Quote:
Originally Posted by Cowtown_Tim
Back when the dollar was on par Calgary would have been a have team....and back when the dollar was on par, the salary cap was $60 million, now it's $75 million, and when you do the exchange that works out to around $100 million Canadian. You don't need to look at the books to believe that they've gone from have to have not.
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You have blinders on. The cap is a formula based on revenue. It went up in a big way when Rogers signed on to send $5,800,000,000.00 to the NHL, largely going to the Canadian teams. This is the same deal that requires the number of teams in Canada to not go down, and there to be three teams in Western Canada. This revenue stream is so good that the Canadian teams are virtually even based on sale of media rights before they sell any tickets or other advertising.
When the cap goes up, the receivables are higher and the profits are higher.
Further, it is ridiculous to calculate the profits just based on the Flames, when the Flames are only a conduit for the larger portion of the businesses of the Calgary Sports and Entertainment entity. That is why the flames are now worth $500,000,000.00 after being purchased for a mere $16M. To put this in perspective, if I were to have contributed $16,000, or 0.1% of the original purchase price, that would not be worth $500,000. Sweet!
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