Further, let's dive into the term "Direct Costs", as is defined by the CBA:
"Direct Costs" shall mean any costs, including fixed and variable costs, attributable to a revenue-generating activity. For example, the salary of an individual employed by a Club or Club Affiliated Entity whose duties contribute to revenue activities specified in this Article 50 may be apportioned among such revenue activities specified in this Article 50 as a Direct Cost to the extent such netting of Direct Costs is permitted, except that no portion of the salary of an individual who, in the ordinary course, works on any non-revenue generating activity of a Club or Club Affiliated Entity, as defined herein, may be included as a Direct Cost. Further, an allocation of arena occupancy costs, and general and administration expenses, such as finance, support and general management function costs, may not be included as Direct Costs.
So, things to highlight here:
1) the straight definition - "any costs, including fixed and variable costs, attributable to a revenue generating activity". Basically, how much money you spent trying to make money. All of your expenses in running the organization from a hockey-specific standpoint.
2) the caveat - "no portion of the salary of an individual who, in the ordinary course, works on any non-revenue generating activity of a Club (etc...) may be included as a Direct cost" Basically, you can't charge Labor that wasn't involved in league business as a Direct Cost. So the GM's salary is a hockey cost, that's a Direct Cost... but the Arena Manager, for example, is employed by Melnyk the Arena Owner, not Melnyk the Senators Owner, so that cost wouldn't be included in Direct Costs
3) The Hammer Drops - an allocation of arena occupancy costs, and general and administration expenses, such as finance, support and general management function costs, may not be included as Direct Costs.
... wait what was that last part?
"arena occupancy costs... may not be included as Direct Costs"
... hold on, let me go back and re-read that last part...
"arena occupancy costs... may not be included as Direct Costs"
Soo... explain to me again what your argument here is, Prof. QuotesTheCBA?