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SITUATIONAL AND COMPETITIVE ANALYSIS ASSIGNMENT!
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Nandana Kantharia
Nimeelitha Yalamanchili
Riani de Wet
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Context Statement:!
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The National Hockey League comprises of 30 professional ice hockey clubs. Of these, 7 are
located in Canada: !
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1. Toronto Maple Leafs!
2. Vancouver Canucks!
3. Montreal Canadiens!
4. Edmonton Oilers!
5. Ottawa Senators!
6. Calgary Flames!
7. Winnipeg Jets!
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The clubs are franchises, owned either by families and individuals, or by corporations. There are
two distinct aspects related to the franchises. On the one hand, there is the team and the game,
and on the other, the business side. In this analysis, we will focus on three Canadian franchises
- The Toronto Maple leafs, the Montreal Canadiens, and the Vancouver Canucks.!
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SITUATIONAL ANALYSIS:!
1. TORONTO MAPLE LEAFS!
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STRENGTHS!
• Very loyal fans!
• Highest annual revenue in NHL!
WEAKNESSES!
• Only made Stanley Cup playoffs twice in last 10
years!
• Very high media coverage!
• Last won Cup in 1967 !
• #1 NHL team valuation at $1,150m !
• Dysfunctional ownership. Bell & Rogers majority
• Strong social media presence!
• Home games are sold out!
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owners of MLSE !
• Instability at the executive and management tier.!
• High-priced tickets limit lower/middle class attendance. $97 - $1375, average $120.!
• Average fan cost $615.62*!
• Aging fan base
OPPORTUNITIES!
• Invest in improving the team!
THREATS!
• Other sport franchises !
• Enhance fans’ experience in the arena!
• NHL considering 4 new franchises, incl. possibly
• Deliver more value with tickets, for example concession vouchers!
• Provide free programming!
one in the Toronto area.!
• Changing demographics!
• Non-traditional sports!
• Find ways for fans to be heard and recognized
for their contributions and input.!
• Include more affordable tickets!
• New management team
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*Fan cost is the cost of taking a family of 2 adults and 2 children to a game. This includes 4 tickets, 4 hotdogs, 2 soft drinks, 2 beers,
2 caps, and 2 game programs. !
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2. MONTREAL CANADIENS !
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STRENGTHS!
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WEAKNESSES!
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• Successful history of winning Cups!
• Stagnation!
• Very strong fan base!
• Financial success has lead to complacency!
• Brand recognition!
• Has not advanced beyond the conference semi-
• Financial strong owners!
finals since the 1992-93 season, the last year
• One of the most profitable teams in NHL !
they captured the Cup!
• 3rd most valuable team in NHL at $775m!
• Average ticket price $99!
• Skilled workforce!
• Average fan cost $412.12*!
• Lucrative local television deal!
• Sold out every game since 2004!
• Good range of ticket prices: $27 - $275!
• Largest arena in NHL!
OPPORTUNITIES!
TREATS!
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• Invest in long term plan to improve team performance!
and on the personnel itself.!
• Improve utilization of social media!
• Find ways to appeal to new fans!
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• Montreal's excessive municipal taxes.!
• Quebec income taxes both on the organization
• Extend arena capacity!
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• The return of Quebec Nordiques as NHL franchise!
• Other sports!
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3. VANCOUVER CANUCKS
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STRENGTHS!
• Well-known team.!
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WEAKNESSES!
• Tickets are overpriced!
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• Popular, with loyal fans.!
• Expensive parking!
• strong support among young people!
• Too much traffic, not enough parking during
• Lots of media attention.!
• Usually have a good performance level each
season.!
game time, people having to walk a distance.!
• Inconvenient concession arrangements!
• The franchise seems to care more about profits,
• 4th most valuable team in NHL at $700m!
• One of the most profitable teams in NHL, at
$101m
than about the game and supporters.!
• Average fan cost $479.53*,!
• Average ticket price $90
OPPORTUNITIES!
