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09-18-2004, 12:46 AM
the last emperor
kurt's Avatar
Join Date: Sep 2004
Location: Victoria
Country: Canada
Posts: 8,330
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Even if teams are losing money, does it matter?

Another thing I don't get about this whole idea of owners losing money is this: if so many teams are losing so much money, how come the league expanded to 30 teams? How come somebody always seems to be out there to purchase a team that's for sale? Are all the rich folk out there suckers for punishment or what?

I think another aspect often overlooked is the fact that many owners are in the ownership of hockey teams for a recreational benefit. Think of it this way. If I buy a snowboard, I'm not expecting to earn a return on my investment. I'm using it to have fun. In a sense, the same can be true with hockey teams. Obvoiously, they don't come out to lose a pile of money, but they don't expect to make a pile of money either.

One other thing is, sometimes a business that loses money can be appealing, and beneficial to an owner. I know, I know, crazy talk. However, a business that generates a lot of CASH flow (up-front season ticket sales, game/concert tickets, alcohol, food, parking, etc are all cash transactions) makes cash available for other ventures. And, in the right situation, the losses may lower the parent company's tax bracket, resulting in a gain in income at the end of the day.

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