Question from Harvard Business School case: Marketing the National Hockey League?
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What does it mean when the NHL get its revenues from "Gate", and "Stadium"? Does the stadium a team plays in pay the team to play there? I don't know hockey, so I don't know how it works.
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Answer:
"Gate" means ticket sales/people coming in. There are also a percentage taken from food and beverages, merchandise, etc. Depending on the team and city, the franchise can rent/lease the arena (as in the case of the Coyotes), a partnership deal (I think the Habs and Bell Centre), or the franchise can own both (Leafs back when Maple Leafs Gardens was in service, and Air Canada Centre, if I'm not mistaken).
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