Can KHL ever become profitable?Does the league even want to become profitable?
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02-10-2013, 05:12 PM
Join Date: Dec 2010
Originally Posted by
J17 Vs Proclamation
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.
These are rich men who want to use their money in a way that makes their hearts pump and their pulses race. Many of them haven't really earned their fortunes through business prowess - in a lot of cases, they were just handed these business enterprises by the government for a song. A lot of their business enterprises are relatively mundane in comparison to the prospect of a thrilling hockey game. This isn't just true in Russia - a lot of major sports franchises around the World are owned by rich guys who want to be part of the spotlight and have their money be associated with something that is fun, and has winners and losers.
I also think some of the Russian owners think that it is a way to help build sports glory in Russia. They see that Russia as a country has the basic tools to be a hockey powerhouse, but believe that it will never fully happen as long as Russian players are just part of the NHL apparatus. It things pan out, then there will a greatly increased demand for Russian hockey talent, and Russia does have the unique capacity to greatly increase its production of great talent, given the vast areas of the country that are undeveloped or underdeveloped from a hockey standpoint. And of course, they are gambling that further development of talent will pay off in the form of greatly increased interest and an expanding fan base.
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