Thread: News Article: Devellano CBA Comments
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09-26-2012, 04:29 PM
  #102
Lenny the Lynx
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Quote:
Originally Posted by corksens View Post
By the way, if the Ottawa Senators made enough money for Melnyk to cover all of his liabilities (and player salaries) and then pay him $20 million a year that would be just fine.

But that isn't the case. He doesn't derive any salary from the team whatsoever. Any profit (2.6m as quoted before) is usually held over for the next years operating budget.

The only time Melnyk will realize any part of this investment is in it's eventual sale.
I agree with you - but the reason he doesn't pay himself a salary is the same reason every person who owns a private business understates their salary, because corporate tax rates are much lower than personal tax rates, especially for someone who makes a lot of money. Like half.

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