Can KHL ever become profitable?Does the league even want to become profitable?
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02-26-2013, 10:17 AM
Join Date: Dec 2010
Originally Posted by
chinese needs gas and oil. Russians have gas and oil. Really? You dont know how russians do bussiness?
China was only a example, Asia is better word
Whatever form the discussion takes, and whatever the sources of revenue, its safe to say that most KHL franchises can sustain the current level of losses for a long time. It was always anticipated that those franchises that lacked the financial wherewithal might drop out somewhere down the road, but if the basic core is strong, the goal of creating a top-flight league will be sustained well into the future. Financial solvency is based on a combination of factors that go beyond mere gate receipts. There is television money, which is a huge part of the equation, and merchandizing, among others.
One of the biggest indicators of success for professional sports franchises is television viewing audience ratings. What KHL owners will look at, 8-10 years down the road, is whether the league has caught on with the public. Do viewer ratings suggest that a continously growing segment of the public is watching KHL games? Are there indications of growing rivalries based on city/regional affiliation? Are there "stars" emerging who have become fan favorities with a broad segment of traditional sports viewing? If the answers to those questions is no, then investment in the KHL will likely drop off, and the league may be in jeopardy. On the other hand, if the answer is yes in all or most cases, then investment will certainly increase, and outside sponsors will want to get in on the action.
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