Penguins Seek Centerman And Defenseman
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08-11-2005, 12:24 PM
Join Date: Jan 2004
Originally Posted by
Thats the value of the franchise they're talking about. The money used to BUY the franchise. Yeah, they have a lot of equity tied up into the team. For the most part they get a return on that when the SELL their interest in the team.
We're talking about operating income. If the pens can break-even year in and year out, whats the problem? I don't know how you can get that the pens are in "trouble".
When the penguins were millions in debt years ago they were in "trouble". They had to declare bankruptcy. There are no similarities between then and now. The pens are not in danger of declaring bankruptcy.
Yeah, members of the owners group might like to make a little profit on a season here and there, but obviously its more important to them to ice the most competitive team that they can afford, while still breaking even, for a shot at the cup, new arena, etc. Which is a stark contrast to a lot of teams that, in the past, would have huge payrolls only because the owners had deep pockets. I think the Caps were doing that a few years ago (not trying to pick on the caps), when they had Jagr. The team lost millions every year, but Ted Leonis didn't care, he had cash to burn.
But I digress... your perception of the pens being in financial trouble is wrong. Don't know what else I can say.
Value of Franchise is proportional to the Income
Income is high - Value of Franchise is high... sell high - buy low...
it's simple business.. your not going to win this argument.....
and did I say anything was wrong with washington or pitts 3 years ago... so don't put other peopls stupidity on to me please and thank you........
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