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Leipold Losing $10 Million/Yr on Wild

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Old
09-14-2010, 01:40 PM
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countrygentleman
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Leipold Losing $10 Million/Yr on Wild

I didn't see this being mentioned anywhere, and I can't find the original source that the creator of that thread claims, but interesting nonetheless. A post on the Wild's forum claims Wild owner is losing $10,000,000 a year on the Wild. Supposably the figure is in an interview with him from Russo in Sunday's Star Tribune. I don't get the Tribune at college, so if anyone can dig that up and confirm this that'd be awesome.

http://fans.wild.nhl.com/community/t...myear-on-wild/

So, I'd give it, what, another seven-ten years before North Stars part II occurs and Wild no longer hold any interest in the general populace and continue to lose massive amounts of money and get outta town. Your thoughts?

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09-14-2010, 01:51 PM
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this providence
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Your thoughts?

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09-14-2010, 02:55 PM
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Jarick
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I doubt it...maybe if you look at the books alone and they build in the depreciation or repayment of the Xcel Energy Center loan. But there's no way the Wild can possibly be losing money at those ticket and concession prices and with those sellouts.

Also, lots of misinformation in that thread...the NHL is mostly TV based revenue? Suuuuure....

According to Forbes, the Wild had a profit of $1.3m for 2008-09 (last year's numbers not out yet). They are valued at $210m although Leipold bought the team for $225m, maybe that's what he's referring to?


Last edited by Jarick: 09-14-2010 at 03:07 PM.
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Old
09-14-2010, 03:04 PM
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Winroba
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Just need to tank this year, land Larsson in the first overall draft pick for 2011 and re-build a contending team, just a few solid pieces and big names away from making waves

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09-14-2010, 03:36 PM
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llamapalooza
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I was under the impression that many sports teams are just tax dodges for their owners, and that they will mess around with the accounting until they can post a net loss. I have no idea if this is accurate, though I know movie studios will do it to screw over anyone who accepts a "x% of net profit" contract.

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09-14-2010, 04:20 PM
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Quote:
Originally Posted by llamapalooza View Post
I was under the impression that many sports teams are just tax dodges for their owners, and that they will mess around with the accounting until they can post a net loss. I have no idea if this is accurate, though I know movie studios will do it to screw over anyone who accepts a "x% of net profit" contract.
From my understanding, sports teams are just billionaires play toys anyways.

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09-14-2010, 05:00 PM
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bozak911
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Quote:
Originally Posted by llamapalooza View Post
I was under the impression that many sports teams are just tax dodges for their owners, and that they will mess around with the accounting until they can post a net loss. I have no idea if this is accurate, though I know movie studios will do it to screw over anyone who accepts a "x% of net profit" contract.
Or you could be George Lucas who basically gave away the Star Wars movie profits in exchange for massive cuts of the merchandising pie.

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Old
09-14-2010, 06:20 PM
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rynryn
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What exactly would claiming a loss (vs. actually losing money) do for you? Publicly declaring it, I mean--leaving aside the validity of the claim.

is it a PR thing? Rather be seen as "doing it for the love of the game" rather than "rich arse only in it for the money"?

Is the loss something to do with the concession switch-over? Maybe he granted his wife's company a sweeter deal--maybe they take in less of the concession revenue than they did under centerplate? He still comes out even that way but can claim a "loss".

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09-14-2010, 10:11 PM
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First off, a post on a message board (yes, even this one) does not constitute a source. Please remember this in the future.

Second, I'm reading the Q & A now (which someone probably should have done both on here and on the WMB's speculating thread) and he says that the team is better off than most of the league's teams.

Third, it's possible that Leipold loses money on the Wild based on a few factors like He also owns the Aeros (who have to be bleeding money), the team hasn't been to the playoffs in a couple years, the Wild may not have a great TV contract and most importantly there are a lot of ways to move figures around. I doubt he's actually losing $10 million a year but given that most teams figure their numbers around making the playoffs it is possible for Leipold himself to be losing some money on the team through creative accounting but will be fine in the long run. If anything, he said (or didn't say) what he did to humanize the raising ticket prices and try to shake the perception of the team raking in boatloads of money.

