Quote:
Originally Posted by theslymonkey
I think you're making assumptions that are not reality.
HRR is still HRR. The extra games doesn't mean the players don't get paid. They're salary is set for the year and just because they have a contract doesn't mean they actually get all of it. It all comes down to the HRR pot.
But take that out for a minute. I don't think my numbers are far off. The revenue can't sustain the margins you are suggesting.
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Ok. Fair enough. In the simplest terms, let’s assume all else is equal
We know the team turns a profit over the regular season, right?
Assume they break even per game when the gate is X
Assume playoff games have the same cost base as regular season games
Now for the playoffs if the gate is X plus Y, then Y would be profit
Based on minimal ticket price increases people have mentioned, isn’t Y at least 60%?
So if playoff gate is 5 M like you say, incremental profit would be ~1.9
Fair enough