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11-12-2012, 10:27 PM
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Originally Posted by HCH View Post
Revenues aren't profits.
That is something that every single person on this board understands.

For the record, the NHL officially has ~3.8 billion dollars in revenue, and ~160 million dollars in pre-tax profits, though the true profits are no doubt vastly higher once you include synergies.

Originally Posted by HCH View Post
Generally speaking profits are revenues minus expenses. They may have had record revenues but they likely had record expenses as well. In addition, those record revenues were concentrated in the hands of a very few teams meaning that many teams lost money.
That's the way the business world works. Most profits come from a small subset of franchises.

Originally Posted by HCH View Post
Perhaps the "median" revenue rather than the "average" revenue should considered when calculating the cap. That would eliminate a lot of the distortions that occur when you use averages.

Maybe the salary cap should be based on median salary, rather than total salary, to eliminate a lot of distortions that occur when you include the salaries of star players.

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