Oilers, EE Football Team take pandemic hit
By
Paul Cashman
in the
Business Roundup
The Edmonton Oilers will start the NHL playoffs without paying fans to boost the team's bottom line while the city's second-biggest sports franchise announced it lost $7.1 million after the CFL was sidelined in 2020 by COVID-19.
After a tough 2020 for professional sports when NHL teams lost an estimated US$720 million, the 18,500 empty seats at Rogers Place when the Oilers face the Winnipeg Jets on May 19 mean more millions of dollars in lost ticket revenue.
Ticket prices in 2017, when the team last hosted a playoff game with fans in the stands, averaged $124 for the cheapest upper bowl seats — meaning a loss of at least $2.3 million in gate receipts for each home game.
The province's ban on in-person service will cost Edmonton's restaurants, pubs, bars, and lounges the $3 million in local economic activity that Fortune magazine estimates each playoff game generates in Canada.
Also taking a financial beating from the pandemic, the EE Football Team reported revenue plunged 84% from $23.5 million in 2019 to $3.8 million last year. The team cited the loss of all ticket and concessions sales, along with sponsorships and league distributions. The Canadian Emergency Wage Subsidy brought in $2.5 million to reduce the loss.
The Edmonton Sun's Terry Jones reported the club's trust fund emerged from the cancelled season untouched at $15.3 million with almost $5 million in cash on hand.