# How Many NHL Teams Lose Money? Over Half the League Has Lost Money in Recent Years

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- Published: 2023-11-04
- Author: Nelson Ayers
- Categories: [Business & Worth](https://33rdsquare.com/category/games/worth/)

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In the past 5 NHL seasons, an average of 10-15 teams have reported losing money each year. With up to half the league‘s franchises in the red, it‘s clear that financial challenges remain for many teams across the NHL. Digging deeper into the numbers reveals the market forces and management decisions shaping this profitability divide.

## NHL Revenues Produce a Few Big Winners

The National Hockey League continues on an overall revenue growth trajectory, taking in over $4.5 billion last season. Media rights deals with networks like ESPN now pay each team more than $125 million annually. Yet that rising tide hasn‘t lifted all boats.

For big market, original six teams like the Toronto Maple Leafs and New York Rangers, revenue approached or exceeded $300 million last season. But many teams brought in less than $150 million annually. This revenue split is a key factor in profitability.

| Team | 2021-22 Revenue | Operating Income |
| --- | --- | --- |
| Toronto Maple Leafs | $295 million | $104 million |
| Buffalo Sabres | $148 million | $14 million |

## Player Salaries Eat Up Revenue

One major expense stands out in particular – player salaries. The NHL‘s salary cap structure mandates that players receive 50% of league "hockey-related revenue". For most teams, salaries alone eat up close to 50% of all revenue.

Add in the cost of front office staff, equipment, travel and arena expenses, and many teams spend close to their entire income just on the basics. If just a few million in losses pile up from weak ticket sales, poor arena deals or a downturn in the Canadian dollar, red ink flows quickly.

## The Bottom 10 Money Losing Teams

Based on financial estimates and reports, these NHL teams have lost the most money in recent years:

1. Arizona Coyotes
2. Ottawa Senators
3. Buffalo Sabres
4. Florida Panthers
5. Columbus Blue Jackets
6. New Jersey Devils
7. Anaheim Ducks
8. Detroit Red Wings
9. Minnesota Wild
10. Winnipeg Jets

## Common Traits of Money-Losing NHL Teams

Despite coming from a range of different markets, the biggest money-losing NHL teams share some common traits:

- Located in smaller metro areas with less corporate base
- Play in outdated arenas with less amenities and revenue
- Weaker local media deals and gate revenue
- Less capitalization to absorb losses when they occur

Without changes, consistent losses in the five to ten million range will remain the reality for these franchises.

## Act of Desperation – The Arizona Coyotes Saga

No team epitomizes NHL financial struggles quite like the Arizona Coyotes. In 2021, the Coyotes were estimated to have lost over $80 million over the previous four seasons.

The Coyotes have consistently spent to the salary cap limit without the revenue to support it. In 2021, they gave up their lease to Gila River Arena after the city of Glendale refused to continue subsidizing losses.

The Coyotes will play the next three seasons in Arizona State University‘s small 5,000 seat arena while searching for a long-term home. This saga shows the extremes that even large market owners will go to in hopes of eventually finding profitability.

## Psychological Boosts Can‘t Overcome Math

NHL commissioner Gary Bettman will often tout the strength of the NHL‘s business. Expansion to Las Vegas and Seattle brought each owner over $60 million in fees. And new gambling revenue streams offer untapped potential.

But many teams operate very close to the edge. As one NHL insider said:

> "A few million dollars lost here or there isn‘t a big deal for the Leafs or Rangers. But for small market teams, the losses can‘t be waved away as a rounding error. The math doesn‘t work."

For at least 10-12 teams, the math says profits will remain elusive without bigger changes.

## Searching for Solutions

NHL teams have tried various tactics to improve their finances with mixed results:

- **Lucrative arena deals** – Ottawa‘s new arena plan promises revenue growth, but public funding can draw backlash.
- **Aggressive marketing** – Success of the Vegas Golden Knights shows that an exciting on-ice product can drive ticket sales.
- **Keep costs down** – Small market teams like Nashville have managed to break even with conservative spending.

But there may be no silver bullet. The NHL likely faces some relocations or contractions before all teams find a path to profit.

## What Will Bring Future Profit Growth?

Despite some teams‘ struggles, the NHL‘s overall financial momentum remains positive. The keys to driving future growth:

- Huge new U.S. media deals taking effect in 2022-23 season
- Continued expansion process providing windfalls
- Legalized gambling and sports betting revenue streams
- International growth, especially in China‘s massive market

If the NHL keeps innovating, total revenue could reach $6.5 billion annually by 2030. But a bigger pie may still leave some slices too small.

Profitability for all NHL teams remains an elusive goal.

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Source: [How Many NHL Teams Lose Money? Over Half the League Has Lost Money in Recent Years](https://33rdsquare.com/how-many-nhl-teams-lose-money-over-half-the-league-has-lost-money-in-recent-years/)