2012-13 Lockout Discussion Part VII: The Last Waltz "Cut the sheet & drop the puck!"
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11-17-2012, 12:14 PM
Bring back Torts!
Join Date: Sep 2008
Location: Tampa, FLA
Originally Posted by
Good read on how teams that claim they are losing money are actually making profit.
"Last year, Forbes estimated that the Panthers lost $7 million. Over the last nine seasons, they calculate the Panthers total losses at $68 million, an average deficit of $7.5 million per season."
Interestingly, the picture that Forbes paints is at odds with that presented by Broward County. Broward County was primarily responsible for the construction of the Panthers’ arena, and as a result gets to look at the books of the organization.
According to the county auditor, the organization made $117.4 million in profit between 1998 and 2012.
"because hockey-related revenue is defined in such a way as to show losses: owners have generous deduction allowances – in some cases, as with television broadcasts, the owners can deduct up to 100 percent of revenues as a “direct cost” – and certain forms of revenue (including many of the government subsidies teams receive) are not included in the calculation.
The bottom line is that the Panthers’ current ownership did not get into hockey to lose money, and according to the county auditor they haven’t lost money. Florida, commonly presented as one of the league’s have-not teams, and an example of the dangers of over-expansion, is nothing of the sort:
it’s a healthy business, carefully presented to appear like a money-losing operation.
"Unfortunately, it is impossible to know what the situation is in other NHL cities. NHL teams are private companies, and have no obligation to divulge their financial data. But the fact that the Panthers are seen as one of the poorest clubs in the league suggests that the vast majority of NHL teams are doing just fine."
I saw a tweet about this yesterday. Can anybody tell me why we're in this situation now? I just want my Rangers hockey back. Florida's doing fine. Then I'm sure Nashville, Carolina and Tampa is. Jeff Vinik - owner of the Lightning - has money. He just doesn't walk in and remodel an arena and donate money if he knows he's going to lose money. Enough of this.
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