View Single Post
12-18-2012, 04:16 PM
Doing Nothing
Jarick's Avatar
Join Date: Jul 2007
Location: St Paul, MN
Country: United States
Posts: 23,509
vCash: 500
Profits = Revenue minus Costs

Revenue is the money the NHL makes, like all ticket sales, jersey sales, TV deals, advertising, etc.

Costs are what it costs to run the NHL, the biggest thing is player salaries, but also travel expenses, marketing, paying employees, etc.

Profits are the leftovers.

If profits are positive, you are making money. If profits are negative, you are losing money.

For 18 teams, profits are positive, so they are making money. 12 teams have negative profits which means they lose money every year. If you lose money every year, you get relocated or shut down.

Clearly we can't shut down 12 teams, so the alternative is to give less money to the players. That's what the CBA is about.

Instead of 18 teams making money and 12 losing money, maybe 25 teams make money and 5 lose money.

But the other part is that there will be increased revenue sharing, which means that the richest teams will give some of their money to the poorest teams.

Then you have nearly all the teams making money and everyone is happy.

Jarick is offline   Reply With Quote