Does Anybody Here Remember Vera Lynn? (CBA & Lockout Discussion) XXVIII
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11-14-2012, 08:43 PM
**** Cycle 4 Eichel
Join Date: Mar 2011
Originally Posted by
Stix and Stones
So the owners have perqs and are doing just fine. Too bad they want even more at the expense of the emloyees. I have no sympathy for the owners. If you couldn't give teams away I'd believe them. As I said there is only one team that fits that description and even that team would sell for over 100 million if it was allowed to move.
The sound of the real world passing by must make quite a whoosh.
(1) The NHL will have disappeared long before it gets to the point where you "couldn't give teams away." Go into any corporate boardroom in America after a couple quarters in the red and ask if you can buy the company for your pocket change. It doesn't happen. Any asset that can generate a hundred million dollars in revenue every year is worth hundreds of millions at least, on the principle that its costs can be cut and it can be made into a profitable venture. You want to know what is happening right now? The costs are being cut.
(2) The owners have perks and are doing fine? Go back to fantasy land. The median owner is losing money every year. The average franchise makes just $1.5M more than the average player, and after you split that between several owners, probably less per owner than the average player. The TV deal, the arena rights, etc. - these are all just part of the revenue stream that still adds up to a net loss. You want to know what is happening, by definition, when a company is making a net loss? Some factor of production costs more than it's economically worth to the consumers. Unless you have some great evidence that the popcorn guy is making more than he deserves, I'm gonna say it's the millionaires who make 57% of the company's total revenue.
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