Quote:
Originally Posted by House That Rod Built
What is your source for these numbers? Find it very hard to believe that there are any accurate numbers available given that the Sens are privately-held.
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His source is Forbes:
http://www.forbes.com/teams/ottawa-senators/
Quote:
Originally Posted by Holdurbreathe
This statement is just not correct.
In 2011 the Sens had a operating profit of $2.8M, the 2012 numbers aren't available however it is safe to say the operating profit was even higher than 2011, given lower salary expense and playoff revenue.
From 2002-2011 the Ottawa Senators have shown an aggregate profit of $9.5M. Definitely not a lot of money, but still in the black.
However before you feel too sorry for Melynk, he also owns the wholly private Senators Sports and Entertainment, and financial reporting is unavailable. This company books all revenue from non-related hockey events at SBP, as well as shared revenue from the partnership with Capital Tickets. Probably safe to assume this company is making an annual profit.
As well Melnyk invested $92M to buy the franchise, the latest evaluation ~$201M.
Ottawa Senators hockey has/is doing just fine for Eugene financially.
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You've made the mistake of assuming operating income is equal to profit. The footnote on Forbes page clearly states that it is earnings before interest payments, and taxes which would give you the actual profit (if there is any). That being said, it is clear that Melnyk is making money in this venture due to the other income sources, however one must wonder how sustainable this is with the rate at which revenues league wide are increasing.