Edmonton Journal: Why do billionaires keep buying teams that lose money?
View Single Post
11-19-2012, 11:41 PM
Join Date: May 2012
Originally Posted by
Given that SSE would not have the rights to operate the arena without operating the Panthers, the ownership makes money from owning the Panthers. .
They also wouldn't have the Panthers without buying the arena. Either point is misleading because it's inaccurate.
This is a bad example of the point you're suggesting the author might have considered making because assets are tied together.
They already exist together.
The Panthers didn't lead to another revenue generating cash cow for Viner, it was there for him already. The authors suggestion of a "gateway" was never addressed because one does/did not exist in Florida as he implies.
It's too big of a leap to conclude that NHL franchises are gateways. Franchises can be part of a profitable core, but they are seldom, if ever the core all by itself of a profitable parent operation. The revenue is too indirect of the franchise to assume NHL franchise ownership (parent companies) is more significant in turning a profit compared to how the rest of the parent company runs the businesses together and individually.
The hockey teams still lose money.
View Public Profile
Find More Posts by hockeydoug