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12-21-2012, 04:58 PM
  #769
Morguee
That's Mind-boggling
 
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Quote:
Originally Posted by ULF_55 View Post
The trouble is teams do not have to provide audited financial statements to prove their claims of losses.



Read more: http://business.time.com/2012/12/19/...#ixzz2Fj1HyQgV
There is some manipulation of revenue but that is to be expected. I don't think anyone should consider the ability to write of the tax benefits as a good thing. This only means the owners have other businesses that are making money. Any business person worth their salt would rather have all their businesses making subtantial profits and paying taxes rather than having the "luxury" of being able to write off one business loss against anothers profit.

The increase in franchise value is like the housing market and just like the housing market it is starting to bust in Phoenix. The Maple Leafs will never be worth more than what Bell/Rogers paid for MLSE because of the circumstances. They needed media to fill their other products and that is what they were buying. There is not many(any) other businesses in Canada where this need existed with the financial backing to make iot happen.

The teams do make money from hockey that may not be considered HRR but the players also make money from hockey that does not count against the cap(sponsorship deals).

While the players may not make as much money there are teams out there that will actually lose money and the owners other businesses may not be making enough to make the losses "beneficial" to them.

...like to continue but it is 5 pm EST and the holidays just started!


Last edited by Morguee: 12-21-2012 at 05:00 PM. Reason: got to go.
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