Oilers Economics: The Impact of a Playoff Run on the Local Economy

It's no secret to anyone in Edmonton, or across the Country, that the City of Champions once again has a fever that presents itself in the shade of orange.... Orange Crush that is.  Not only has it been ten long years since our NHL team has made the playoffs (or been out of the bottom rankings), but combined with the massive development taking place downtown, focused around the new Rogers Place and Ice District, this City and its businesses have been primed to capitalize on this moment.

Oilers fans, titled the "ORANGE CRUSH", cheering during a 2017 NHL Playoff Game.

It is difficult to calculate and value the fiscal impact that a Playoff run has on a City, especially our newly renovated City, however to the naked eye, it is clearly a substantial amount.  To put it into perspective though, during the Cinderella story 2006 Oilers run, the Edmonton Economic Development Corporation estimated that during the final three home games ALONE, additional economic activity of $4.8 Million was created, not including the additional benefits to surrounding bars, restaurants and hotels (Alberta Venture)!  Now factor in that the Katz Group is likely making more than that during away playoff games as they continuously sell out the 18,347 capacity hockey stadium Watch Parties (at a minimal $5/ticket towards charity).  I assure you though, the $10 beers and concession revenues are not being transferred to the Oilers Community Foundation.  Nevertheless, it has become a brilliant marketing, community-growing extravaganza that has allowed for increased Oilers camaraderie and pride, as well as for families that would not normally be able to afford the high prices of regular season to have an experience inside the new Rogers Place Arena.

Fans in Ford Hall, an expansion of the Molson Hockey House, which accommodates 1,000 people to watch the playoff games just outside of the arena playing surface.

The Katz Entertainment Group has created an ever-evolving business model with ever-growing streams of income as they begin to become masters of not only the Entertainment division (NHL/Concerts/Events), but also the Hospitality and Bar sector (Ford Hall/Molson Canadian Hockey House/Grand Villa Casino).  This will further expand as the ICE District, a large retail and hospitality square at the entrance of the arena, nears completion.

In relation to the surrounding restaurants, bars, shops and hotels, business has soared.  Sport Check in City Centre Mall has seen sales increase 1,000% each week for Oilers paraphernalia, to the point where they cannot stock enough product.  Jersey City in West Edmonton Mall has struggled with the same demands (Yahoo Sports).  Regarding restaurants and bars, on game days, fans are heading to popular establishments 3-4 hours before puck drop (sometimes more) to save tables!  A Calgary bar owner in the heart of the "Red Mile" during the 2004 Flames playoff run estimates that his business increased by 400% during the final round (Alberta Venture).  Daily revenue at popular Edmonton bars such as The Pint and Knoxville's Tavern has tripled or quadrupled during game days for this 2017 playoff run, according to management (Edmonton Journal).  Overall, local Edmonton establishments are reaping the benefits of the Oilers insanity that has taken over the City.

Whether or not we make it to the final round (we will), and beyond the revenues to the City, the energy and optimism that has enveloped everyone can only be seen to be believed.  From the Mayor of Edmonton, Don Iveson, wagering and challenging the competing teams' Mayors, to the extraordinary support from the City of Edmonton, the energy is tangible.  Some of the additional features the City has planned to keep your eyes out for are as follows:

• City Hall, the High Level Bridge and the Muttart pyramids will be lit orange.
• Banners will be hung in several city recreation centres.
• City buses will display “Go Oilers” when possible.
• City vehicles and buildings will be decked out with window decals.
• (Edmonton Sun)

So where will you be watching the next game?