Quote:
Originally Posted by Notorious Honey Badger
This is akin to someone getting a paycut at work and losing 10k a year in salary but saving a couple thousand on taxes and being thrilled.
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Not quite. The Coyotes lost $37 million in 2010-11. The City paid $25 million, leaving the other 29 owners to cover about $413k each. An overall increase in revenue of about $22.5 million is all it would take to cause the salary midpoint to rise by $413k. If the Coyotes are making $70 million a year in revenue (according to Forbes), do you think Quebec City would be able to make $92.5 million?
Now, at $413k per team, we are not exactly talking about a large burden to begin with, but it is also completely offset by the drag on the cap. Thus, there is no great incentive for the owners to rush out of the market. But with nobody subsidizing the losses, each team's bottom line will be hit for over three times that amount. Still chump change to a billionaire, but passing the point where it is more prudent financially to deal with the increase in the salary cap that a relocation would cause.