The Lockout (is over!!!!!)
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11-17-2012, 12:29 PM
Join Date: Oct 2010
Originally Posted by
The reality? The NHL is making record profits as to revenue. Their losses are all due to their own stupidity.
PROFITS AND REVENUE ARE NOT THE SAME THING
. Revenue simultaneous to cost increases doesn't lead to increased profits. They are
making record profits.
The league revenue figures are being propped up by a handful of major markets. Three teams (Toronto, Montreal, New York Rangers) have a $171M profit. The other 27 teams combine for a collective loss of $44M. The revenue in large hockey markets continues to drive the league totals upwards, but most franchises aren't seeing an increase in revenue. Thus they can't keep up with the rising salary costs (since the cap ceiling/floor is based on total league revenue).
You know what the alternative is to the "owner's stupidity?" Collusion. It's a competitive free agent market, so team management is forced to bid higher and higher in order to remain competitive (or even just to retain homegrown talent). The only way to avoid that is to have the owners agree not to bid against each other, which is not only far worse for the players, it's illegal.
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