The threat to SHL clubs – rising salaries

The SHL clubs' economy deteriorated last season. The clubs' salary costs increased by 21 percent and if it continues, 6 out of 14 clubs may have difficulty meeting the requirements for an elite license next year.

» Published: September 20 2024

The threat to SHL clubs – rising salaries
Photo: Fredrik Sandberg/TT

The consulting and auditing firm Ernst & Young (EY) has released the report "How is Swedish elite hockey doing?" for the ninth year in a row.

The answer is not so good economically, according to EY's findings.

Despite the SHL setting a new attendance record for the second year in a row, EY's review shows that revenue from ticket sales is being eaten up by increased salary costs in the clubs.

Salary costs increased by 21 percent last season, and 11 out of 14 clubs reported a negative operating result (net sales minus total costs).

"If the clubs cannot find new revenue streams or increase existing ones, they should review their salary costs. It is not economically sustainable for salary costs to increase without revenue also increasing," says Carlos Esterling, according to a press release.

SM-finalist Rögle had the highest salary costs last season, at 133.9 million kronor.

Malmö Redhawks had the lowest salary costs, at 68.1 million kronor.

This season, the requirement for an elite license from the Swedish Ice Hockey Association was for clubs to show an equity ratio of 8 percent of their turnover.

Next season, the requirement will be increased to 10 percent, and EY writes that four clubs, Malmö, Timrå, Örebro, and Linköping, do not currently meet this requirement.

If cost increases continue, two more clubs will be at risk.

Corrected: An earlier version incorrectly stated the number of clubs at risk of not being granted an elite license. The correct number is two more.

Tags

TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Tai Woffinden's Family Faces Uncertainty
1 MIN READ

Tai Woffinden's Family Faces Uncertainty After Speedway Crash

Ovechkin's Hat-Trick Puts Him Three
2 MIN READ

Ovechkin's Hat-Trick Puts Him Three Goals Shy of Gretzky's Record

Wayne Gretzky Faces Criticism Over
3 MIN READ

Wayne Gretzky Faces Criticism Over Silence on Canada-US Tensions

Disruptions Mar Örebro Soccer Match
1 MIN READ

Disruptions Mar Örebro Soccer Match as Bottle Thrown on Field

AIK Struggles in Semifinal Opener
1 MIN READ

AIK Struggles in Semifinal Opener with Ineffective Power Play

Elanga's Stunning Goal Secures Nottingham's
1 MIN READ

Elanga's Stunning Goal Secures Nottingham's Win Over Man United

Gabriel Faces Injury Setback as
1 MIN READ

Gabriel Faces Injury Setback as Saka Returns for Arsenal's Champions League Clash

Norway's Top Soccer League Ensures
1 MIN READ

Norway's Top Soccer League Ensures Contract Extensions for Pregnant Players

Premier League to Debut Semi-Automated
1 MIN READ

Premier League to Debut Semi-Automated Offside Tech Next Week

NBA Brawl Leads to Suspension
1 MIN READ

NBA Brawl Leads to Suspension of Five Players After Detroit-Minnesota Game

Häcken's Leo Väisänen Out for
1 MIN READ

Häcken's Leo Väisänen Out for Season After Debut Injury

Jennifer Falk Faces Goalkeeping Challenge
3 MIN READ

Jennifer Falk Faces Goalkeeping Challenge as Sweden Prepares for Euro 2024

Norwegian Skiers Cleared to Train
2 MIN READ

Norwegian Skiers Cleared to Train as Leaders' Bans Continue

Färjestad Coach Departs After Playoff
2 MIN READ

Färjestad Coach Departs After Playoff Exit; Club Legend Jönsson Set to Return

Haaland Expected to Return in
1 MIN READ

Haaland Expected to Return in 5-7 Weeks After Foot Injury

Experts Propose Global Sports Body
2 MIN READ

Experts Propose Global Sports Body to Tackle Corruption and Crime

Tennis Star Daria Kasatkina Leaves
1 MIN READ

Tennis Star Daria Kasatkina Leaves Russia to Compete for Australia

Gustavsson's Stunning Save Can't Prevent
1 MIN READ

Gustavsson's Stunning Save Can't Prevent Minnesota's Second Loss to New Jersey

Sweden's Curling Team Secures Third
1 MIN READ

Sweden's Curling Team Secures Third Straight Win at World Championship

Trump's Tariff Threats Stir Anxiety
2 MIN READ

Trump's Tariff Threats Stir Anxiety in Hockey Equipment Industry

Swedish NBA Rookie Pelle Larsson
1 MIN READ

Swedish NBA Rookie Pelle Larsson Shines in Miami's Victory Over Washington

Haaland Sidelined Indefinitely with Foot
1 MIN READ

Haaland Sidelined Indefinitely with Foot Injury, City Hopes for Season Return

Södertälje Takes Lead in Heated
2 MIN READ

Södertälje Takes Lead in Heated Semifinal Against Djurgården

17-Year-Old Ivar Stenberg Propels Frölunda
3 MIN READ

17-Year-Old Ivar Stenberg Propels Frölunda to Semifinals

Celina's Late Header Secures AIK
2 MIN READ

Celina's Late Header Secures AIK Victory at Gamla Ullevi

Swedish Referees Selected for European
1 MIN READ

Swedish Referees Selected for European Championship Duty

Malmö FF Fans Face Charges
1 MIN READ

Malmö FF Fans Face Charges for Nazi Salutes During Match

AI Tool Shields Ski Stars
2 MIN READ

AI Tool Shields Ski Stars from Online Hate with Zero Tolerance

Tai Woffinden Sedated After Surgery
1 MIN READ

Tai Woffinden Sedated After Surgery Following Polish Speedway Crash

Halmstad BK Condemns Fans' Taunts
2 MIN READ

Halmstad BK Condemns Fans' Taunts as Billionaire Withdraws Sponsorship

Bukayo Saka Returns to Boost
2 MIN READ

Bukayo Saka Returns to Boost Arsenal Ahead of Fulham Clash

Sweden Eyes NBA Star Pelle
3 MIN READ

Sweden Eyes NBA Star Pelle Larsson for European Basketball Championship

Tearful Gjert Ingebrigtsen Denies Abuse
3 MIN READ

Tearful Gjert Ingebrigtsen Denies Abuse Allegations in Court

Kempe Scores Twice as Kings
1 MIN READ

Kempe Scores Twice as Kings Set New Home Win Record

Ovetjkin Nears Gretzky's NHL Goal
1 MIN READ

Ovetjkin Nears Gretzky's NHL Goal Record with Latest Score

Niklas Edin's Team Bounces Back
1 MIN READ

Niklas Edin's Team Bounces Back with Two Wins at World Championship

Teenager Jakub Mensik Defeats Djokovic
1 MIN READ

Teenager Jakub Mensik Defeats Djokovic to Claim Miami ATP Title

Min Woo Lee Claims First
1 MIN READ

Min Woo Lee Claims First PGA Tour Victory as Svensson Stumbles

Speedway Champion Tai Woffinden Hospitalized
1 MIN READ

Speedway Champion Tai Woffinden Hospitalized After Serious Crash

Haaland Injured in City's FA
1 MIN READ

Haaland Injured in City's FA Cup Win Over Bournemouth