Forbes 2012 annual review of NHL
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11-28-2012, 11:36 PM
Join Date: Dec 2011
Originally Posted by
The figures i guess include ALL REVENUES not just HRR..
If so, the Chicago case for example states:
REVENUES: $125 million
OPERATING INCOME : $20.9 million
ASSUMING approx. 70 million on salaries last year (they still had to pay Huet) to players --this leaves approx $55 million-the remaining operating income of $20.9 million --ie. it leaves approx $34.1 million to run all other expenses except interest,depreciation,amortization and taxes...
Now travel,insurance,minor leagues, coaching staff,all office staff and depts.including upto McD,hockey ambassadors,and any other hockey related expenses eat up this 34.1 million which one might think should be nearly about the same expense cost for everyteam (though it is possible some teams save on staff ,spend less on marketing, but otherwise a lot of the costs for the other expenses are nearly the same unless you share an ahl affiliate with another nhl team to halve that cost-- travel costs could be less for Eastern time zone teams that play mostly in closer proximity games to their most frewuent competitors in a dIvision of coNference...But allowing for some divergence in this category we PROBABLY get approx $25-$34 million reqiured to fund such expenses ...clubs spending at the max probably spend to the high end of this range...
so this means that a CAP team needs approx $105 million to just cover salaries and these other hockey expenses before any leftover for taxes,interest,amortization
and depreciation expense allocations...
At the bottom end though,you get NYI with just $66million in REVENUES
--even at the floor level of cap approxmationg payroll they still managed a remainder of $16million operating income --must have been some very cheap office overhead and maybe travel cost savings are mmuch much greater than i had assimed for certain teams in their Division in the Eastern Conference.. $66m-$48.3m = $17.7m remaining -$16 million in operating income--leaves only $1.7 million for minor leagues,coaches,travel,insur. and office staff and depts. expenses..
SO how did WANG get away so cheaply when Rocky Wirts had to spend approx $34.1 million for all that?
Can someone make sense of this wide apparent disparity...Maybe $10 million off I could fathom --but $32.4 million off on such apparent ''necessary" costs to run an NHL team? Accountants please explain!
It's called Wang digging out his cheque book and covering the difference. Keep in mind that he had a lot of cap hits that were higher than the salary owed that helped him reach the cap floor. But the only way the Islanders survive year to year is Wang writing cheques.
And I strongly suspect that that 34m is on the low side. It was ~22m 10 years ago according to Doug Maclean. I would be quite surprised if the
non-hockey costs are less than 35-40m.
I've been looking for trouble... but trouble hasn't been cooperating!
Last edited by Riptide: 11-28-2012 at
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