View Single Post
Old
09-10-2004, 07:02 AM
  #26
Prof_it
Registered User
 
Join Date: Sep 2004
Posts: 152
vCash: 500
I think there is fault on both sides...when negotiations stall there always is. But while the day-day profits, and lackof, are well noted by the league, they owner's growth in equity is nearly always ignored.

Franchise Values

This Marquette Law Review study shows that nearly all franchises have seen their value grow. While some have lost value in the last year, information is from 2003, most are worth more than their initial cost.

Why would billionaires pay for a money-losing hockey team? As long as the future value of the franchise continues to grow it's not a money-losing investment. Key to increased value are new rinks and favorable lease agreements.

Also, anyone on here own a business...much different than running it for investors, where the net profit is so greatly needed to attract additional shareholders. A privately owned business needs to avoid taxes, at times operating at a loss.

Prof_it is offline