Home HomeSwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

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.

» Updated: 21 September 2024, 01:57

» Published: 20 September 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.

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

More news

Cantona explodes: Ferguson is my boss for life!
1 MIN READ

Cantona explodes: Ferguson is my boss for life!

The reigning champion team advances to the quarterfinals
1 MIN READ

The reigning champion team advances to the quarterfinals

Färjestad's success – won the CHL regular season
1 MIN READ

Färjestad's success – won the CHL regular season

Ymer eliminated after giant upset: "It stings"
3 MIN READ

Ymer eliminated after giant upset: "It stings"

Mbappé's lawyer: Will take legal action
1 MIN READ

Mbappé's lawyer: Will take legal action

Sweden to miss U21 European Championship
1 MIN READ

Sweden to miss U21 European Championship

Tuchel takes over England
2 MIN READ

Tuchel takes over England

The Joyful News – Hurtig Ready: "Means a Lot"
2 MIN READ

The Joyful News – Hurtig Ready: "Means a Lot"

Wing-back gets her chance as Sweden chases the European Championship
3 MIN READ

Wing-back gets her chance as Sweden chases the European Championship

Ferguson ends as ambassador in United
1 MIN READ

Ferguson ends as ambassador in United

The Star's Message: Ending National Team Career
2 MIN READ

The Star's Message: Ending National Team Career

The Swedish club on the brink of bankruptcy – lacks 24 million
2 MIN READ

The Swedish club on the brink of bankruptcy – lacks 24 million

Eidevall leaves Arsenal after a tough start
2 MIN READ

Eidevall leaves Arsenal after a tough start

"We shouldn't be afraid of any team"
2 MIN READ

"We shouldn't be afraid of any team"

Million Rain for World Number One Sinner
2 MIN READ

Million Rain for World Number One Sinner

Tomasson praises Nanasi: Very good performance
2 MIN READ

Tomasson praises Nanasi: Very good performance

Confirms report of rape – Mbappé: Fake news
2 MIN READ

Confirms report of rape – Mbappé: Fake news

"Hien: Started a bit boldly and hastily"
2 MIN READ

"Hien: Started a bit boldly and hastily"

"Nanasi: 'A huge wonderful feeling'"
2 MIN READ

"Nanasi: 'A huge wonderful feeling'"

The Debutant Decided for Germany with a Cannon
1 MIN READ

The Debutant Decided for Germany with a Cannon