• Win a Stanley cup!
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• Reduce parking prices!
• Increase traffic to Canucks website through contests or simply replying more to fans!
• Increase fan-base
THREATS!
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• Team’s performance could possibly lead to less
home play-off games!
• Poor team performance can cause fan
dissatisfaction, including riots.!
• The franchise can be seen as taking too much
advantage of their fans by overcharging
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COMPETITIVE ANALYSIS, from the perspective of Toronto Maple Leafs:!
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In 2014, Forbes reported the worth of these franchises as follows: (amounts are $m)!
SPORT
MARKET
STADIUM
BRAND
MAPLE LEAFS
CANUCKS
CANADIENS
0
150
300
450
600
Value Axis
All three teams boast of arenas that are regularly filled to capacity, although the Montreal Canadiens’ Bell Arena has the highest number of seats. Looking at this chart, as well as the Forbes
ranking of NHL franchises, it is clear that all the Canadian teams are economically strong, with
Toronto Maple Leafs well in the lead. !
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What is of concern to the team, is the dismal ranking it received in ESPN’s fan rankings of all
122 MLB, NBA, NFL and NHL teams. !
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RANK
TEAM
VALUE
(Wins
per $
spent)
55 Canadiens
FAN
RELATIONS
OWNERS
HIP
AFFORDA
BILITY
STADIUM
EXPERIE
NCE
PLAYERS
COACH
ING
TITLE TRACK
(Championships
won or expected
within lifetime of
current fans
65
38
21
100
39
63
65
39
112 Canucks
107
83
77
119
99
102
120
100
122 Leafs
122
117
105
122
109
120
113
121
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This reveals a picture in stark contrast with the financial outlook of the franchise. It is based on a
survey in which fans were asked to rank their home teams. Most disconcerting is that Leafs fans
don’t have any hope of seeing the Stanley Cup in Toronto. Considering that winning is the ultimate goal of a sport franchise, and that it is a business that is, at its heart, entertainment, this
survey paints a bleak picture. It is critical to consider the demographics of the supporters here.
While information for the Montreal Canadiens fans was not available, the average Canucks
supporter is male, and between 21 and 34 years old. The average Leafs supporter is 38. So
while they fill the seats, they losing out on the younger demographic. Looking at the information
we have available from the three franchises, they have a lot in common:!
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• Financially strong!
• Unsatisfactory performance on ice!
• Loyal fans, but also !
• Dissatisfied fans!
• Overpriced tickets!
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Leafs, like other Canadian hockey franchises, have become complacent in their financial prosperity, and the love Canadians traditionally have for hockey. But Canada has ever-changing
demographics. Many new Canadians have an affinity for other sports, like football (soccer),
cricket and rugby. It seems then that the greets competition does not come from traditional
competitors, but from new ones. In order to keep the loyalty of existing fans, and build a broader
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support base among younger people and new Canadians, Leafs will have to implement a number of measures:!
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1. Appeal to younger and more diverse audiences by offering a more affordable product.!
2. Devise a winning strategy for the team, that is shared with fans, and has their support.!
3. Reach out to non-traditional audiences.!
4. Use social media less as a marketing tool, and more as a means of creating a sense of
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ownership among supporters.!
CONCLUSION:!
Toronto Maple Leafs, like Montreal Canadiens and Vancouver Canucks, is financially strong and
highly profitable, with loyal fans and full arenas. But, like the other two, their biggest weakness
is their own complacency. Furthermore, while the Canadiens and the Canucks are owned by
families, the Leafs are jointly owned by two competing companies. This creates a lot of internal
instability, and frequent changes in management, management style, policies, and strategy.
Fans are growing increasingly frustrated about the rising costs associated with support for the
team, especially seen in the light of a lack of team performance. Finally, there is a growth in
competition from other sports. While the immediate future looks bright, at least from a financial
perspective, unless measures are introduced to increase fan satisfaction, the long term outlook
might be less bright.!
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