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Old
09-15-2010, 08:01 AM
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Here's the Q&A. I stand by my previous post.

Quote:
Q I've been told that you've lost $10 million in each of the last two seasons. Can you talk about that?

A No, I don't think it's appropriate to talk about business. Fans don't want to read an owner talking about [losses]. I would just say there's 25 teams in the NHL that would love to have the business we have.

Q Fans do have a perception though that you're just making piles of money.

A That is not accurate (laughs). Fair to say that is not accurate (laughs hard). But, look, we have a great ownership group, and like every team in this league, it hurts [financially] when you don't make the playoffs. If we make the playoffs, we're going to be in great shape. But we're committed long-term. There's no, 'Hey, this year we have to make the playoffs from a financial perspective.' We're fine financially.

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09-15-2010, 03:15 PM
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I don't know how that would be possible when they sellout every game. They would have to have a terrible arena deal and poor corporate sponsorship. I don't know about their arena deal, but I doubt the latter is true. They must have decent TV ratings as well.

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Old
09-15-2010, 04:07 PM
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Like I said, I think it includes the lease and perhaps team depreciation or something. I'm sure he's writing up as many losses as possible for tax purposes. I have no source but I recall that the Wild were paying down the Xcel lease early as well...again, probably for tax purposes but also so that at the end of the deal obviously they make more money for themselves.

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Old
09-15-2010, 04:20 PM
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This is all just smart bookkeeping people. Nothing to see here. Tax purposes. Move along, folks.

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Old
09-16-2010, 02:44 PM
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Don't believe it

Show us the books on this one, if the Wild are hurting I wonder what the Thrashers - Coyotes books look like.

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09-16-2010, 03:12 PM
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Welcome!

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Old
09-16-2010, 04:30 PM
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TaLoN
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The Wild themselves may be losing money, but MSE, the parent company that runs the Wild is doing VERY WELL.

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Old
09-16-2010, 05:56 PM
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i'm sure there is a qualifier somewhere. Tack on a "...versus our last playoff year." at the end of "The wild are losing $10 million..." for instance.

i heard every playoff game is worth around $2 million to the team*. It's one of the main reasons you'll never have an owner/GM tank to reload for a cup run when they have a chance of even making into the first round. Mediocrity is profitable as long as you're in the top 55%.

*heard this from a staffer on an NHL team. and it was two years ago so who knows what it is now.

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Old
09-16-2010, 10:05 PM
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That and having to pay players who either are injured or just out right suck.How much was he losing before he sold Nashville?

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Old
09-17-2010, 02:35 PM
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BigT2002
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Quote:
Originally Posted by PookDo View Post
That and having to pay players who either are injured or just out right suck.How much was he losing before he sold Nashville?
The agrument over the fact that team has not been popular in its own city definitely comes to mind for me dude. Nashville can't sell it out to save their lives, and as I said in another thread...the Preds typically make the playoffs every year, something the other 3 expansions can't appear to do year in and year out. And they do it while playing the Red Wings and now the Blackhawks 6 times a year. Not exactly easy games as compared with Edmonton and Colorado in the same timeframe.

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Old
09-17-2010, 04:01 PM
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bozak911
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Quote:
Originally Posted by PookDo View Post
That and having to pay players who either are injured or just out right suck.How much was he losing before he sold Nashville?
Contrary to your uneducated opinion here, Nashville actually breaks even, historically.

Two reasons; They have an internal cap ceiling and they consistently make the play-offs.

It just isn't a market in which to have the majority owner a huge hockey fan. Leipold wanted a team in an area of huge interest, as he stated in the interview during the 08 play-offs, when it was announced he had made the purchase.

He actually went into more detail about how Nashville broke even, just because of their consistent 60% chance of making the play-offs. Someone (on TV) also commented on that fact when Lemaire knocked Nashville out of the play-offs in the first year Leipold owned the Wild.

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