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Top Profitable Teams Must Share The Wealth

from Kurt Badenhausen of Forbes, 

The NHL’s problem is the widespread disparity in profits for its 30 teams. We estimated that 18 teams lost money during the 2010-11 season in our annual look at the business of hockey. Several other teams barely eked out a profit, but the league’s most flush teams made a killing. The Toronto Maple Leafs, New York Rangers and Montreal Canadiens had an operating profit (in the sense of earnings before interest, taxes, depreciation and amortization) of $171 million combined. The other 27 NHL teams lost  a collective $44 million. If you add the Vancouver Canucks and Edmonton Oilers to the fat cats ledger, profits hit $212 million with the remaining 25 teams posting a loss of $86 million....

The NHL is not in dire financial straits as it was in 2004 when a lockout caused the cancellation of an entire season. It does need the top teams to share more of the wealth if it wants to be healthier financially. The league currently shares about $150 million of its revenue and the league has proposed bumping that up to $190 million. The players association is looking for revenue sharing closer to $250 million. We know why the Maple Leafs, Rangers and Canadiens do not want that much revenue sharing. What about the other 27 teams?

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Filed in: NHL Teams, NHL Talk, NHLPA, | KK Hockey | Permalink
 

Comments

henrymalredo's avatar

Increased revenue sharing maybe necessary (and is probably the only way to keep some teams on an even playing field in the current system), but the owners have shown little interest in it.  All summer, Bettman and Daly talked about how struggling teams need relief, but as soon as the PA suggested increased revenue sharing, they’ve backed off and have pretty much just said that they want a bigger piece of the pie.

Posted by henrymalredo from Lansing on 09/18/12 at 12:12 PM ET

HockeytownOverhaul's avatar

because Forbes is just making too much sense.  Just adds to the case against ignorant dishonest owners in the NHL and their greedy shill Bettman.

I hope Fehr brings this little ditty to the next meeting.

Posted by HockeytownOverhaul on 09/18/12 at 12:16 PM ET

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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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