opie22002 wrote:18 of 30 teams are losing money. Nuff said...
For anyone interested in the calculations, I just ran the numbers reported by Forbes in their The Business of Hockey
list, which were from the 2010-11 season, to see what kind of difference the extra 7% would make.
Under the 57/43 split:
- League-wide revenue was $126.5-million
- 12 teams made a profit
- 6 teams profited by $10-million or more
- 2 teams profited by $5-million or more, but less than $10-million
- 18 teams took losses
- 5 teams took losses of $5-million or less
- 11 teams took losses of $10-million or less, but more than $5-million
- Average revenue was $4.22-million
- Toronto posted the highest operating income - $81.8-million
- Phoenix posted the lowest operating income - loss of $24.4-million
Under a 50/50 split:
- League-wide revenue would be $342.8-million ($216.3-million higher than 57/43)
- 20 teams would make a profit
- 10 teams would profit by $10-million or more
- 5 teams would profit by $5-million or more, but less than $10-million
- 10 teams would take a loss
- 8 teams would take losses of $5-million or less
- 1 teams would take losses of $10-million or less, but more than $5-million
- Average revenue would be $11.43-million
- Toronto would post the highest operating income - $95.3-million ($13.5-million than 57/43)
- Phoenix posted the lowest operating income - loss of $19.5-million ($4.9-million higher than 57/43)
If you were to assume no decline in revenue (holding steady or growing)
then the shift in revenue over the course of 5 years would be $1.08-billion in favour of the owners. Also important to note that the drop in the salary cap ceiling would be approximately $7-million.
The four highest earning teams (Toronto, Montreal, NY Rangers, and Vancouver)
- the only ones to earn over $20-million under the 57/43 split - would be the only teams to see an increase in revenue of $10-million or more.