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02-10-2013, 01:51 PM
  #26
J17 Vs Proclamation
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Quote:
Originally Posted by Yakushev72 View Post
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.
The costs are large. Perhaps % wise relative to their total wealth, not so much, but it's still realistically large.

A business model of being run by incredibly wealthy owners who don't care about losing millions isn't sustainable. Yes, right now, they don't care. It's a little naive however to think this will continue. How long this model continues for, i have no idea.

I truely believe for instance that the English premier league will have a huge bust cycle at some point in the future. It isn't a sustainable business model forever.

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