Nashville Predators-The Business Side
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11-27-2013, 06:03 PM
Join Date: Feb 2003
Originally Posted by
Just because the Predators are reporting a loss doesn't necessarily mean that the owners are losing money. For example, if the owners are showing a loss of $800,000, but collectively gave clients of their other businesses $900,000 worth of free tickets/suites/etc, then they technically made a profit $100,000. Granted, it's not quite that simple... but sports franchises are oftentimes "loss leaders" for other business ventures.
And here's another angle. If you had a team that was worth $200 million in 2012, lost $800,000 in 2012-13, and then had a value of $205 million for 2013 --- well you just spent $800,000 to get $5,000,000. Or a net gain of $4.2 million that you'll get on the backend when you sell the team.
I don't think you can justify arbitrary franchise values as them gaining money. At least, I sure hope the owners don't see it that way (would mean they are thinking of selling).
But everyone is right, these numbers mean absolutely nothing and can be tinkered to no end. The least of which, do owner's take a salary? I'm sure they see their time as valuable, and they each could be a taking a million+ in salary.
The big unknown is just how much owners get from off ice events. I'm sure there's some insight to this, but I don't know it.
But we can probably safely say based off our team salary and hockey revenue, the Predators by themselves are losing quite a bit of money. But they offset it to some degree with revenue sharing checks, off-ice events, and tax payer subsidies. What degree?... I don't know.
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