Quote:
Originally Posted by longsuffering
2. The Flames are wrong to consider ticket taxes as their revenue in any case. They will not include in their revenues. For the accountants out there, the proceeds from seasons tickets would be recorded as (using $100 as the base price of the ticket with a ticket tax of $15 for a total cost of $115).
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Are you sure on this? Doesn't this break down to gross revenues versus net revenues? The Flames sell a ticket, and that becomes revenue to them, every single dollar. They are expected to collect every dollar, but then deduct associated taxes, which along with business costs, leads to net revenues. This is also why HRR are clearly defined in the CBA, and taxes on tickets are not defined as HRR. Yes, this is one of those semantics arguments, trying to define what "sex" is, but it is the reality of the claim. The collection of the revenue would not exist without the ticket there in the first place, nor the transaction of selling the ticket and collecting the revenue. Just like gas taxes, the retailer has to collect and submit them. They are submitted based on revenues collected, so are part of the gross revenues of the business. Please correct this if any of it is inaccurate.