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12-13-2012, 10:48 PM
  #979
Ducks DVM
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Quote:
Originally Posted by LetangInTheSO View Post
This is actually untrue. I just used Forbes' #s (not perfect, but certainly not wildly far off) and calculated this:

Salaries aside, the average operating costs for each team average ~$50M.
The top 20 teams gross a total of ~$2.3B in revenue (/20 = an avg. of ~$115M revenue/team).
57% of $2.3B is ~$1.3B (/20 = ~$65M salary cap).
Thus, with 57% of revenues going to players and another $50M/team for operations, the league could break even.


Thus, the NHL could operate at break-even (the actual #s show them coming out just above) by lopping off the bottom 10 teams and maintaining a 57% salary cap.


I'm actually not even advocating for a 57% salary cap, I'm just saying that the league's problem isn't the salary cap, the problem is a handful of poorly located and/or poorly run franchises.
So you're saying that the teams would need 115M to break even. Go check your list and see how many teams had 115M or more in revenue then get back to me. You just created a ton of teams losing money.

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