Article from ESPN (Link in thread above) says that an auditor found that the NHL lost a combined $273 million last year. While few teams made money, some broke even, but 19 out of 30 lost money.....That's an average loss of $9.1 million per team...IN ONE YEAR!
This is adding further fuel to the proverbial fire concerning the NHL's case. I do not expect to see hockey next season....remember the Pens article on how they will be OK financially with no hockey next year....Wasn't it the Tampa Bay Lightning owner who said he would actually be better off financially if there was no hockey next year (Lose $10 million less I beleive).......A lost season looks more and more likely!
You can bet they will attempt to say the report is an inside job done just to help the NHLs case.
Does anybody remember how much the Penguins lost last season? It was less than $5mill right?
There is talk that the report is going to be made public. If it is, The new S/O legislation shoul prevent any of the data from being intentionally falsified. In turn, I hope it is made public. The NHLPA will have no conclusive way of combating the report.
The Pens just about broke even last year. They were projecting worst case scenario of losses between 1-2 million. I don't beleive they released actual profit/loss data....Did anyone see anything other than estimates?
No, but I do seem to remember after the Kovy deal the talk was that we were going to lose less than $5 mil., which is going to be about the same case this year I think.
So really, we aren't in that bad of shape. I don't understand how theirs teams that can lose over 20-30 million dollars, and still spend money. I give credit to the Pens for spending wisely(which, I guess they were forced to do so because of bankruptcy). It's hard to see, but in a few years, we should be in better shape than some of these other teams.
There are always different viewpoints in regard to these type "audits" . . . mostly from what things were included and what things were not included. Some teams pay rent to a corporate group, that is also them. Having the audit just look at the pure hockey operations, this guys figures could be very accurate. But also not present the real picture.
That is why the NHLPA should question the numbers . . . let alone the owners had their own guy come up with the numbers. Numbers get hidden (legally and sometimes illegally) in multilevel corporations.
Are the player's salaries beyond belief? Sure they are, and the owners ridiculous decisions to pay these salaries have worked there way down to the fans. Not only have the owners made the game more boring every year they have charged more money to go see it. The game, as played today, isn't worth anything because they can't get a viewing audience on TV or at the game that can make ends meet+ unless the team is winning. In some cities winning doesn't make the difference, either.
I've come to the point where I really don't care anymore. Work it out or don't work it out. It doesn't much matter. They sure don't give a hoot about what we pay for tickets (neither the owners or the fans) and now the TV market has shrunk to the size of pool and bowling and is even being outdrawn by The World Poker Tour.
The owners want to blame the players and the players want to blame the owners. Did you notice that just like in the last lockout the only "flicker" of care thrown the fans way is that a couple of them saying, this is really hurting the fans. The bottom line is that there are places like in Toronto, who haven't seen a great hockey team in some of their lives . . . but would pay the same amount to watch cockroaches play hockey if they could put a Leaf's sweater on them. Most other places want some value for their dollar.
When you take an average player who is a FA and he gets into a bidding war with three or four teams . . . this becomes all about the owners greed. Instead of them all telling the player to buzz-off and let him sign for 1/3 what he was asking . . . one of the stupid, the most stupid owner signs him. Look at Jagr getting his $11 million; Lang getting a 5-year $25 million contract. Hasek maybe playing Detroit for his money.
Bure, Modano, Leclair, Sundin, Tkachuk, Jagr, Stevens, Allison, Yashin (that's off the top of my head) and I'd bet all ofthem are in the top 15 in salaries. Think about it, it's a joke and the owners caused the joke and raised the ticket prices (screwing the fan) to cover their losses.
IMHO, the owners locked the players out in the last stoppage. Not the players. The owner's are the ones responsible for the current situation. They kept the players in the dark-age salary-wise for years before the last lockout. That shouldn't mean much in today's situation but . . . the owners are the ones who screwed with the older player's pension funds too. Ask some of the older players how great their pennons are! It's a joke.
What this group of owners are made up of are
(a) the incredibly incompetent,
(b) theold people who main goal is to crush the NHLPA,
(c) liars, and
(d) rich people who have made this their personal playstation.
None of us really know what's going on except what affects us personally. The price of the tickets and the boring way the game is played..
TORONTO - Bob Goodenow, NHLPA Executive Director, had the following comments in response to the League commissioned report by Arthur Levitt:
"We understand the Levitt report took 12 months and thousands of hours to complete. Because we received the report from the League late this morning, it will take more than a couple of hours of review to fully comment. Selected media outlets received this report days before us, which speaks volumes about its intended audience. Without a detailed review of all the underlying documents one can only make preliminary comments on the report:
1. The owners and their commissioner Gary Bettman have obviously found it necessary to retain a new spokesman/consultant to provide general conclusions about League finances while still not disclosing any individual team information or providing an opportunity to examine the actual records upon which the conclusions are allegedly based.
2. We understand that 12 months ago, Levitt was retained by the League's commissioner through two New York City based law firms. The League did not advise the NHLPA of this initiative and there has been no discussion of it by the parties, even though we had many discussions of issues flowing from the URO process during the substantive economic discussions and collective bargaining sessions we have had over the last 12 months. Against this background, it is clear the Levitt report is simply another League public relations initiative. To suggest the report is in any way independent is misleading.
3. We have consistently stated that one critical issue of disagreement between the NHLPA and the League on finances is how to define the complete business of owning an NHL franchise, and how to address the significant inconsistencies contained in the NHL's voluntary and unaudited URO reporting process. At the outset it is clear the Levitt report, commissioned by the League, is fundamentally flawed when the author "elects" to define hockey revenues on the same basis as used in the NBA and NFL for defining revenues in their salary cap systems.
4. We were given access to the UROs for 30 clubs, but were only able to conduct a thorough review of four NHL clubs. On those four clubs alone we found just over $52 million in hockey related revenues and benefits not reported in the League's voluntary and unaudited URO process. If we are given similar access to all of the other individual teams' financial information, presumably used in the Levitt report, we will be in a position to provide further comment.
We continue to believe that a market system, not a team of hired-gun accountants, provides the best measure of the value of the hockey business. In a market system, the owner decides how much to pay the players. The owner knows the value of his business better than any paid consultant or league employee and the owner uses this knowledge when he sets player salaries. In our view, there is no better indicator of the true value of the players and the business."