Question and/or Clarification

Discussion in 'The Business of Hockey' started by SedinFan*, Jun 30, 2005.

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  1. SedinFan*

    SedinFan* Guest

    Looking at a team such as Calgary or Edmonton, what happens if league revenues go up to say 3 billion, so that'll bring the cap number up to say 40-45 million, how would the Flames/Oilers/small market teams be able to compete with teams that have 40-45 million dollar payrolls.

    Clarify 54% linkage. Anyone?
     
  2. sparr0w

    sparr0w Registered User

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    Revenue sharing. If the league revenues get that high there will be a lot of money going around as well as hopefully a big fat tv deal.
     
  3. WC Handy*

    WC Handy* Guest

    Your question insinuates that somehow the revenues of Calgary and Edmonton are going to remain the same while the rest of the league's revenues increases when in all likelihood if the league revenues increase by ~50% to $3B then the revenues of Calgary and Edmonton will increase by roughly the same percentage, give or take 10%.

    That, combine with revenue sharing, is how they'll compete.
     
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