According to EY’s estimate, Jokerit would increase the SM league’s turnover by as much as 15 million euros.
Jokeri’s audience numbers in Mestis have been at the league level this season as well, even though the team is only seventh in the league. Tomi Natri / AOP
- According to a recent report, only about 10 current league clubs would be able to play without subsidies in a completely market-based series.
- When looking at the financial metrics, according to the report, it is absolutely clear that the Jokers are needed in the League.
Among other things, EY (formerly Ernst & Young), which provides auditing and consulting services, has published its report on the financial situation of SM league clubs for the seventh time.
The 59-page report supports the renewal of the series system with interesting data.
The key reform for the future of Suomi-kieko was originally supposed to be decided at the general meeting of the SM League at the end of October, but a common line has reportedly not been found and the solutions will move forward.
Competitiveness
The current model has made it possible to play league hockey widely throughout Finland, but the EY project team that prepared the report raises the question, has it held back the top clubs too much in relation to the top of Europe?
The level and competitiveness would increase if the number of teams decreased from the current 16. According to the analysis, fewer teams would be able to play in the League if it were played entirely on market terms, i.e. no income would be subsidized.
If we add to this the club-specific agreements of the betting market, which will be released in 2027, we would reach a situation where the big ones are really big and they would be able to significantly close the gap to the top of Europe.
Betting
According to the estimate, betting income can bring up to 10 million euros more money per season to league hockey in the future. It is possible to use it to turn the operation profitable and to a large extent also for better players.
Betting revenues are expected to have a significant impact on restoring the League’s competitiveness in relation to other top leagues in Europe. However, they will not be evenly distributed, but the big ones will win: brand value, audience numbers, TV viewers and the amount of bet euros exchanged will determine who gets the biggest deals.
Jokers included
Based on the modelling, about 10 teams could play in an open, market-based series model, which stand firmly on their own feet.
However, considering the number of matches and interest required for business, 10 teams is too few. At the same time, according to the report, it can be said that 16 teams is too many, if the League is to be a top European league, where the big teams are allowed to be big and the competition for playing spots is fierce.
If the change cannot be made for one reason or another, according to EC’s independent report, a League of up to 17 teams with Jokerit included would be better than the current 16-team League without Jokerit.
Jokerit, who won the Mestis championship last season, was the opponent in the league qualifiers against Pelicans. The report notes that in the current system, Mestis would have to play with a fully league-eligible team and make millions of losses due to investments, and promotion through the qualifiers would still not be certain.
However, according to the analysis, it is completely clear when looking at the financial metrics that the Jokers are needed in the League. It would bring more than 15 million euros more revenue to the total pot, and the net effect even after expenses would be measured in millions of euros.
The report does not take a position on how the Jokerit could return to the League if it does not succeed through the qualifiers.
An unsustainable separation
Chairman Jyrki Seppä leads the SM league, from which decisions are expected. Harri Hepojärvi
EY does not consider the three-level 8+8+8 team system modeled in last year’s report to be likely, and the same can be said about the presented East-West model of two parallel conferences.
However, an open series system would require a model where the difference between the lower level and the tail end of the League is not unreasonably large. In a sustainable model, a rise or fall cannot mean a situation almost like bankruptcy.
Currently, the completion of the Mestis season costs close to a million euros, while in the League it costs more than 7 million even at its cheapest, and the league license should also be redeemable. The difference is unbearable.
Same umbrella
The series model of the A and B league supported by many experts has been exposed a lot in the public.
According to EY’s report, the 12-team League would consider the level tough enough even in the B-series, but the best teams in the B-level should be able to participate in the A-level playoffs through “pity players”.
This and the possibility of direct promotion would guarantee that interest would remain at the B level and that the teams would be worth investing in. In this way, according to the conclusion of the EC report, both levels would remain dynamic and would be able to function under the same umbrella.