is the NHL the new Enron

Discussion in 'Fugu's Business of Hockey Forum' started by Mr Sakich, Jun 29, 2006.

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  1. Mr Sakich

    Mr Sakich Registered User

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    not sure if their rosy numbers make sense. Advertising and TV revenues have to be down yet the cap is going up. Everyone has a smile on their faces. I think it may be a sham and here is why

    total revenue is measured in US dollars. There are 30 teams of which 24 are US based. There are 6 Canadian teams. Total revenue for those 6 Canadian teams is actual Canadian dollar revenue gerated multiplied by the US currency exchange rate.

    total revenue = 24 US teams revenue + 6 Canadian team revenues

    total revenue = 24 US team revenues + 6 Canadian teams actual times exchange rate

    I am too lazy to look up the actual numbers but can someone fill in the blanks? I would alsmost bet that the entire increase in revenue is due to the stronger Canadian dollar and actual revenues declined.

    Why is this important? The cap in 2008-9 may be lower than next years just because the Canadian dollar may not rise anymore.
     
  2. Irish Blues

    Irish Blues Present once again

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    Is NHL a publically traded company on the NYSE or NASDAQ?
    Do tens of thousands of people working for the NHL have their retirement tied up in NHL stock?
    Do tens of thousands of other people have investments in NHL stock as part of their stock portfolios?
    Does the NHL operate without a tangible asset which can be easily identified?
    Is the NHL engaging in a series of transactions prohibited by the SEC?


    No?

    Then any attempt to compare the NHL to Enron isn't just silly, laughable, absurd, ridiculous, woefully inaccurate, ...
     
  3. joshjull

    joshjull Moderator

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    Actually the cap numbers for this year were base on a conservative guess as to what revenues would be this year. The NHL used about 1.8billion as the guess. The actuall revenue was 2.1 billion so the cap goes up. To put in perspective the revenue amount is a little more than the year prior to the lockout, which had revenues I believ around 2bil. So basically revenues just went back to pre-lockout levels. All things considered that is something to smile about.
     
  4. GSC2k2*

    GSC2k2* Guest

    I answered this in a thread on Tom Benjamin's website a while back. EVen assuming his absurdly high revenue figures of US$650 million for the six Canadian teams, the difference attributed to the elevated Canadian dollar would be around $85-95 million. Of course, that would be reduced by probable dollar hedging activities of the Canadian teams, unless they were lucky enough to guess right on their hedges 100% of the time.
     
  5. Bear of Bad News

    Bear of Bad News HFBoards Escape Goat

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    Any comparisons of the NHL to Enron is obviously part of a "dumbest thread" competition.
     
  6. taunting canadian

    taunting canadian Registered User

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    So what? That's the entire point of revenue linkage - so that the cap number reflects the revenue, and the owners have cost certainty, whatever may happen to the underlying business (including currency fluctuation, if that turns out to be important). Nobody said the cap has to rise every year. Not seeing how this is anything like an Enron situation.
     
  7. Jaded-Fan

    Jaded-Fan Registered User

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    Yes. You have exposed the owners' devious plan. Wrongly report the income so that they can pay the players millions upon millions more next year. Brilliant. Enron's executives would be envious at how the owers lined their pockets this way.
     
  8. Galchenkel

    Galchenkel Registered User

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    can somone explain what Eron is/was? it appears it was a kind of company which failed due to high canadien dollar value i guess...? :dunno:
     
  9. Brent Burns Beard

    Brent Burns Beard DontTouchMyDonskoi!

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    i think my sarcasm meter is not working ....

    seriously?
     
  10. Flash Walken

    Flash Walken Registered User

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    this thread should be locked.
     
  11. Wetcoaster

    Wetcoaster Guest

    OTOH it may be that the NHL was much healthier to begin with than it tried to portray itself with the work of fiction authored by Arthur Levitt.

    The figures from Forbes and the NHLPA seem much more realistic in hindsight than the gloom and doom being peddled by Bettman and Co.
     
