It says here Players talking of $60 million luxury tax threshold
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09-07-2004, 12:28 AM
Callng out the crap
Join Date: Jun 2002
Location: Blasting the bull***
Originally Posted by
i don't have quotes or anything but here is how the Rangers make money. Dolan owns %100 of MSG, Dolan owns 100% of the MSG network and Dolan owns the Rangers. He is triple dipping into the team. While some teams might be lucky to get 50% of the gates at any hockey game, dolan gets 100% of the gates as well as food revenue(because he owns the arena and the team). If Dolan only owned the Rangers, sure it would be a losing proposition, but you figure he cleans in roughly 2 million+ a game when all is said in done with him owning both the team and arena(80 million over a season).
When he is doing his financial records, he probably only claims a small amount(let's say way less then the average team) of the gates at MSG and can write the team as a loss.
The same can be said about his local TV coverage. Dolan gets 100% of that money as well(every cent that advertisers pay go into dolan's pocket as well as every penny that cable companies pay him to have his service which show the Rangers), while most other teams can only claim a percentage.
The profits from the ownership of the TV coverage and the rink should not count towards the Rangers profits. He is entitled to make money on both as seperate entities from the Rangers. Without knowing the exact amounts the TV coverage pays the Rangers or what equivalent rent the Rangers should pay its impossible to get an accurate read on the true standing of the Rangers.
The Rangers probably play 50 games a year at the MSG. 18,000 fans * avg ticket of $66 * 50 games gives us a potential income of about $60 million. Take away from that, equivalent rink rent, running costs, labour costs.
I could see them losing quite a bit of money if they don't make the playoff (which they aren't). They wouldn't be a worse team under a $45m cap and they would make every bit as much revenue. Hard to say no to saving $30m.
Last edited by me2: 09-07-2004 at
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