Quote:
Originally Posted by dying4acup
Based on the ticket sales, projected merchandise sales, and primarily the fact that the biggest television contact in the region being based around the LV 51s AAA baseball team, I'm quite sure that if the league expands, they will gain AT LEAST, league average revenue.
If not, why bother?
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I think they will reach that too, especially in the first year; but this is something the union and the league would have to negotiate before announcing expansion. But keep in mind average revenue doesn't mean at least middle of the pack, it would have to be the average in dollars as the 7 Canadian teams generate 35-40% of HRR for the league. So that would mean Vegas would need to be among the very best in American teams at generating HRR.
As for why bother? Revenue is revenue, the league will pay the players 50% of revenue regardless, so more revenue is more money and the expansion fee sure doesn't hurt.
But I don't want to get into the merits of Vegas as an expansion city, I am curious how they will calculate the cap when expanding since the midpoint to set the cap is 50% of HRR divided by 30. If they divide by 31 instead the cap would very likely drop unless the Canadian dollar bounces back next season.