View Single Post
01-04-2013, 01:51 PM
Smartest in the Room
KINGS17's Avatar
Join Date: Apr 2006
Country: United States
Posts: 17,297
vCash: 500
Originally Posted by santiclaws View Post
First of all, I am far from convinced that the majority lose money even on paper. We have zero actual evidence of that. Second, you can lose money on paper and actually not be losing money. Third, a business that loses money can still be a valuable commodity to a vast enterprise - as a tax writeoff, for instance. Fourth, and maybe most importantly, outside of a few teams, the annual profits is not where the real money is. The real money is in franchise values which have been on average going up, and fast. A second lockout could wreck those franchise values. The owners have LOTS to lose.
How long can franchise values continue to rise? The bubble in regard to the value of sports franchises is here IMO. Just look at the ridiculous amount the Dodgers for which the Dodgers were sold.

There is no evidence that the teams are operating at a profit. Did not the NHLPA have the ability to audit the books? If so, why has Fehr been quiet on this subject if the majority of the NHL franchises are operating with a profit. I think the fact is that they are not.

The idea that the owners get a tax write off so they should be happy running a charity for their employees (the players) is bogus.

Originally Posted by Captain Bob View Post
Franchise value. Public good will.
I would submit that franchise values are already inflated and if they drop it won't necessarily be due to the lockout.

Public good will? Will you stop attending games? Hockey fans are diehards, they will be back. I expect that a short term drop in attendance is all that we will see.

KINGS17 is offline