I thought the arena and the team were run as separate entities; if you're taking the cost of servicing the arena's debt into the operating income, would you not also have to take into account all the other revenue sources associated with the arena? I was under the understanding that the arena was a money maker, while the team was not...
I could be way off base as I haven't looked at the numbers though.
Separate entities or not doesn't really effect anything.
Nobody knows whether the arena makes money or the Sens lose money, other Melnyk, his management team and his accountants.
The reason is simple, Senators Sports and Entertainment is a solely owned private company that has no obligation to provide financials other than the data the NHL/NHLPA only requires per the CBA.
So if Melnyk says the Sens lost money we have no choice but to believe him.
My point was if he lost $12M, as was reported by a radio station, a large portion of it would likely be attributed to the servicing of the debt.