Quote:
Originally Posted by calumniate
Yikes!! For a loss leader to work, you need something else to be working for you. This is a hockey club and nothing else. Do you mean to say that losing money at hockey will help them develop a new ipad or something?
|
This isn't that complicated. Look at Resolute's post. The losses/low revenues of the Coyotes decrease costs on average for the other teams. As he also pointed out this isn't a long term thing, but for the short term it hasn't had the negative financial impacts on the NHL or its constituent owners that people pretend it has.
And I'm not sure where you get the idea that a loss leader has to be some sort of R&D or like type thing, it could be done strictly for tax purposes.