Several hundred people packed the concourse of the sportsplex last Wednesday evening (May 24) for an emergency town hall meeting after the league threatened to sideline the franchise for the upcoming season, concerned they may not be able to operate
Several hundred people packed the concourse of the sportsplex last Wednesday evening (May 24) for an emergency town hall meeting after the league threatened to sideline the franchise for the upcoming season, concerned they may not be able to operate financially.
Coach Dana Lattery and interim president Rebecca Henderson spent the evening clarifying information about the team -- from the amount of debt and the cost of operations, to dispelling local myths.
- the town does not own or operate the team
- no municipal taxes go toward team expenses
- the team is currently operated by volunteers, with the exception of a paid head coach and a paid business operations manager
- the franchise is a not-for-profit association, as required by the league
- the team is currently operated by the Olds Sportsman Association
- the AJHL assessed the team at $695,000 five years ago
- the AJHL is allowing the team to be valued at the cost of its debt
It costs about $600,000 to run the team each year. Top five expenses:
- $150,000 – Salaries
- $62,000 – Travel
- $55,000 – Billeting (billets get $350 per month per player)
- $50,000 – Equipment
- $50,000 – Administration
Other notable expenses include a $45,000 league fee and $35,000 in ice bills owed to the town.
According to Henderson, the team has accumulated some $300,000 in debt, and is currently paying close to $25,000 in interest each year. The biggest debts are owed to:
- $120,000 – ice bill owed to the Town Olds
- $40,000 – loan with Mountain View credit union
- $15,000 – credit card debt
- Remainder – owed to suppliers
Lattery estimated the team's operations benefit the community economically to the tune of $700,000 each year. The concession also raises about $40,000 each year for Olds Minor Hockey.
Henderson said the franchise's revenue is generally split three ways: sponsorship, game night operations and fundraising. The top sources of revenue this season were:
- $200,000 sponsorship (rink boards, team sponsors)
- $120,000 hockey operations (camp, tournaments and registration fees)
- $100,000 game night operations (tickets sales)
- $60,000 game night raffles
