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Jan 6/13: CBA reached to end the Lockout. Rejoice! (Post#783)
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12-08-2012, 01:57 AM
Join Date: Dec 2011
Originally Posted by
League seems to be doing fine - solid overall revenues since the lockout (conditions *are* better now than then - and that old CBA is better for the players than anything they're going to sign now).
Team valuations are up. They could afford to throw a few crumbs at the other side without going bankrupt. Question should be, is the NHLPA asking for too much not whether the league can afford to give anything - they clearly can.
Originally Posted by
Yes, it is.
If a team's profits over 7 years are only 10 million but the value of their franchise grows by 70%, that is not some fake value that the owner sees no benefit from.
I don't know why anyone would argue differently. Even if the team was "losing" money while seeing vast growth in franchise value, that would be a sound investment. What businessman wouldn't spend 20 million to make 70?
And besides that, the league is making tons of money. This is indisputable if you look at revenues/player shares after the Levitt report in 2004.
Forbes doesn't pull their numbers from thin air, either.
You can argue for whatever side you please, but the league is making a lot of money. That is indisputable. Even Bettman doesn't dispute it when he's talking up his legacy. That talk just gets quiet when he's spinning like a top for negotiation purposes.
I just want to point something out here regarding team valuations. A business is valued based on the expectations of future profitability, so Forbes's increased estimates of team value is not necessarily a sign that teams have been very profitable in the recent past. In fact, because the new CBA is expected to drastically change the performance of these businesses, Forbes's bullish take on team values does not allow us to infer much at all about past profitability.
No, Forbes does not pull its numbers out of thin air. Its analysts are surely basing their numbers on the boost that teams will get from a more team-friendly CBA.
Last edited by Chubros: 12-08-2012 at
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