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National Post Article!- Montreal looks to youth and free agents

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Old
05-08-2006, 08:31 AM
  #1
Firthbird
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National Post Article!- Montreal looks to youth and free agents

Great Article that I found on the National Post.

http://www.canada.com/nationalpost/n...a-1d542fd72a9b

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05-08-2006, 08:36 AM
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Great Article !!! Ty

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05-08-2006, 08:56 AM
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Nice to see them keeping it smart. I hope they stick to the plan and would not mind seeing Kirk Muller as an assistant coach.

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05-08-2006, 09:03 AM
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it's gonna be an interesting summer to say the least

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Old
05-08-2006, 09:12 AM
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Yep, thier are moves comming.

And whats really important is enough roster spots to really change the feel of the club.

Roster spots, money to buy, new kids, trade or trades
Carbo/Gainey have the oppertunity in just one offseason to upgrade and plug holes and also add heart and grit.

4-5 players will be gone, might even be a trade, and some that seem to be 2006-7 players will have to fight off the kids for thier spots.

Gainey paid the price for this oppertunity by NOT going nuts at trade time. Not handing out long term contracts to ordinary players. Getting rid of Theo's contract. NOT trading away prospects.
The Habs made the playoffs but no one in thier right mind saw the 2005-6 Habs as cup contenders.
A first round outing was about right and would have been lucky to get into the second round.

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05-08-2006, 09:14 AM
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I hope that this is not like last season though when everyone was expecting big moves and nothing much came. I think the draft will tell us a lot. If the Habs make a decent move there to save more money a decent free agent or two might be signed. I guess they other important thing is who of our own UFA get signed.

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05-08-2006, 11:15 AM
  #7
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the most telling and positive quote from this article:

"Thanks to the tremendous support from our fans, we have the money to compete with any team," Gainey said.

Gainey would never say this unless Gillette was willing to spend to spend the money he is making.

This tells you that the habs are in strong financial shape contrary to some ideas given out to the public.

I like the way gainey referred to the fans in this quote. He's pretty much saying that as long as the fans keep showing up, the money will be there.

Now, lets use it smartly

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Old
05-08-2006, 11:25 AM
  #8
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Quote:
Originally Posted by Hackett
the most telling and positive quote from this article:

"Thanks to the tremendous support from our fans, we have the money to compete with any team," Gainey said.

Gainey would never say this unless Gillette was willing to spend to spend the money he is making.

This tells you that the habs are in strong financial shape contrary to some ideas given out to the public.

I like the way gainey referred to the fans in this quote. He's pretty much saying that as long as the fans keep showing up, the money will be there.

Now, lets use it smartly
The financial situation of the Canadiens is very good. The team had a 35% net capital gain since Gillette took over. In addition, whatever loss the habs make a year, goes directly as a fiscal loss into Gillette's corporate gains, and thus reduces the taxes he has to spend elsewhere.

People have to understand that George probably WANTS the team to operate as a loss. It could be catastrophic for him if this team made a profit. His other companies would be paying different taxes. And that is why the municipality of Montreal should not reduce its tax burden on the Habs...

Onto the situation on the ice. If Gainey said the team has money to spend, that's fantastic. That means Gillette told him he could say that... great news.

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Old
05-08-2006, 11:27 AM
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Quote:
Originally Posted by aymand
The financial situation of the Canadiens is very good. The team had a 35% net capital gain since Gillette took over. In addition, whatever loss the habs make a year, goes directly as a fiscal loss into Gillette's corporate gains, and thus reduces the taxes he has to spend elsewhere.

People have to understand that George probably WANTS the team to operate as a loss. It could be catastrophic for him if this team made a profit. His other companies would be paying different taxes. And that is why the municipality of Montreal should not reduce its tax burden on the Habs...

Onto the situation on the ice. If Gainey said the team has money to spend, that's fantastic. That means Gillette told him he could say that... great news.

You're obviously much more of a financial expert than I pretend to be

Very interesting post.

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Old
05-08-2006, 12:02 PM
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Quote:
Originally Posted by aymand
The financial situation of the Canadiens is very good. The team had a 35% net capital gain since Gillette took over. In addition, whatever loss the habs make a year, goes directly as a fiscal loss into Gillette's corporate gains, and thus reduces the taxes he has to spend elsewhere.

