The Lockout (is over!!!!!)
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11-17-2012, 11:54 AM
Join Date: Jun 2006
Originally Posted by
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.
Correct.... which is why you must make sound business decisions: the owners do NOT!
As to the rest of your post, again, it's not the players who employ a socialist business model, it's the league. Franchises that are not solvent cannot be made solvent by taxation, which is what is employed. This never works.
Your last paragraph, I'm not buying. I'd remind you, that Tampa won the Cup with a payroll of $27-28 million, far below that years cap.
Just because you have a cap, doesn't mean you have to spend to its level.
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