
Originally Posted by
Dana
I don't think there's anyone denying that the revenue sharing system needs work. But record setting revenue league wide doesn't mean profits for every team. A few markets can drive revenues up for the league but that doesn't mean every team is turning a profit. Look at the Jets move to Winnipeg. They probably sold a ton of merchandise as well as more season tickets at a higher cost per ticket than they were getting in Atlanta. Definite increase in revenue for the league as a whole. That doesn't help the New York Islanders move towards turning a profit.
Just because revenues increase doesn't mean spending hasn't increased as well. The PA was telling the owners to cut their spending as a way to control losses and then comes out and asks for individual rooms on the road, something that could easily add $100,000 or more to a team like the Kings travel budget.
The Cap is tied to league revenues as a whole but the cap floor is probably at a point where teams have to spend that much but aren't making near that much money. A floor of $50 mil is going to make it hard for teams like Phoenix, the Isles (old arena and I believe they can't qualify for revenue sharing because they're in a major media market) to profit. Other teams like Florida, Anaheim, Nashville are spending right about at that point where they might not lose a ton, but they're not going to be making money unless they go deep in the playoffs.