Sharks face deficit; ticket prices to be raised again

[AdmiralPred]

These were old tactics that teams frequently used, and probably the biggest reason why the lockout took as long as it did.

The new CBA has defined exactly what revenue is and is not, and for better or worse they've closed a great many of these accounting loopholes.

Yes, indeed, it's a sad day for all bean counters.

Never, the more the rules change, the more their services are needed so long as there are businesses to report.

 

[Tinordi24*]

Its real easy to begrudge others who try to make money.

Its their team and its business. Business needs to be run at a profit the owners feel comfortable with.

If ticket prices go too high then Sharks fans will stop going so its a delicate balance that has to be maintained. Or they could keep prices as they are and trade Marleau and some others to increase profits.

 

[kdb209]

The Ducks lost over 15 million dollars this past season. According to Brian Burke, the Ducks gave a portion of their revenues from the playoffs back to the league.

What the hell? How does all of this happen?

Revenue Sharing.

ARTICLE 49
Player Compensation Cost Redistribution System
...
For all League Years, the League's Player Compensation Cost Redistribution commitments shall be sourced: first, up to twenty-five (25) percent from excess centrally generated League revenues, if any; next, up to one-third (⅓) of the remaining balance from any refund from the Escrow Account (to the extent the League is entitled to a year-end distribution from the Escrow Account in any League Year), but only from such amounts that are attributable to the Players on the ten highest-revenue Clubs that spent more than the Midpoint of the Payroll Range; and finally, the remainder to be sourced fifty (50) percent from the playoff revenues of all participating Playoff Clubs and fifty (50) percent from certain regular-season revenues of the ten highest-revenue Clubs (the amount of all such assessments to be determined in accordance with the terms of this Player Compensation Cost Redistribution System, as set forth herein).

And the reason the big matket teams were more than happy to go along with Saskin's efforts to reduce the escrow withholding:

In addition, once the League has satisfied its commitment to bring all eligible Clubs up to the Targeted Team Player Compensation (which shall be determined based upon the League's "need-based distribution formula" in each League Year), as set forth herein, then the League shall use any further Escrow Account funds owed to the League to increase all Recipient Clubs' available funds for Player Compensation, up to as high as the Midpoint of the Payroll Range.

Little or no excess escrow dollars => little or no round B revenue sharing.

 

[Blades of Glory]

Its real easy to begrudge others who try to make money.

Its their team and its business. Business needs to be run at a profit the owners feel comfortable with.

If ticket prices go too high then Sharks fans will stop going so its a delicate balance that has to be maintained. Or they could keep prices as they are and trade Marleau and some others to increase profits.

San Jose/Silicon Valley is a pretty high income area. I doubt fans stop going to games unless the on-ice product starts to stink. San Jose has dealt with these "deficits" several years in a row, without cutting salary, so I doubt you'll see them trade anyone, let alone the face of the franchise.

 

[Northern Dancer]

SVSE ( Silicon Valley Sports & Entertainment) is the ownership group that bought the team from the Gunds and thus got the Sharks on the original "sweatheart" deal motivating the Gunds to sell the Northstars and move to San Jose to set up shop with the expansion sharks in 1991. Besides having the city ( as in Us tax payers )pony up the majority of the Arena construction costs ( $170 mil of the $220 mil it cost after overruns ) the Gunds have a fixed lease of $500K they pay the city each year. Yet even with that fixed lease the Gunds, and Now SVSE, keep ALL revenues streams, Parking, conssesions, tix for all events at HP pavillions. Every concert, arena football game, moster truck thingy. I do belive that off the property the parking is a city/ SVSE agreement. So like was said above take any "we are in the red" comments with a lump of salt, its more PR for smokescreen the public to why the tickets are going up again.

FYI the sharks subsidy is just one of the many things our city has in its history of throwing $$ just to get its own citizens to come downtown, like the $4 mil for a CART race http://www.mercurynews.com/mld/mercurynews/sports/columnists/mark_purdy/14737411.htm

What a sweetheart deal the owners pay only, 500k per year !!! For your info MLSE pays the City Of Toronto 1 million per MONTH in municpal taxes. If they lose money with that cost base then they must have hired the Enron accountants !!!