Quote:
Originally Posted by Cleveland Steam Whistle
The operating income for the Flames is available online if you search it. Since 2006, the Flames have rarely lost money, but most of their seasons, the profits are meaningless (a few million dollars) with a handful of seasons making a solid profit.
Problem is the trade off for any business person. If you were to look at the average return on investment for the ownership group when you see the profits vs what it cost to operate (so their investment in the club) it’s not worth it. Edward’s would be far better off putting the money he puts into the Flames elsewhere if he’s in it to make money. People seem to think making any money on the Flames means profit, they fail to recognize that the actual decision on any business a could I make more investing this elsewhere.
Profit is not why Edward’s does this. I won’t pretend to know why he does. Some sort of tax break, ego, hobby or he wants to give back to Calgary, something else, combo of the former? What I do know is investing your money in the “Flames” is not your best investment opportunity, in fact it appears to have sucked historically. If I was given the opportunities to invest my measly RRSP accounts in the Flames I wouldn’t, cause the return would have working until I’m dead.
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I definitely agree with everything you wrote, especially as I know that it comes as the argument against 'playoff revenue' being the most important component side of the argument. I believe that Edwards wants to win a cup. Full-stop. I imagine all the owners do.
However, the rise of valuation of sports teams in general makes the Flames an EXCELLENT investment. It won't be too long before the Flames themselves are worth a billion dollars. That's quite a nice return in itself.