An expert familiar with the economy of the SM league and clubs points out the big gap between Mestis.
CEO of Jääkiekon SM-liiga oy Mikko Pulkkinen told For Hämeen Sanomhow the price of the league share is defined.
– For years, the price of a league share has been calculated as follows: The amount of equity per share shown in the league’s most recently confirmed financial statements plus the value per share of long-term contracts for the current and next period, Pulkkinen told Hämeen Sanom.
On Thursday afternoon, Iltalehti did not reach the League’s management to comment on the calculation formula in more detail, but the SM League’s equity at the end of June was 4,854,139 euros. Each league club owns one share.
CEO of Tuto, which has applied for a league license for next season Kimmo Hollmen told Iltalehte that the price of the league share for the club has been estimated at 3.6 million euros.
JYP’s financial statement for the 2022–23 season said that the TV compensation was 1.25 million in that season and 1.125 million in the previous year. The current level of TV compensation is also confirmed by the minutes of Vaasan Sport’s annual general meeting seen by Iltalehti.
However, the SM league receives more money from the TV contract than the share that comes to the clubs, because Heikki Hiltunen For Kauppalehti according to the comments given earlier, part of the TV contract money received by Liiga is used for the general investments of the series.
“Certainly the most important”
The price of the league share has spoken because Helsinki Jokerit has announced that it will not be able to aspire to the SM league in the future, if the conditions remain as they are now.
For example, the price of 3.8 million euros presented to the Jokers by the SM League is an estimate.
– It (the formula) is the Liiga’s current view of the calculation method. They have stated those terms and it remains to be seen whether they are negotiable or negotiable. The buyer probably has his own point of view, commented Janne Aalto EY on advisory services for the financial administration of Finland.
Aalto has worked every year An overview of the financial situation of league clubs on the report.
– I don’t know the details, but surely the most important thing would be that the conditions are consistent and transparent, that the method is the same for everyone.
The league management has assured that when Sport, KooKoo and Jukurie went up, the price of the league share was determined using the same calculation method.
A big gap
The qualifiers between Mestis and the SM League are returning in the spring of 2025, but before then the number of teams in the League can increase to 16. Kiekko-Espoo and Tuto have submitted a league license application.
Aalto wants to draw attention to the financial gap between the SM league and Mesti. According to a report made by EY, the total business expenses for an average team in Mestis are around one million and in Liiga around six million.
Then the operation has to be financed either with turnover or financing. Growing into a successful or major club in the League requires an estimated turnover of 10 million.
– If you want the series to be open and constantly rising and falling, there should be a financial balance so that falling is not the end of the world and rising does not mean that expenses immediately increase fivefold or tenfold, says Aalto.
According to Aalto’s view, the qualifying model is sustainable only if the gap between the first and second tier of the series is reduced.
– The income distribution gap can’t be that big then.
Jokerit announced the price of the league share to the public. Matti Matikainen