Can KHL ever become profitable?Does the league even want to become profitable?
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02-08-2013, 02:23 PM
Join Date: Dec 2010
Originally Posted by
J17 Vs Proclamation
This has to be one of the worst analogies i have ever read. Haha. McDonalds franchises have low costs, high brand awareness and huge sales.
Hockey teams have HUGE costs. I think comparing the average salary of a hockey player in the KHL/NHL to what Fat Hobblin Harry makes in a Fast food Restaurant ... yeah
As long as wealthy Russian businessmen and the government continue to fund the KHL, it will be fine. Can't last forever of course. The question is, in 30-40 years time, will A) the KHL be a large consumed and watched sport in Russia B) Will the average Russian make enough relative capital to pay prices like we see in some NHL cities.
Difficult to know. The Russian economy will inevitably grow for sometime, but of course a crash is likely given how its structured (But we can say the same for all economies really given the nature of the system).
Hockey teams have huge costs? Huge in comparison to what? They pay for a building, maintenance equipment, practice facility, player salaries, employee salaries? For the oligarchs, these are petty change items, pennies, farthings. Don't you understand that most of these owners have no way of even noticing their hockey losses? Do you think Abramovich even notices any petty losses in his English Premier League football operations? A few teams aren't owned by exceptionally rich individuals, and they may end up in jeopardy, but that was all factored in at the outset. They expected some franchises to drop out. Let's say someone like Abramovich started losing $100,000 a day, every day of the year. Assuming no other revenue coming in, which is probably absurd, my calculator tells me that Abramovich could lose $100,000 a day for 264 years, until the year 2277. Hockey costs are nothing, especially in Russia, where operation expenses are lower. Any positive cash flow is just gravy.
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