The National Hockey League reached new heights in 2023-24, setting record highs for league revenue and attendance. But they are far behind the other three major North American sports leagues: the NFL, MLB, and NBA. How different leagues generate revenue can reveal why.
Here's a breakdown of how the NHL brings in revenue compared to other leagues, where it's succeeding, and where it still has a ways to go.
Reliance on Ticket Sales and Game Day Purchases
After this year's Super Bowl, Sportico released a breakdown of the league's different revenue streams. While the NHL wasn't the only league with a large portion of its revenue coming from ticket sales, it stood out just how important it was compared to other leagues.
A total of 44% of NHL revenue comes from ticket sales. The difference in how much each league brings in at the gates is not that different except for MLS (Major League Soccer).
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 account for more than 40% of revenue. Even minor MLS ticket sales accounted for 39% of revenue. NHL teams also retain the highest share of ticket revenue compared to other sports leagues.
NHL teams also pocket 65% of postseason revenue, which is much higher than other leagues. Based on other sources of income, they need a higher percentage to make money.
Related: ESPN's NHL Coverage Is Far from What Was Promised
The NHL also has the second highest share of revenue from other game day-related expenses, such as parking passes and concessions (12%). Combine that with ticket sales and 56% of the league's revenue is dependent on people coming out to the stadium to play the game.
Large National Income Deficit
Okay, before we go any further, what exactly is a country's currency? Also called average revenue or shared revenue by Sportico, national revenue is any revenue from deals made with the league as opposed to the teams themselves.
The NFL is about national income with two-thirds of its revenue coming from that stream. They are also ahead of all other people in this category, generating more than 12 billion dollars in national income. This national income is greater than the income of the other leagues individually. The NBA has also started making money nationally with nearly $5 billion in revenue – 41% of the league's total revenue.
Meanwhile, the NHL's national revenue hasn't even reached $1.5 billion.
Along with MLB and MLS, they still rely heavily on local broadcast revenue such as local TV deals and team sponsorships. Only radio and preseason games are local to the NFL.
Contrary to the fate of the RSN (regional sports network), it is unlikely that the NHL will see much development in that area. They had to cut a deal with Diamond Sports Group to ensure broadcasts would not be affected through the 2023-24 season (NHL, Diamond Sports Group reaches deal to continue home broadcasts through 2023-24, AthleticDecember 20, 2023).
The NHL is preparing itself to find other sources of revenue for the league. For example, they signed a deal to stream Monday night games on Amazon Prime in Canada as early as a few months back.
The conclusion
The NHL generates high revenues and for good reason. Hockey has grown in popularity in the United States and almost every team shows a healthy draw in the games as a result.
They make money, but nowhere near the money of their counterparts in other sports. As long as more than half of the revenue generated by the league comes from fans in the stadiums, other leagues will follow.
For those wondering why NHL stars can do so little compared to athletes in other sports, here is your answer. But the growth of sports in recent years may lead to more production from other sources. As long as the league doesn't hold back, which it has been guilty of doing in the past, the big money will come at the right time.
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