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Originally Posted by iggy_oi
I should have worded my last post better. The $775M in profits is after taxes, the $1B figure was a rough estimate of how much revenue the owners pay tax on. If I recall that link had those teams posting an operating loss prior to revenue/profit sharing among the teams being taken into account.
How are you defining pretty bad spot? $1M in losses? $10M?
You seem pretty certain the league will lose a lot of money no matter what, but without an idea of how much it will cost to run the season I’m trying to get an understanding of how you’ve come to that conclusion. While the league certainly won’t be making profits like last season, if the cost of runing the season drops from $4B to under $3B it’s plausible for the league to break even if their previous non gate revenue was over $3B.
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The methodology says net of revenue sharing
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Methodology: Revenue and operating income are for the 2018-19 season, include postseason and applicable non-NHL arena revenue, and are net of revenue sharing and arena debt service. All figures are in U.S. dollars based on average exchange rate during 2017-18 season.
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This is going to need a spreadsheet at some point.
But if you have say 50% of your revenue from game receipt etc, .... which goes to zero, and 45% of your revenue from tv revenue that gets heaving prorated down (by 30% at least) ... you have $2.5B x 0 + $2.0B x 70% you have $1.4B + whatever they hang onto that doesn't get prorated ... somewhere around $1.8B.
The cap is $81.5M, but teams don't all spend to it ... so lets say $79M x 31 teams ... that's $1.8B.
So to break even the league would have to have no other costs at all ... which isn't right.
Seems like a pretty tough go to me.