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SBJ/June 18 - 24, 2007/This Weeks News
Ducks shatter Cup’s per cap mark
Published June 18, 2007
In securing the Stanley Cup for Southern California, the Anaheim Ducks also brought along a record amount of retail revenue.
|The Anaheim Ducks spent millions in 2005 to
expand its concession operations.
The Ducks reported a monstrous merchandise per cap of $24.70 for the club’s series-clinching Game 5 victory at Honda Center, obliterating the Stanley Cup single-game record of $17 set in 2002 by the Detroit Red Wings at Joe Louis Arena.
Multiply the nearly $25 per cap by the 17,372 fans who paid to see the Ducks’ historic victory, and third-party concessionaire FMI generated about $430,000 in gross retail sales for Game 5.
The Ducks receive an “equitable split” of that revenue after FMI pays for the cost of goods and labor, said Tim Ryan, the team’s executive vice president and chief operating officer. Ryan declined to reveal the specifics of the deal.
The Honda Center team store has doubled in size the past two years after Broadcom co-founder Henry Samueli bought the Ducks in 2005, took arena operations in-house, and spent millions to expand and upgrade the concession operations at the facility. The investment paid off during the Ducks’ championship run.
“It seemed to get stronger every round, and in Game 5, it just took off,” Ryan said. “It was a perfect storm of the new logo and colors this year, and the first time that a Southern California team [has won the Stanley Cup]. Put all of that together and you get tremendous merchandise sales.”
The Ducks capitalized on the afterglow by selling all 2,500 of the championship “locker-room” T-shirts and hats they had ready as people left the building after Game 5, said Brian Jennings, the NHL’s executive vice president of consumer products marketing.
“It might not ever happen again, and the day after, the market is saturated and you lose that momentum,” said Alan Fey, co-owner for XP Events, another third-party merchandiser. “You have to take advantage of that one night.”
FMI also operates retail at Scotiabank Place in Ottawa, where the Senators generated merchandise per caps exceeding $10, the highest number in recent memory for Canadian-based teams competing in the finals, said Milt Arenson, FMI’s founder and president.
“The passion I witnessed in both Ottawa and Anaheim was incredible,” Arenson said. “Tickets were impossible to get, and the fans came out early and stayed late. The poor viewership on TV did not translate to poor sales in the arena.”
FMI and Anaheim Arena Management worked together to set up additional portable stands throughout Honda Center to relieve congestion at the team store and other retail locations. Four temporary stands outside the building extended FMI’s reach beyond the arena’s four walls.
Ducks fans also spent heavily on food and beverages. Aramark, the Ducks’ food provider, reported a per cap exceeding $23 for general concessions for Game 5, and food per caps were consistently above $20 for the three finals games at Honda Center, Ryan said.