Hockey is Canada’s national winter sport and a huge part of Canadian culture. As the birthplace of hockey, Canadians have a deep passion for the game that is unmatched anywhere else in the world. This intense love for hockey is one of the main reasons why tickets to see NHL games live in Canada can be very expensive compared to other sports and entertainment events.
High Demand
Canadians love hockey. Recent surveys show that hockey is the favorite sport of 43% of Canadians, while 60% of Canadians identified themselves as hockey fans. With a population of over 38 million, that’s a lot of hockey lovers! This high demand for hockey tickets drives up the prices. There are only so many seats available in each NHL arena, and millions of Canadian fans all want to get tickets. The law of supply and demand kicks in, and teams can charge higher prices when demand exceeds the available supply.
The demand is especially high in hockey-crazy cities like Toronto, Montreal, Vancouver, Calgary, Edmonton, and Winnipeg. These cities are home to Canadian NHL teams with huge fan bases of loyal, lifelong supporters. Fans are willing to pay top dollar to see their beloved Maple Leafs, Canadiens, Canucks, Flames, Oilers, or Jets play live.
In comparison, prices for tickets toNBA, MLB, or CFL games in Canada are much lower because the demand is just not as high. Hockey reigns supreme in Canada.
Limited Supply
Making matters worse for Canadian hockey fans’ wallets is that the supply of tickets is very limited. There are only 7 Canadian NHL teams, with arenas that hold an average of around 18,000 seats. That’s a tiny amount of tickets available for millions of fans.
The NHL also allocates over half of the tickets to season ticket holders before single game seats even go on sale. Season tickets for Canadian NHL teams often require being on a long waiting list or having deep pockets. Individual game seats are scarce.
In high-demand markets like Toronto and Montreal, tickets sell out in minutes. The short supply means buyers have to act fast and bid aggressively if they want to secure seats. This further drives up the market price for tickets.
High Salaries
In order to attract the best hockey talent in the world, NHL teams in Canada need to pay very high salaries to players. The salary cap per team in 2022/23 is US$82.5 million. That’s over $115 million Canadian dollars!
The Toronto Maple Leafs have the highest player payroll at over $106 million CAD for 2022/23. With such massive labor costs, Canadian NHL teams need more ticket revenue to cover these expenses and turn a profit.
Average NHL Player Salaries By Team for 2022/23 Season
Team | Total Salary |
---|---|
Toronto Maple Leafs | $106 million |
Edmonton Oilers | $88 million |
Vancouver Canucks | $76 million |
Montreal Canadiens | $71 million |
Winnipeg Jets | $70 million |
Calgary Flames | $67 million |
These massive payrolls lead to higher ticket prices, as a significant portion of ticket revenue goes towards paying player salaries rather than turning a profit for the franchise.
Exchange Rate
As NHL teams first and foremost earn revenues and pay expenses in US dollars, the Canada-US exchange rate also has an effect on ticket prices. When the Canadian dollar is weaker compared to the US dollar, which has often been the case over the past decade, Canadian teams need to charge more in CAD to make up for the currency differential.
For the 2022/23 season, the Canadian dollar is averaging around 75 cents to the US dollar. So if a ticket priced at $100 USD would normally convert to $130 CAD based on exchange rates alone, Canadian teams will usually bump up the CAD price even more to offset the weaker currency.
High Taxes
Taxes in Canada are quite high compared to most US-based NHL teams. Not only do people buying hockey tickets need to pay higher sales taxes on their purchase, ranging from 12% to 15% depending on the province, but NHL teams themselves have to pay higher business and payroll taxes too.
These tax expenses ultimately get passed onto customers through higher ticket prices. So Canadians end up paying much more tax on hockey tickets bought in Canada versus similar US-based NHL teams.
Opportunity Costs
In economics, opportunity cost refers to what is given up when making a choice about how to use resources. NHL teams in Canada give up the opportunity to earn other revenues when games are scheduled, as this limits the number of non-hockey events that can be hosted at their arena.
Big concerts, conventions, and other private bookings can bring in huge rental fees and concession sales for arenas. But NHL hockey games take priority in booking prime dates. Canadian NHL teams rely more on hockey ticket sales to make up for these lost opportunities for alternate revenues.
Luxury Experience
Sports franchises have been focusing more on providing an overall luxury entertainment experience in recent years. NHL hockey games in Canada now compete with other professional leagues like the NBA and NFL in catering to higher income customers.
Newer arenas like Rogers Place in Edmonton and Bell MTS Place in Winnipeg have premium seating options, luxury suites, exclusive clubs and restaurants, and enhanced amenities that come at a premium price. Teams can charge their biggest fans more for the privilege and status of exclusive luxury game experiences.
Conclusion
Hockey tickets in Canada are expensive due to basic supply and demand economics. Millions of passionate hockey fans with limited opportunities to see NHL games live drive up prices. Add in the higher costs to run Canadian franchises, from salaries to taxes, and the need for ticket revenue is even greater.
Canadians’ appetite for hockey is so strong that fans continue to pay just about whatever it costs to see their beloved national game live and cheer on their teams, whether paying hundreds for nosebleed seats or thousands to sit rinkside. It’s just the Canadian way when it comes to hockey!