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Kings are $4M under the cap...and staying there.

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Old
12-28-2005, 05:37 PM
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jfont
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Kings are $4M under the cap...and staying there.

http://msn.foxsports.com/nhl/story/5201874

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Due to budget cuts, the light at the end of the tunnel will be turned off
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Old
12-28-2005, 05:42 PM
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bacchusbuddha
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And some supplemental reading...

http://www.latimes.com/sports/hockey...nes-sports-nhl

"We would have to go back to ownership and ask to increase our budget" in order to make a trade, General Manager Dave Taylor said last week. "We haven't done that."


I'm not sure how I feel about that.

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12-28-2005, 05:47 PM
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TonySCV
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The KIngs/AEG have repeatedly said since before the start of the season that their payroll target was in the range of $34-35MM, and (surprise).. that's where they are. This is not new news.

They can always:

1. Make a trade to shed salary and take on salary at the same time
2. Increase the budget

It's a business... just like anything. I'm sure the'd like to make a profit after years of nothing but losses. I know I would.

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12-28-2005, 07:03 PM
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Yesterday's L.A. Times article has Leiweke saying that their budget is so that the team will turn a profit if they make the playoffs. That's probably why they decided on $34M as the team's soft cap. To extend the budget beyond that is to risk losing money. On the one hand, I can understand not wanting to lose money for the first time in team history, but, on the other hand, I can't help but see this as a team more interested in their bottom line than on winning. When you think about the amount of money involved, losing an extra $4M isn't much compared to the amount that could be made from 3-4 rounds of the playoffs. AEG is going the safe, low-risk route. If I were them, I think I'd budget so that the 2nd round is the break-even point (which would probably be the full $39M) and really try to get the team to that point, rather than shooting low for only a playoff berth and being happy with that.

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12-28-2005, 08:34 PM
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Quote:
Originally Posted by Osprey
Yesterday's L.A. Times article has Leiweke saying that their budget is so that the team will turn a profit if they make the playoffs. That's probably why they decided on $34M as the team's soft cap. To extend the budget beyond that is to risk losing money. On the one hand, I can understand not wanting to lose money for the first time in team history, but, on the other hand, I can't help but see this as a team more interested in their bottom line than on winning. When you think about the amount of money involved, losing an extra $4M isn't much compared to the amount that could be made from 3-4 rounds of the playoffs. AEG is going the safe, low-risk route. If I were them, I think I'd budget so that the 2nd round is the break-even point (which would probably be the full $39M) and really try to get the team to that point, rather than shooting low for only a playoff berth and being happy with that.

I hope AEG thinks like you do.

The Anschutz Corporation is a multi billion dollar company. 4M is virtually nothing. I doubt the corporation ever thought the LA kings would make them a signicant amount of money, if at all.

AEG own 4 MLS teams which are all probably losing money. So this makes me think that AEG doesn't intend on using pro sports teams as a way of producing reliable income.

Supposdily the reason AEG owns the LA Kings and other sports teams, is that it allows them to make real estate deals that otherwise would not have been possible. If this is true, I don't think it's that far fetched to think that AEG would be willing to shell out and extra 4M.

I mean they did spend 55M a few years ago, and I'm sure they knew they weren't going to make any money.

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12-28-2005, 08:49 PM
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I agree, john. They were losing $10-20M in previous years. This year is their best chance in 12 years to have a playoff-successful team and they're letting $4M stand in their way? Like I said, I can understand wanting to break even for the first time in team history, but they're choosing the moment of greatest opportunity to play things the safest. It doesn't make a whole lot of sense, especially considering that they're savvy business men who got rich by taking risks when the best opportunities presented themselves.

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12-28-2005, 09:06 PM
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I think DT will be given the green light by the trade deadline.

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12-29-2005, 12:04 AM
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Quote:
Originally Posted by Osprey
I agree, john. They were losing $10-20M in previous years. This year is their best chance in 12 years to have a playoff-successful team and they're letting $4M stand in their way? Like I said, I can understand wanting to break even for the first time in team history, but they're choosing the moment of greatest opportunity to play things the safest. It doesn't make a whole lot of sense, especially considering that they're savvy business men who got rich by taking risks when the best opportunities presented themselves.
Ding, ding... we have a winner!!!!

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12-29-2005, 12:15 AM
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Originally Posted by ILuvLA
Ding, ding... we have a winner!!!!


I think that DT will make a trade that increases the budget only if a) the Kings are slipping out of the playoff race (since they need to make the playoffs to break even) or b) they can upgrade the team enough to make an advancement to the 2nd round a real possibility (since making the 2nd round means more revenue). It's all about projected earnings, I think.

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Old
12-29-2005, 12:52 AM
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I thought eliminating the "Win at all costs" scenarios was the whole point of losing an entire season. "Cost certainty" was supposed to guarantee fiscal responsibility.

Apparently the Kings are willing to do "whatever it takes" to make a profit this season - and nothing more. There is no excuse why DT wouldn't have the advance approval to make a deal that would significantly improve the team AND stay under the NHL cap without having to run to Leiweke or Anschutz to get their approval. Sometimes these deals have to have a quick decision - look at the reports of Thornton and Chicago as an example.

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12-29-2005, 01:41 AM
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Quote:
Originally Posted by Osprey


I think that DT will make a trade that increases the budget only if a) the Kings are slipping out of the playoff race (since they need to make the playoffs to break even) or b) they can upgrade the team enough to make an advancement to the 2nd round a real possibility (since making the 2nd round means more revenue). It's all about projected earnings, I think.
BINGO!!!!

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