The National Hockey League is set to reach new heights in 2023-24, hitting new records in league revenue and attendance. But it still lags far behind the other three major North American sports leagues: the NFL, MLB and NBA. A look at how each league makes money shows why.
Here we take a closer look at how the NHL makes money compared to other leagues, what it does well, and where it still has room for improvement.
Reliance on ticket sales and match-day purchases
After this year's Super Bowl, Sportico released a breakdown of each league's various revenue streams, and while the NHL wasn't the only league to derive the majority of its revenue from ticket sales, it stood out for how large a percentage it was compared to other leagues.
An impressive 44% of the NHL's revenue comes from ticket sales. With the exception of MLS (Major League Soccer), there is not much difference in gate revenue between the leagues.
Ticket revenue by league (in order of revenue):
- MLB: $3.3 billion
- NFL: $3.1 billion
- NHL: $3 billion
- NBA: $2.9 billion
- MLS: $800 million
However, the NHL is the only league where ticket sales make up more than 40% of revenue. Even the much smaller MLS makes up 39% of revenue from ticket sales. NHL teams also receive a much higher share of ticket revenue than any other sports league.
NHL teams get 65% of postseason revenue, which is significantly higher than other leagues, and when other revenue sources are taken into account, the NHL needs a high percentage to turn a profit.
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The NHL also derives the second-highest percentage of revenue (12%) from other associated game-day expenses, such as parking passes and concessions. When you combine this with ticket sales, 56% of the league's revenue is dependent on people turning up to arenas to watch games.
A huge shortfall in national revenue
Now, before we go any further, what exactly are national revenues? National revenues, also known as central or shared revenues at Sportico, are revenues that come through contracts with the league, rather than from the teams themselves.
The NFL is heavily focused on national revenue, which is where two-thirds of its revenue comes from. The NFL also leads the league by a large margin, bringing in over $12 billion in national revenue, more than any other league individually. The NBA is also starting to earn national revenue, with revenue approaching $5 billion, which represents 41% of the league's total revenue.
Meanwhile, the NHL's domestic revenue has yet to reach $1.5 billion.
Like MLB and MLS, the NFL still relies heavily on local revenue sources such as local television deals, team sponsorships, etc. In the NFL's case, the only local revenue is radio and preseason games.
The debacle over the fate of its RSNs makes it unlikely the NHL will see any major improvements on that front. The NHL had to strike a deal with Diamond Sports Group to ensure its broadcasts would not be affected through the 2023-24 season. Athletic(December 20, 2023)
The NHL has been looking to expand revenue streams across the league, including a deal a few months ago to stream Monday night games in Canada on Amazon Prime.
Conclusion
The NHL is raking in record revenue, and for good reason: Hockey has experienced a massive surge in popularity in the United States, with nearly every team seeing healthy attendances at their games as a result.
They're making money, but nowhere near what their peers in other sports are making, and as long as more than half the money the league makes comes from fans in the arena, they're going to lag behind the other leagues.
For those wondering why NHL stars make so little compared to players in other sports, here's the answer: But the sport's growth in recent years could eventually lead to more revenue coming from other sources, and unless the league exercises restraint (and it certainly has in the past), there will be more money to come in time.
