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12-01-2010, 10:31 PM
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Originally Posted by Korean Devil 23 View Post
The Devils make the 11th most revenue and are the 11th most valuable team. But what does everything else mean? Why do they have the highest debt? I wish I was a business major.
Well you guys have a new arena right. So it's probably mostly financed by debt so the high debt to value ratio. It multiples the owner's return on equity so it's a popular way of financing.

Guys, debt is not a bad thing. I would be concerned if a company had low debt leverage.

Originally Posted by stardog View Post
I was wondering the same thing about the Pens. My only guess is that with the new arena, it possibly put them into the red?

Someone who knows more about the situation can confirm or shed some light onto this situation.
Operating income doesn't include debt expense. It's purely a function of revenue and cost. My guess is the Excel energy center had cost overruns not debt expense.

Originally Posted by Frozen Failure View Post
I'm mildly surprised where Dallas is on this list. My question is, why is Dallas earning money, yet other teams like St. Louis, and even Pittsburgh and Washington, in the red?

(I know we're a lot of debt. I hate you Tom Hicks.)

Includes arena debt. You have a new rink, right?
Or that Dallas is very cost efficient. Tom Hicks also owns the Cowboys right? Are they part of a same corporation? My guess is cost synergies?

Debt does usually have an adverse effect on value. Take chicago and Vancouver. same operating income. Vancouver has high debt. Vancouver has lower value.

Last edited by Nidema: 12-01-2010 at 10:37 PM.
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