View Single Post
Old
10-02-2012, 09:59 AM
  #64
hatterson
Global Moderator
 
hatterson's Avatar
 
Join Date: Apr 2010
Location: North Tonawanda, NY
Country: United States
Posts: 12,583
vCash: 50
Send a message via Skype™ to hatterson
Quote:
Originally Posted by AHockeyGameBrokeOut View Post
Unfortunately, that IS how a publicly financed team works. The city provides them with a loan which must be paid over a fixed number of years, or it will incur interest. Season or no season, the owners will still be paying off that loan. The loan number that the city allocates IS public.

Do you know where that loan money comes from? It comes from the taxpayers who reside in those cities. Try to tell those people earning $40,000 a year that the hockey player making millions needs more cash to 'feed his family' and see if they don't laugh right in your face.

Poor, starving hockey players...
NHL teams aren't publicly financed. How many teams even have any public/government loans?

Also, paying off a loan is fundamentally different than paying operating expenses. Paying off a loan helps the financial situation of the company as it is now in better shape from a debt:income and debt:value ratio. Certainly owners prefer to make debt payments from profits rather than from external accounts, however they're much more willing to take losses resulting from debt payments than virtually any other loss.


No one said the players were poor, however to say they don't have bills to pay is silly. And, unlike the majority of owners, the players sole source of income is the NHL. The majority of players are cut off from making money at anywhere near the level they're accustomed to which can quickly lead to financial issues

__________________
Come join us on the By The Numbers forum. Take a look at our introduction post if you're new. If you have any questions, feel free to PM me.
hatterson is online now   Reply With Quote