New Sharks Owner - You cannot make money with a hockey team!
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02-02-2013, 03:53 PM
Join Date: Jan 2005
Originally Posted by
The NHL team has to be profitable regardless of what the arena does.
If the NHL team loses money every year and the owner makes it back from the arena, there's nothing stopping the owner from simply selling the team to another market and just running the arena at a profit.
Remember, the premise of this thread is "you cant make money on a hockey team", not "you cant make money on a hockey team and ancillary revenues".
Actually there is. For most publicly financed arena, the terms of the Master Lease or arena bond agreements prevent an owner from selling a team and retaing control of and revenues from the arena. In addition, many cities have non-relocation agreements or other mandatory use covenants which prevent relocations short of a team declaring bankruptcy.
The Sharks/SSE master lease on the HP Pavilion (and AIUI the Panthers in Sunrise) is dependent on the existence of the pro-team. The Sharks go, the lease goes, and control of the arena and all revenues reverts back to the city of San Jose - plus damages for breaking the Lease.
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