Kitchener Rangers Hockey Club Case

First, the authors provide background information about the ice-hockey industry in Canada, its overwhelming popularity, and national character. The given sphere provides about $11 billion annually (Schnarr, Krizmanich, & Lee, 2016) and attracts the attention of different agents who want to obtain significant revenues.

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Therefore, the case revolves around the peculiarities of the Canadian Hockey League (CHL) which was the largest hockey league with 52 Canadian and eight American teams (Schnarr, Krizmanich, & Lee, 2016). The great importance of this organization is evidenced by the fact that it supplies the National Hockey League with numerous players.

The authors also provide a brief description of Kitchener Rangers for a reader to know the background of the case. It was formed in1963 as a farm team for the NHL and played in Ontario Hockey League. However, a team turned out to be successful and survived.

Another aspect that is described is the teams organizational structure. It is governed by a board of directors that consists of 40 persons who are from the season-ticket holders (Schnarr, Krizmanich, & Lee, 2016). However, the bigger part of significant decisions was approved by an executive committee that consisted of nine board members.

The teams home area is the Kitchener Memorial Auditorium Complex (The Aud) which was built in 1951. However, in 2011 it was rebuilt to be able to meet the increased requirements of the team. Thus, to find the money needed for this expansion, Kitcheners borrowed $9.6 million from the city for 16 years (Schnarr, Krizmanich, & Lee, 2016).

The team also explores corporate sponsorship to find some extra revenues. Besides, the great LED-video scoreboard and ribbon boards were devoted to advertising to guarantee stable incomes and a stable level of sponsors interest.

Besides, the popularity of Kitcheners could be taken as the clubs obvious advantage that was used for marketing purposes. It was driven by community outreach. Additionally, the local media also highlighted the most significant events in the teams life.

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At the moment, Kitcheners have the second-best attendance in the OHL with about 6.992 attendees for a game (Schnarr, Krizmanich, & Lee, 2016). Moreover, every year 99 % of season tickets are sold. It means that stable revenue obtained from this source is guaranteed.

The authors also state that the club is a nonprofit organization that does not possess share capital or external owners. This fact preconditions the peculiarities of the Kitcheners evolution.

The case also highlights the financial performance of the club. It does not own the Aud and has to share 19% of incomes with its owners. Additionally, it does not obtain any income from the concessions during games, except 10% of beer sales. In 2015 the annual revenue was about $6,400,000 (Schnarr, Krizmanich, & Lee, 2016).

Finally, it is believed that there are no direct sports competitors. The only aspect that might pose a threat to the club is the entertainment business in the region.

Altogether, delving into the case, it is also vital to mention several alternatives peculiar to it. First, the club might focus on its sports performance and attain greater success which will be followed by the increased sponsors attention and acquisition of extra incomes (“Sponsorship and advertising”, n.d.). Additionally, Kitcheners could also reconsider its relations with the owners of the Aud and either redeem it or make a new agreement on more beneficial conditions (Sports Development Team, n.d.). These alternatives might help to find new sources of income and guarantee the further improvement of the clubs position.

References

Schnarr, K., Krizmanich, M., & Lee, C. (2016). The Kitchener Rangers hockey club: Skating into the future. Web.

Sponsorship and advertising. (n.d.). Web.

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Sport Development Team. (n.d.). 100+ ways to raise money for your sport club. Web.

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