View Single Post
Old
09-12-2004, 02:37 AM
  #41
SuperUnknown
Registered User
 
SuperUnknown's Avatar
 
Join Date: Mar 2002
Posts: 4,525
vCash: 500
Quote:
Originally Posted by Russian Fan
Where in my 1st post ? It's all about BAD MANAGEMENT, BAD ACCOUNTABILITY !!
I agree with you, and the first step that a good management will do is get a better CBA for the owners.

Unfortunately, the players can't have it both ways.

Also, by the way, when you invest money, you usually do so wanting a return on what you invest. The NHL, to be healthy, should make profits of $150M+ each year.

Besides, building a rink to increase revenues isn't so simple... First off, you need to pay for the rink. If you're in need of a rink to make profits, you probably don't have the money. Most rinks cost over $200M. Just the interests on the loan to cover that will be over $10M per year. Also, the rink won't last forever. If it is good for 40 years, that $5M in capital per year. Bigger rink = more maintenance, say $1M more. You have more seats to fill, more corporative boxes. You need a bigger/better marketing force, add $1M again. Projected revenues of $25M more probably are counting on maxing out the seats and the boxes, which might not happen (or the team may need to reduce the overall prices to fill the extra seats/boxes). So in the very best case scenario, you increase your financial situation by $8M with the new rink (and probably less since the figures I outlined are VERY conservative). Not that big of a boost, and that's if all conditions turn out for the best.

Btw, the players are playing with the numbers just as much as the owners are. 76% of the $224M net loss were made by 6 teams. However, the team that lost money lost an overall $273M. Which means that a total of 6 teams lost $170M and that the other teams (losing money) lost $103M. If that's 14 teams, it's an average of $7.36M per team, which means that they need to cut expanses by an average of $12M each to make a small return on equity of $5M each (which SHOULD be expected).

Lastly, I think that NHL fans should be wary that the teams making money are those who have lackluster teams (Minessota, Pittsburgh, Carolina, etc). If that's the way to go, then maybe we should become a North American league and leave the top international talent play in their country because our league isn't rich enough to pay for their services.

SuperUnknown is offline