Capitals Looking To Build On Breakthrough Year On, Off Ice
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Capitals Reporting Increases In Merchandise,
Tix Sales Off Of Successful '07-08 Campaign |
The Capitals' challenge during the '08-09 season is to "sustain -- and if possible, accelerate -- the franchise's newfound momentum," according to Tarik El-Bashir of the WASHINGTON POST. While on the ice that means "advancing beyond" the first round of the Stanley Cup Playoffs for the first time since '98, off the ice, "it means continuing to build the season ticket base and continuing to grow revenue, which is needed to offset a payroll that has increased by almost $17[M] in the past year." The season-ticket base "has reached almost 10,500 full season equivalents," putting the Capitals "near the league's midpoint, and about 1,000 less than the team's peak" during the '02-03 season, the second season of RW Jaromir Jagr's tenure with the club. Also, "despite an increase in the prices of some tickets -- some as much as 10[%]" -- Capitals VP/Ticket Sales Jim Van Stone said that the season-ticket renewal rate "was 93[%]." Van Stone: "The team's performance kind of gave us the catapult to do this." Meanwhile, Capitals Senior VP & CMO Tim McDermott said that merchandise sales, "encompassing online as well as in-store sales at Verizon Center and Kettler Capitals Iceplex, have jumped 151[%] over last year," and added that Web traffic "has increased 50[%] over last year." McDermott: "Every single business indicator is trending up." Capitals Owner Ted Leonsis: "If we make the playoffs, go deep in the playoffs, we'll get 90, 95[%] renewals next year. I've always felt this is a great market, but it was up to us to find the formula, the product, the style of play, the approach, to activate it. We're almost there" (WASHINGTON POST, 10/10). Leonsis: "I don't think there is any one thing you'll be able to point to if we're successful. I think it is really the amalgam of all these things. Everyone knows now -- we're spending all the money, we've got all the pieces, we've got great facilities, great fan support -- it is up to you as players, and they're so confident they can't wait" (WASHINGTON TIMES, 10/10).
SUCCESS STORY: Leonsis said of the impact of the economy on his franchise, "I'm not naive enough to think that, long term, anything that's bad for consumers isn't bad for sports franchises. But right now we can't sell enough tickets. Business is as strong as it's ever been." Leonsis believes that if the Capitals "build on the enthusiasm from last year's playoff berth and become a legitimate Stanley Cup contender," revenue "will quickly catch up to expenses." The WASHINGTON EXAMINER's Brian McNally writes that would be "heartening news for a league that needs as many stable franchises as possible as the economy sours" (DCEXAMINER.com, 10/10).
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