People have to understand that George probably WANTS the team to operate as a loss. It could be catastrophic for him if this team made a profit. His other companies would be paying different taxes. And that is why the municipality of Montreal should not reduce its tax burden on the Habs...

Onto the situation on the ice. If Gainey said the team has money to spend, that's fantastic. That means Gillette told him he could say that... great news.
Offsetting his other operations with, say, a $5-10M loss each year, wouldn't help him that much, and making a $5-10M profit shouldn't be catastrophic. After all, he could devote the entire profit to paying his tax bill.

If I were Gillett I would prefer selling the team and realizing a long-term capital gain to incurring losses. Ideally, I would have the buyer pay me over a period of years so that the capital gains would be annualized.

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Old
05-08-2006, 12:12 PM
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Hey aymand, where did you get the financial info?

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Old
05-08-2006, 12:13 PM
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Quote:
Originally Posted by Teufelsdreck
Offsetting his other operations with, say, a $5-10M loss each year, wouldn't help him that much, and making a $5-10M profit shouldn't be catastrophic. After all, he could devote the entire profit to paying his tax bill.

If I were Gillett I would prefer selling the team and realizing a long-term capital gain to incurring losses. Ideally, I would have the buyer pay me over a period of years so that the capital gains would be annualized.
Agreed, no catastropy, but he's a wise businessman and I was trying to pre-empt the comments about the team being too heavily taxed in Montreal.

You're right, If I were Gillett, I would sell the team as well. But not to evade losses. The yearly operating losses of the team are greatly offset by the gain in the team,s worth as well as the other associated activites. (GEG and the BELL Centre) The team, the arena and the Entertainment group have all gained in value since he took over.

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05-08-2006, 12:17 PM
  #13
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Quote:
Originally Posted by sYn
Hey aymand, where did you get the financial info?
I was at the GALA Arista de la Jeune Chambre de Commerce de Montreal. And the Journal les Affaires's front page was about Gillett. And I got to talk with some of the research guys for the article

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Old
05-08-2006, 12:21 PM
  #14
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Quote:
Originally Posted by aymand
I was at the GALA Arista de la Jeune Chambre de Commerce de Montreal. And the Journal les Affaires's front page was about Gillett. And I got to talk with some of the research guys for the article
Very good thank you .
I was looking for financial reports but I wasn't able to find them... Probably because there's no public way to buy shares from this corp

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Old
05-08-2006, 12:28 PM
  #15
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Quote:
Originally Posted by sYn
Very good thank you .
I was looking for financial reports but I wasn't able to find them... Probably because there's no public way to buy shares from this corp
I don't think its a publicly traded corporation.

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Old
05-08-2006, 12:37 PM
  #16
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Quote:
Originally Posted by aymand
The financial situation of the Canadiens is very good. The team had a 35% net capital gain since Gillette took over. In addition, whatever loss the habs make a year, goes directly as a fiscal loss into Gillette's corporate gains, and thus reduces the taxes he has to spend elsewhere.

People have to understand that George probably WANTS the team to operate as a loss. It could be catastrophic for him if this team made a profit. His other companies would be paying different taxes. And that is why the municipality of Montreal should not reduce its tax burden on the Habs...

Onto the situation on the ice. If Gainey said the team has money to spend, that's fantastic. That means Gillette told him he could say that... great news.
The 35% capital gain wont mean much because the only way that can be realized is if you actually sell the franchise....

The losses that are attributed to the Canadiens would only happen as a matter of accounting allocations.... Gillet probably is shifting more of the lease expense for the Bell Center to the Habs and less to his entertainment group.... however if you look at it on the whole, it would make no difference whether you reported more of a gain in the Entertainment group and less in the Habs because both of these companies (if they aren't already consolidated) earn more than 300k in profit, which is the amount at which corporate taxes are at about 20%.... if you make 301k you are paying about 35% There is no point in allocating profits between companies, a loss in one would generate a refund, but a higher gain would result in more taxes to pay.... the difference would be the same as if you did not allocate your income at all to begin with.... the only way you could make this strategy work is if you could somehow find a way to shrink the Habs NI to below the small business deduction.... but that would bring you a savings of only 300k*0.2 = 60k.... not much to work with really.....

