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11-14-2012, 03:53 PM
  #947
mranderson
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Quote:
Originally Posted by DyerMaker66 View Post
Their revenue is not and will not be decreasing any time soon (current lock-out excluded).

History has shown that revenue will increase by 5% (or more): This is unreasonable in some way? The real problem is that you're buying Bettman's "poor me" attitude.

As stated before: HRR does not include all revenue that it could (and should).
I'm not sure which text book or business school the assertion above was taken from, but that is an extremely curious position to take.

With so many variables in play, included human behavior being what it is, predicting future revenue is an extremely difficult task, even for the most (financially) successful individuals.

Moreover, while some expenses (namely employee salary) vary proportionately with revenue, others will not. And the potential for the growth rate of those other expenses to surpass income is yet another part of the risk each businessman takes in owning an NHL franchise.


In relation to HRR:

There are very real reasons why some items aren't included.

If player compensation is set to X% of HRR and if all items were included, then it would actually be more beneficial for an NHL team no STOP selling items - such as beer, fast food, etc. - whose profit margin is less than (100-X)%.

And that would make absolutely zero sense.


Last edited by mranderson: 11-14-2012 at 03:57 PM. Reason: Added paragraph breaks to make this post easier to respond to and argue with.
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