  12. DeputyDan

    DeputyDan Registered User

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    No the NHL is not the new Enron and

    If you don't know what Enron is you should be to embarassed to admit it on the net.
     
  13. garypl

    garypl Registered User

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    well, maybe the NHL should be compared to Iran then......one of the dumbest topics ever on here
     
  14. ranold26

    ranold26 Tuukka likes the post...

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    thread author = likely a trendy communicator.

    Next thread likely: OMG B3ttm4n 1s t3h Naz1!!!!!!111. N0 h0ck3y f0r OIL!!1
     
  15. GSC2k2*

    GSC2k2* Guest

    The NHLPA admitted the essential veracity of the NHL's numbers.

    Quit trying to re-write history. It's done. The NHLPA was wrong. Give it up.
     
  16. Galchenkel

    Galchenkel Registered User

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    yes i'm serious. i'm not that good in english, neither i am in overall north american culture, 'cause if i was i guess i'd be supposed to know what Eron is... :dunno:
     
  17. discostu

    discostu Registered User

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    Enron is one of the biggest financial collapses in history, and biggest cases of accounting fraud. A quick google search will tell you everything you need to know about it. In short, it was a massive case of fraud, and any comparison of the NHL's dealings to Enron is an incredibly bad analogy.
     
  18. Tripwyre

    Tripwyre Registered User

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    Gary Bettman wants to control and sell.........the weather. :eek:
     
  19. Sens Rule

    Sens Rule Registered User

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    For the NHL to be like Enron the NHL would have to actually PRETEND that there were like 60 more teams in the NHL and that they were selling out all their games.

    It would be pretty obvious that the NHL couldn't do that......

    Really it makes no sense to even compare the 2. Enron conned hundreds of thousands or millions of shareholders because most if not all of the shareholders had no idea what was going on. The NHL essentially has 30 shareholders in each team. They can't really con each other as everyone knows what is going on?
     
  20. Mr Sakich

    Mr Sakich Registered User

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    I am the author of the thread and , no, I am not a trendy communicator???

    anyways, the point I was trying to make was - the NHL is trying to portray itself as being in a rosy financial position. Bettman is saying " see, our cap is up to 44 mill, look how wonderfull things are"

    Enron convinced many people to invest in their shares using the same approach. My question was simply " despite the rising cap, is the NHL in a healthy financial position moving forward? Were there temporary circumstances (ie - rising value of the canadian dollar) that are not giving us a true picture of the state of the game?

    As far as the NHL re-creating the finaincial shenannigans that Enron did, most of us are aware of the new Sarbane / Oxley rules and their effect on GAAP. There will not be another Enron without a lot of people going to jail. My intent was not to imply law breaking, just a rose coloured view of the future by the NHL brass.
     
  21. Irish Blues

    Irish Blues Present once again

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    Then even you realize that it was completely absurd to compare the two, since there's no comparison.

    If you wanted to ask, "Is the NHL really as financially strong as it says it is?", fine - that's a valid question. Drawing the analogy to Enron is kind of like drawing a line between some guy arrested for taking a street sign and Ted Bundy. Sure, they both broke the law ... but to link a petty offense and a serial killer is inflammatory.
     
  22. rwilson99

    rwilson99 Registered User

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    Too lazy to look up the numbers. But not lazy enough to engage in hyperole.

    Enron executives were convicted for accounting abuses, such accounting abuses would actually run counter to the interests of the owners.

    Disgraceful post... not different that posting rumours about player x is on steroids and player y cheats on his wife... no facts just speculation of a crime being committed.
     
  23. grego

    grego Registered User

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    If you are correct and the NHL sees a drop with the dollar in Canada going down some day in the future, it will correct.

    There is a link between revenue and the cap, so if the revenue drops so does the salary cap. And this will make the NHL healthy, because payroll can not be be increasing if revenue isn't increasing.
     
  24. GKJ

    GKJ Global Moderator

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    You know what, this is so ridiculous, that it gave me a better idea....
     
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