2009 Forbes NHL Team Valuations
View Single Post
11-12-2009, 05:42 AM
Join Date: Dec 2006
Location: Waterloo Ontario
Originally Posted by
I don't understand how the Forbes list always shows the Sabres losing large amounts of money (-$5.2 million in operating income), which is more or less in direct contrast to what we have heard from team ownership and management.
I'm deeply suspicious of Forbes' data because I'd really like to know where they get their numbers from. NHL teams don't open their books. So why does Forbes think they know how much money teams are making or losing?
I have said the same thing on many occasions.
As an Oiler fan, I see that the Oilers made close to $10M by Forbes estiatess despite reports from the team itself that it lost a fair bit last year. Interestingly enough the 13% drop in the $CDN did not seem to affect their profits or their revenue compared with 2007-2008, even with a salary increase of about $6M US. It seems that the Oilers must have done some real wonders in cutting non-salary expenses.
In fact, I notice that depite flat HHR from 2007-2008 to 2008-2009 and a league-wide increase in the salary budget of close to $200M the Forbes estimates for operating income went up by close to $40M US. Again this means that a league with revenues of less than $3 B found close to $250 M in cost savings outside of their player budgets. That's a pretty good trick!
Added in Edit: My numbers above are off since as mouser later points out Forbes may actually include escrow payments in their numbers. Still flat revenues resulted in $50 M in increased operating profits.
Last edited by Fourier: 11-12-2009 at
View Public Profile
Find More Posts by Fourier