Micklebot
Moderator
- Apr 27, 2010
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The Forbes numbers show the value of the Senators, not profit or losses per season.
Cyril Leeder went on the record, a number of times, stating that the Senators lost $94 million in the first ten years (2003-13) since Melnyk bought the team.
In Melnyk’s first ten years of owning the Senators franchise, in an interview with the Citizen, Cyril Leeder claimed the Senators Franchise had only generated about $6 million on operations..........................that is, total revenues minus the costs associated with paying and moving the players, advertising and managing the arena.
Forbes numbers just show the value, and like the value of my house, I can only borrow against it, not claim it a profit.
To be clear, Forbes has estimates on far more than just the teams valuation; they use estimates on revenue, operating income, and a host of other things to come up with their valuations.
Now, for the Sens to have lost the 94 mil over 10 year to make any sense, I suspect they would be ignoring any of the arena's profits, which while perfectly legal, and accurate, is entirely disingenuous if the point you're trying to make is you've lost a bunch of money as a result of owning the sens, since they are a package deal and he wouldn't have one without the other.
All this, of course, has already been pointed out ad nauseum, but here we are I guess...
What is fair to say though, is that the operating income is not profit (JD1 has correctly pointed this out, again, ad nauseum), as interest, taxes, depreciation and amortization aren't included. So, while Forbes estimates something like 80 mil over the last 10 years in operating income (for the team and arena combined), the actual profit would likely be less (I suppose it could be more if the team invested in bitcoin back in 2009 or something).