according to forbes, 13 teams are losing money
People keep repeating that but it's not true.
According to Forbes analysis with the financial info they have available to them, those teams have a negative operating income before things like taxes, depreciation and amortization. But it's inaccurate for them to simply say they're losing money.
These owners have multiple corporations with revenue and expenses moving between one and the other. The goal with corps is not to show a huge profit because you want to reduce your tax burden.
Clearly there are teams that are struggling financially but the Forbes report isn't a complete or accurate financial picture. In 2004 Bettman had an extensive audit of franchises to show in irrefutable detail how many were losing money. Strange how he didn't do that this time.
There's the secondary issue of how much it's actually the players fault that these franchises aren't profitable. Unlike 2005 the real issue is the disparity of the franchises, not the un-capped costs of player salaries.
- Wingzman91 likes this