability to encroach into the expensive Toronto market because the ticket prices are not only more available but also much cheaper than tickets are than in Toronto. 

What has suppressed this market is the inept manner that this franchise has been run for a long time. I don't care what pro sport you are dealing with, when you have a losing and irrelevant franchise for a generation in the sport, your market/fandom will be severely diminished. Prior to the playoffs, the Sabres sold out for nearly 20 consecutive games because the team was winning and was a factor in the league. 

[Pimlach]

I despise Jersey ads. 

Please no.   

[Taro T]

21 minutes ago, Pimlach said:

I despise Jersey ads. 

Please no.   

Likewise.

But, sadly, much like Thanos, they are inevitable.

[PASabreFan]

3 minutes ago, Taro T said:

Likewise.

But, sadly, much like Thanos, they are inevitable.

Agreed. But not now. It's just weird timing.

[SabresfaninSB]

36 minutes ago, Pimlach said:

I despise Jersey ads. 

Please no.   

Come on now they’re not so bad.
 

[tom webster]

While winning has obviously helped, Guelli has done a phenomenal job. No one ever thought they’d be in the top half of the league in revenue. That plus the added Arena revenues have set things up nicely.

[PASabreFan]

3 minutes ago, tom webster said:

While winning has obviously helped, Guelli has done a phenomenal job. No one ever thought they’d be in the top half of the league in revenue. That plus the added Arena revenues have set things up nicely.

I'll repeat what Pete said... paraphrase... I went to Terry and said, we have to end this drought.

Save us, Guelli! And maybe he did.

[sodbuster]

3 hours ago, shrader said:

I’d love to see numbers behind the jersey ads. The one that is probably the most expensive in the entire league is “milk”. That one always cracks me up. 

Well, it worked. Before our first game against the Leafs in 2022, I had never heard of milk.