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Leonsis Disputes Forbes Report

from the Washington Times: Ted Leonsis admits that the lockout really was about franchise equity while disputing Forbes' assertion that the Caps made money last year:
"We lost $6 million last year, with revenue sharing," he said. "That is inaccurate. They said we were going to make money this year, and we're going to lose money. They said we are worth $125 million, and we are probably worth $180 million. I read it, and you just go. "They weren't close on the numbers," Leonsis continued. "Our revenues are higher, we're losing money ... we did not make a profit. If you do the math, it is like losing $15 million, and then you get $10 million revenue sharing."
"We are a couple of million dollars away [from making money] in ticket sales, and the burning off of Jaromir Jagr's contract, and then we are at break even," Leonsis said. "Then, if you make the playoffs, then you can really start to make some profit. We are a couple of years away from that. "The goal is to have the asset appreciate more than you are losing money," he said. "That wasn't happening pre-lockout. You would lose $30 million and the team would appreciate $5 million. Now if you are losing $4 million or $5 million or breaking even, your team is appreciating. The rule of thumb is you should double your asset value every seven to 10 years. So right now the Wizards are probably double their value in the last 10 years, with a new CBA and stability. We have a better CBA in the NHL. So we think team values will increase dramatically. So we are really happy. This is the most relaxed I've been since I've been in the league."

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Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.

From breaking news to in-depth stories around the league, KK Hockey is updated with fresh stories all day long and will bring you the latest news as quickly as possible.

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