Eric Lindros Speaks Out On NHL Lockout
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11-16-2012, 04:19 PM
Join Date: Nov 2004
Originally Posted by
There are several sources that give fairly close approximations to the profits and losses of teams.
You don't seem to understand that just because a team isn't in the red doesn't mean they are financially healthy.
A team should be making a rate of return that is at least enough to equal other possible investment opportunities. Also, many of these teams rely on playoff revenue to push them into the positive in the first place, and that is not how any league should run.
No, there aren't 'several' sources. There's Forbes' guesstimates, McGuire's recent general comment, and a sprinkling here and there. The only teams whose financial records come close to full disclosure was Phoenix during the bankruptcy trial, and Nashville due to the city subsidies given on the arena (team has to disclose financial info). Apparently the Panthers have to divulge certain info to Broward County in Florida.
I understand perfectly what financial health means, which is also why I'm not willing to make grand statements about the magnitude without having actual data on hand.
Finally, teams have a choice in spending, above the cap floor that is. If you budget spending to necessitate reaching the second round of the playoffs, you are betting, taking a gamble. As for ROI and opportunity cost.... well, that's another kettle of fish altogether when it comes to owning a pro sports team.
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