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11-17-2012, 03:45 PM
Join Date: Aug 2005
Originally Posted by
I know I've made the argument before that I don't trust the owner's math that they're losing money. This piece from the Edmonton Journal provides you with some evidence of that.
If you dig into it, they detail some of the reasons
why the Panthers
, who allege to lose over $7M a year,
are actually profiting over $8M per
No they're not.
If you dig into the article, to use your words, that should be clear. In your defense, the writer did an incredibly poor job laying things out. I think that was largely due to his obvious misunderstanding of the topic. There is also an update at the end of the article where the writer admits misreading the audit that was used. The writer was confusing AOC's profitability as being SSE's thus muddling the picture.
The Florida Panthers are a division of Sunrise Sports and Entertainment LLC or SSE for short. SSE has another division, AOC or Arena Operating Company (boy were they creative with this name
). AOC operates the arena for the 70-100 events that take place there each year on top of the 41 Panther home games. AOC, as the article points out, is incredibly profitable.
Basically SSE as whole made money while its Florida Panthers division lost money. The Panthers are a lost leader of sorts as the anchor tenant of the arena.
In 2007, Forbes estimated the Panthers lost $7.1 million while AOC reported a profit of $9.5 million. That would mean, with the assumptions above, a $2.4 million profit for SSE. In 2006, Forbes estimated a $1.9 million loss while AOC had huge profits of $11.7 million. That's $9.8 million in pure profit for SSE in a year the Panthers themselves reported a loss.
The Sabres are set up in a very similar fashion.
One of the main reasons the Thrashers had to relocate and were losing so much money was due to not controlling the arena. I believe the Hawks do. A hockey team as a stand alone entity has a very hard time making a profit because of how gate driven the revenue streams are for each team but their player costs are driven by league wide factors.. There are only a very small handful of markets that could make it as stand alone entities.
Last edited by joshjull: 11-17-2012 at
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