2012-13 Lockout Discussion Part VII: The Last Waltz "Cut the sheet & drop the puck!"
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11-19-2012, 05:19 AM
Join Date: Apr 2004
Originally Posted by
in the hall
Going back to this post about the Florida Panthers raking in revenues, think this edit in that story needs to be pointed out.. see quote I pasted under
Essentially the revenues could be a biproduct of all the other events and properties under that umbrella, so the article really isn't an accurate representation of how much money is being made or lost by the Panthers. Revenues from say a concert are going to be big versus revenues over a game - think of the costs in operating a team, like travel, hotels, etc those aren't incurred when you open your doors up and have a band playing.
Originally Posted by
Bleed Ranger Blue
Sure seems like this "journalist" was so quick to nail Panther ownership to the wall, that the main piece of evidence proved to be totally and laughably incorrect.
You are definitely missing the point with the article. Just look at the title.
Why do billionaires keep buying teams that lose money?
Nobody is saying that the Panthers, isolated as an entity, is making money. What the reporter is saying is that
if you own a pro team
, you can get a favorable deal on an arena, you get a business that can cover basically a very big part of that arena, and with the open slots in the arena you can make money.
IE, what the article is saying is that its not charity for them to own a pro team.
The journalist asks himself this question:
The owners, whether as companies or individuals, are extremely wealthy. Yet many teams reportedly lose money every year, and with few exceptions even the profitable clubs donít make that much money. Why would phenomenally successful men sink money into a black hole like that?
Is it simply a case of viewing hockey teams as luxuries where they can afford to bleed red a little?
And the answer is absolutely undeniable, even the owners of such badly run org as the Panthers, during horrible financial times, makes money from owning the Panthers. Not directly from the team, but he can own an arena due to owning the Panthers and when adding up all numbers he makse a profit.
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