From Trevor Linden...
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09-14-2004, 08:49 AM
Join Date: Feb 2002
one correction: cost certainty does not guaranty any profits. The revenues have the be there too, and the rest of the business needs to be contained. Players salaries are the biggest element of the costs to running a hockey team, but it's not the only one.
And ticket prices are somewhat dictated by the payroll prices. Obviously supply and demand create elasticities in the price, but nonetheless owners typically use increases in payroll to justify their price hikes. Some may not believe the owners, but just like in any business, if the cost of the product goes up, you raise prices to at least compensate, and you raise the prices to the point where it can be tolerated.
I don't understand the Clemens example. In hockey we can hate, say, Yashin, and come his 30-something b-day, he can be a Ranger, and couple years later back to the Isles.
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