Quote:
Originally Posted by Strange Brew
Purchasing a franchise is not revenue. Selling franchise rights is. How are you suggesting an entity accounts for the sale of franchise if not revenue? (hint: it is in the revenue standard).
As for your earlier comment, I have read the definition of HRR and it excludes franchise fees. I am suggesting players will negotiate to broaden the definition.
All revenue in the NHL is the result of playing hockey. If arena sponsorship revenue can be included in HRR, why can't franchise fees?
|
These are one time fees, the expansion fee is not spread out over 10 years like a sponsorship deal or tv rights deal.
Its a one time that's it.
Any one off like this is always excluded from bonuses and things like that. Working for a big corporation and you see your bonus doesn't match with revenues is because they exclude one offs like this.
They can try to negotiate to broaden HRR to include a one time expansion fee but it will be shot down quickly.