Thread: News Article: Devellano CBA Comments
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09-25-2012, 03:42 PM
  #64
corksens
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Quote:
But margins are getting squeezed. During the 2010-11 season the league posted operating income (earnings before interest, taxes, depreciation and amortization) of $126 million, 21% lower than the previous year. Main reason: Player costs increased 11%, to $59 million. Last season 18 of the league’s 30 teams lost money even before they had to pay bank loans or write down assets, compared with 16 the prior year.

The league’s salary cap, set at 57% of revenue, is too high for some teams to be profitable . As a result, expect the National Hockey League to undergo a cantankerous labor negotiations when the owners and players union begin to hammer our a new collective bargaining agreement to replace the current six-year deal that expires in September . The NHL must move much closer to the 48% model the NFL agreed to before this season or the 50-50 revenue split National Basketball Association’s owners and players recently agreed to.

http://www.forbes.com/sites/mikeozan...ness-of-hockey
18 teams lost money.

18.

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