There?s not much that could convince me to become a Toronto Maple Leafs fan ? except maybe a 5% return.
A diehard Buffalo Sabres fan, I received notice from my team this month that in the event of a labour dispute in the National Hockey League I could get a refund on my purchased tickets. The players have been locked out since last week.
My beloved Sabres, who are owned by a billionaire, said if I let them hold onto my money they would pay me annual interest of 4%, which would start accruing after the games I purchased were cancelled.
Much to my chagrin, the Leafs are offering an even better rate to their season ticket holders.
?Leafs season ticket holders have an option: They can choose to be refunded monthly, should games be cancelled, and receive 1% interest, or they can leave their money on account where they will earn 5% interest,? said Pat Park, director of media relations with the team.
Across the NHL, it seems fans are being presented with this magical investment opportunity ? to get a return on their funds that any pension fund manager would be happy to accept.
The Vancouver Canucks are offering up to 3%. Likewise for the Winnipeg Jets, Calgary Flames and Montreal Canadiens. The Edmonton Oilers might be checking out hockey rinks in Seattle for a new location but for now their fans will be getting a 4% return on their money.
But nothing beats the cash being handed out south of the border where reports have circulated that have both the Florida Panthers and Minnesota Wild offering a meaty 10% return for fans if they let their cash ride with the team.
The money on file, with the accumulated interest, is eventually used to pay for future tickets ? assuming they play hockey again.
We hope it?s a short lockout so we don?t spend our time and energy refunding a game here and a game there
So why are the teams offering a rate of return I can?t possibly get on a guaranteed income certificate? For the most part it seems to be goodwill but also the hassle of returning all that money.
?We have had tremendous fan support since the start of our franchise,? said Aaron Sickman, a spokesman for the Minnesota Wild. ?They?ve been coming back to us in droves and we want to encourage our fans to keep their money with us. We hope it?s a short lockout so we don?t spend our time and energy refunding a game here and a game there.?
Marc Ganis, a sports consultant and president of Chicago-based SportsCorp Ltd., laughs when I tell I?m thinking of getting Wild season?s tickets and betting on a prolonged strike. ?That?s pretty impressive,? he says, about the 10% rate, adding the risk is probably minimal because he can?t remember the last time ticket holders lost their money because of a bankrupt franchise.
Mr. Ganis says the administration cost of refunding tickets is one reason why teams will pay interest to keep fans but he said the high rate might be seen as positive indicator the delay may be short. ?By doing this, it?s not a lot of money and it looks good on them,? he says. ?For this type of interest, I?d let the money roll.?
Certified financial planner Ted Rechtshaffen says it probably makes sense to leave your money with the team, if you know you are coming back to hockey when the labour dispute is over. ?The bottom line is do you want your money or do you know you are going to buying the tickets anyway, then it?s gravy,? says Mr. Rechtshaffen.
Of course, all of this is based on the premise that the underlying tickets were a worthwhile investment to begin with. ?If I was advising someone, I?d say 10% interest is great but then you turn that money into $150 hockey tickets which may or may not be the best investment,? he says. ?It?s only 10% on money that is 100% committed to buying hockey tickets.?
Maybe it?s time to just forget about buying hockey tickets. That might be the best investment I ever make.
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