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05-08-2006, 12:52 PM
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Sort of off-topic to the thread, but whatever.

Best part of the article:

Quote:
The former Canadiens captain said he is hoping to promote the same aggressive style the team showed in the latter stages of the season.

"When we have the puck, we want to attack the net and when we don't have it, we want to work hard to get it back," Carbonneau said.
Thank you Guy. This is the new wave of the NHL. Fits our team perfectly. Just get rid of some of the softies and get a couple big, legitimate top-6 players, who can score and forecheck.

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Old
05-08-2006, 12:59 PM
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I wonder if kostitsyn is carbonneau type... I hope he impress carbo enough to make the team. Just like any players. They have to deserve a spot.

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Old
05-08-2006, 01:02 PM
  #19
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Quote:
Originally Posted by Sam Losco
Sort of off-topic to the thread, but whatever.

Best part of the article:



Thank you Guy. This is the new wave of the NHL. Fits our team perfectly. Just get rid of some of the softies and get a couple big, legitimate top-6 players, who can score and forecheck.
Elias

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Old
05-08-2006, 01:14 PM
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Quote:
Originally Posted by Anthony P
The 35% capital gain wont mean much because the only way that can be realized is if you actually sell the franchise....

The losses that are attributed to the Canadiens would only happen as a matter of accounting allocations.... Gillet probably is shifting more of the lease expense for the Bell Center to the Habs and less to his entertainment group.... however if you look at it on the whole, it would make no difference whether you reported more of a gain in the Entertainment group and less in the Habs because both of these companies (if they aren't already consolidated) earn more than 300k in profit, which is the amount at which corporate taxes are at about 20%.... if you make 301k you are paying about 35% There is no point in allocating profits between companies, a loss in one would generate a refund, but a higher gain would result in more taxes to pay.... the difference would be the same as if you did not allocate your income at all to begin with.... the only way you could make this strategy work is if you could somehow find a way to shrink the Habs NI to below the small business deduction.... but that would bring you a savings of only 300k*0.2 = 60k.... not much to work with really.....
\
Money in the bank is an asset but of no use unless you spend it. Ridiculous argument.

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05-08-2006, 01:20 PM
  #21
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Quote:
Originally Posted by aymand

People have to understand that George probably WANTS the team to operate as a loss. It could be catastrophic for him if this team made a profit. His other companies would be paying different taxes. And that is why the municipality of Montreal should not reduce its tax burden on the Habs...
That is probably the most ridiculous comment every made on this board!!

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05-08-2006, 01:35 PM
  #22
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Quote:
Originally Posted by briste
That is probably the most ridiculous comment every made on this board!!
I have to agree... I'm not impressed by the Banana on this comment

Maybe he doesn't want to make profits, but he can spend the money elsewhere if he doesn't pay it in taxes...

High taxes are never a good thing for the guy that pays them IMHO.

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05-08-2006, 01:38 PM
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Quote:
Originally Posted by briste
That is probably the most ridiculous comment every made on this board!!
You're in way over your head. Check some of my posts and you'll see what I mean.

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Old
05-08-2006, 03:03 PM
  #24
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Quote:
Originally Posted by briste
That is probably the most ridiculous comment every made on this board!!
Really.. that much? have you listened to some of the hockey talk here?

No but seriously..

I work with companies that operate at a loss by choice.. its a common business practice. Doesn't mean the company isn't financially stable.

Gillett owns many corporations. Some in Q most not. His entire empire is probably operating with a huge profit. But if some of his businesses are oprating at a loss. This is not a problem.

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05-08-2006, 03:30 PM
  #25
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Quote:
Originally Posted by aymand
Really.. that much? have you listened to some of the hockey talk here?

No but seriously..

I work with companies that operate at a loss by choice.. its a common business practice. Doesn't mean the company isn't financially stable.

Gillett owns many corporations. Some in Q most not. His entire empire is probably operating with a huge profit. But if some of his businesses are oprating at a loss. This is not a problem.
Your hypothesis neglects one important variable: the opportunity for a large capital gain. Why sustain operating losses and then sell the property years later on? If the losses persist for a long time, the property will inevitably depreciate in value. If the property is profitable, the ultimate sale price will be higher. There are more buyers for profitable operations than there are for tax writeoffs.

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