Sharks News/Notes #10
View Single Post
08-20-2012, 02:29 PM
Join Date: Sep 2008
Location: Saskatoon, SK
Originally Posted by
With regard to the Sharks ownership article:
Not sure if I read it correctly, but are they losing millions of dollars as a whole, or is it only the hockey operations that is not profitable? I remember someone saying a while back that Sharks are part of SVSE, but SVSE is still profitable in other areas.
I have a hard time believing that owners are willing to lose millions of dollars a year, and if it is the case, I do feel lucky as a sharks fan to have ownership that WANTS to be in the hockey business.
I'm not sure if anyone knows how the breakdown works, but I find it hard to believe that the Sharks aren't profitable. Ticket sales alone would bring in something like $65M/year, let alone merchandise/tv/other licensing agreements.
Compton and Sclavos seem to be interested in winning and would seemingly be willing to take a hit to get a better product (for now). An interesting point mentioned in the article is that a franchise is an investment as a whole: the purchase price for the Sharks was much less than the valuation is today. Therefore, they can operate at a loss knowing that the value is "built in" if they were to sell the keys to the shop.
Oh, and SVSE is no more. To show their commitment to the Sharks, SVSE became Sharks Sports and Entertainment. Just my opinion, but I think we can read into that branding pretty deeply when seeing where owners set their priorities.
View Public Profile
Find More Posts by RammsteinGT