How far were we from the salary cap when this 31mil was calculated? Just curious if we were a competitive tram that capped out 31mil goes fast.
So the Wings made 31 mil, and I've seen it reported that Little Caesar's has done pretty well during quarantine. Maybe the Ilitches are doing alright.
How far were we from the salary cap when this 31mil was calculated? Just curious if we were a competitive tram that capped out 31mil goes fast.
Wings were pretty much capped out last year. They had 1.5 million of space.
If you think about all the costs of owning a hockey team the profit margin is actually very slim I’d imagine. You gotta like hockey because it’s not a great business. Most businesses carry a 30% margin at minimum. I’d bet they are working with less than half that, and they are one of the highest. Yikes.
Guess I should read the article lolRed Wings were 24,6%. So not anywhere near that bad.
31M profit of 157M Revenue.
The Business Of Hockey
Caphits were high yeah, but Zetterberg and Franzen contracts were there total of 10M and only 2 in real money.
If you think about all the costs of owning a hockey team the profit margin is actually very slim I’d imagine. You gotta like hockey because it’s not a great business. Most businesses carry a 30% margin at minimum. I’d bet they are working with less than half that, and they are one of the highest. Yikes.
I have to think the real value is as some sort of tax and banking assets. Something to help a larger entity (like Ilitch Holdings) move money around and massage their numbers a bit, something to borrow against, etc. And bragging rights, at least for the old man.
Yeah I’m less knowledgeable in those aspects of business. That’s big business stuff lolI have to think the real value is as some sort of tax and banking assets. Something to help a larger entity (like Ilitch Holdings) move money around and massage their numbers a bit, something to borrow against, etc. And bragging rights, at least for the old man.
They played 85% of the season with arena attendance. The issue for this season is that they will be playing without any gate receipts since there will be no fans in attendance. They can't charge for season tickets either....NHL Team Values 2020: Hockey’s First Decline In Two Decades
There it is.
Only 5 teams made a better result.
+31M no matter what happens on the ice.
Does Chris Ilitch need to be scared about losing money? Doesn't look like that.
$31M for the season.... and they didn't even play all of the games.How far were we from the salary cap when this 31mil was calculated? Just curious if we were a competitive tram that capped out 31mil goes fast.
They really need to move that team to Quebec. The NHL doesn;t need 2 teams in teh desert.Trash ass Arizona Coyotes.
They really need to move that team to Quebec. The NHL doesn;t need 2 teams in teh desert.
They played 85% of the season with arena attendance. The issue for this season is that they will be playing without any gate receipts since there will be no fans in attendance. They can't charge for season tickets either....
So how much do they make off of arena attendance? This article says $60M
Detroit Red Wings on the Forbes The Business of Hockey List
All things being equal, and having around $10M less in actual salary, they stand to lose about $20M this season or more depending on how the TV contracts (national and local) are worded.
Chris isn't in the business to lose money. That being said, it looks like he'll recover his losses as soon as arenas open up again.
If you think about all the costs of owning a hockey team the profit margin is actually very slim I’d imagine. You gotta like hockey because it’s not a great business. Most businesses carry a 30% margin at minimum. I’d bet they are working with less than half that, and they are one of the highest. Yikes.
If you think about all the costs of owning a hockey team the profit margin is actually very slim I’d imagine. You gotta like hockey because it’s not a great business. Most businesses carry a 30% margin at minimum. I’d bet they are working with less than half that, and they are one of the highest. Yikes.
It's not really a tax write off so much as just a reduction of overall profits since they are owned by the same holding company.This year would be a tax write off year for illitch holdings/little caesar's.