The gap between the rich and the poor in the SM league is growing. Only five league clubs have more equity than short-term debt. The poor have only one straw to succeed.
Ten million euros. That’s how much the difference in turnover was between the largest and smallest joint-stock company in the Norwegian Hockey League in the 2022–23 fiscal year.
Tappara made a profit of half a million euros with a turnover of 15.1 million euros, and Jukurit a loss of 5 million euros, 372,000 euros.
When the league expands by one team in the next few years and the qualifiers return, it can be assumed that the gap between the richest and the poorest will grow.
– In this model, the big clubs will probably grow and become stronger, there will be polarization within the league. It can affect the interest of the league, admitted the chairman of the board of Jääkiekon SM-liiga Oy Heikki Hiltunen In an interview with STT.
The financial statements of league clubs show that many are in the danger zone. Only five out of fifteen companies have more equity than short-term debt (in practice, debt). The companies are Ilves, Kärpät, Tappara, HIFK and HPK.
Vaasan Sport has not submitted recent financial statements to the Patent and Registration Board, so it will be evaluated in this matter based on the financial statements for the season 2021–22.
In low oxygen
SM league clubs are more clearly divided into large and small. Mikko Lieri / AOP
In the weakest position are Sport, Jukurit, JYP, SaiPa and Pelicans.
On 30 April 2023, Jukurei had a total of 247,000 euros in equity and 3.9 million euros in short-term debt.
Said to be the crown jewel of the league, SaiPa had 546,000 euros in equity and 2.2 million in debt.
Sport’s figures a year earlier were +59,000 euros and -3.8 million.
When, due to the threat of relegation, league clubs can no longer patch up their finances with mid-season player deals, there is a realistic risk that we will see bankruptcies in the future.
– A new series system was developed for a year and the end result has the taste of haste. It would be important to make the process transparent about what the other series options were. What was the point of locking it up like that, when we are immediately telling you that it will cause difficulties, commented Iltalehti’s ice hockey expert Pekka Virta.
– Changing the entire series system to be more sporty and interesting could have been an opportunity for many people in need, the expert adds.
IL introduced a series model of 12+12 teams, which took into account athletic and financial factors.
Lynx on the rise
THE FACTS
Financial statements of league clubs 2022–23
In the statistics, after the name of the club, turnover, profit, equity and short-term debt.
1. Tappara: 15.1 million euros, +0.5, +5.6 and -4.6
2. Lynx: 14.7, +1.2, +5.8 and -2.6
3. HIFK: 10.9, +308,000 euros, +5.4 and -2.4
4. Flies: 10.7, +156,000, +7.5 and -1.4*
5. KalPa: 8.7, +420,000, +1.1 and -1.2
6. Aces: 8.6, +255,000, +655,000 and -1.3
7. TPS: 8.1, -2.9, +1.2 and -1.6
7. Lock: 8.1, +11,000, +1.3 and -4.4*
9. JYP: 7.6, +219,000, +506,000 and -2.5
10. Pelicans: 7.0, +110,000, +1.7 and -3.6
11. KooKoo: 6.0, +522,000, +2.2 and -3.3
12. HPK: 5.9, -800,000, +1.6 and -1.4
13. SaiPa: 5.1, -703,000, +546,000 and -2.2
14. Jukurs: 5.0, -372,000, +247,000 and -3.9
15. Sport: 4.2, -44,000, +59,000 and -3.8
* Lukko and Kärpät made a positive result thanks to the group grant.
** Sport’s financial statements are for the 2021–22 season
On the plus side in the previous fiscal year, 10/15 league clubs made a positive result. However, Lukko and Kärpät were able to break even with the group’s other income. Ilves collected the biggest profits: 1.2 million euros.
Loss-making business was in Turku, Mikkeli, Hämeenlinna and Lappeenranta. Sport’s loss in the 2021–22 season was 44,000 euros. The biggest loss of the last fiscal year was EUR 2.9 million for TPS. The backbone of the people of Turku are the millionaires who belong to the owners Mikko Kodisoja and Ilkka Paananen.
One of the basic ideas of business is that the business grows. The 2018–19 SM League season was the previous one that was not disrupted by the coronavirus. The turnover of five league clubs (Lukko, Kärpät, HPK, JYP and SaiPa) decreased when comparing the financial statements of the seasons 2018–19 and 2022–23.
– The idea was certainly genuine, when the companies were “promised” better finances with the closed league. The numbers show that it didn’t go that way, Virta states.
Ilves grew business the most in four years: from 6.8 million to 14.7 million euros.
A harsh everyday life
SaiPa’s financial situation is challenging. Mikko Lieri / All Over Press
Money affects everything in the daily life of a league team, says Virta, who played in the league in the seasons 1991–98 and was the head coach from 2006–23.
– Everyday life is harsh in an organization with financial challenges. Of course, it is affected by the number of players, when so much is counted on the success of an individual player. When one top center or number one goalkeeper is missing, there is no substitute and no one can afford to replace them, the expert says.
The example will be highlighted in the future, when one more club will join the league.
– There are currently not enough quality players either.
Straw for the poor
In the last fiscal year, Jukurit made losses of 372,000 euros with a turnover of 5 million euros. Matti Raivio / AOP
Skilled coaching and self-sufficiency are the keys to the sporting success of a financially modest club.
Virtra’s last training session at KalPa in 2017 ended in silver, even though the company’s financial situation was in trouble a year earlier.
– Kuopio had its own junior activities, its own identity and with a bit of luck, when you had to find gems in your own boys. When the little one fights the big one, the little one can win, as long as it doesn’t agree to play by the big one’s rules.
For example, against HIFK, KalPa got good results in Helsinki with their style of play.
– We held the puck a lot and took away from the home team’s spirit. It doesn’t work like that every time, but when you have your own tactical identity, it gives you a competitive advantage for a certain evening, Virta answers.
Long-term athletic work made Virra’s KalPa 2017 possible, Antti Pennanen for HPK 2019 and Tommi Niemelän Unexpected success for Pelicans 2023.
– You don’t start a new project every year and hire new foreigners. For example, at SaiPa we tried to secure “petmans” and “cloaks” with 2-3 year contracts. However, in a small club, it always requires that the goalkeeper and other top players succeed.
THE FACTS
The new decisions of the SM league
1. Starting from spring 2025 and from then on, there will be annual qualifiers between the team that finished last in the League and the winner of Mestis. The potential aspirant is required to fulfill the Liiga’s valid license conditions.
2. From spring 2024 onwards, Mesti’s victory in that season, in addition to winning the League qualifiers, will be added to the Liiga’s license conditions as a condition for promotion to the Liiga.
3. The number of teams in the league will be limited to a maximum of 16 from the 202526 season.
4. In the event that the club gives up its place in the series, the vacant place will not be filled.