Wild sell out every game last year and still lose money?

[jstewismybastardson]

Minnesota Wild's sellout streak nearing an end - TwinCities.com

not bleeding but that seems goofy that they sell out and still are in a loss position

sell out streak might end tonight too

 

[davnlaguna]

Lots of teams "lose" money. This can be done by charging the team rent on stuff it owns. As an example, lets say your team owns its practice facilities but holds them under a second company name. It can then charge the team to practice there. The team loses money on paper but the parent company still makes a profit. This is done as a way to justify raising ticket prices or lowering salaries or for tax reasons as well as other reasons a CPA might be able to tell you.

 

[Eddie_Shack]

Move them to Texas!

 

[UTVolCountry]

409 consecutive sellouts is impressive!

 

[dash]

Move them to Texas!

Amarillo Armadillos has a nice ring to it...

 

[filosofy29]

Ah, good ol' CPA's and the IRS. The same song and dance as always. ;-)~

 

[dash]

Lest we forget, Craig Leipold got a sweetheart of a deal selling the Nashville Predators and then conveniently being able to become the principal owner of the Wild.

/Some would say that the hands of Gary Bettman were all over that particular transaction

 

[jstewismybastardson]

Lots of teams "lose" money. This can be done by charging the team rent on stuff it owns. As an example, lets say your team owns its practice facilities but holds them under a second company name. It can then charge the team to practice there. The team loses money on paper but the parent company still makes a profit. This is done as a way to justify raising ticket prices or lowering salaries or for tax reasons as well as other reasons a CPA might be able to tell you.

Im well aware that one persons GAAP is another persons "creative accounting". Most teams that lose money these days though under the CBA face the critical eye of NHLPA auditors since the league and players are supposed to be "partners" so Im of the belief that if a team says its losing money, it is, and its not a case of an organizational structure that involves holding companies that shift revenues and expenses.

So i come back to still finding it surprising that they can sell out for that long and publically show a loss unless they are papering the building with comped tickets. You think this is a pre-emptive move to raise average ticket prices? If so, they probably should have done it at the end of last season, no?

 

[pixburgher66]

an the streak ends tonight. announced attendance 16,219, but Russo saying it's probably more like 10,219. lots of empty seats. first non-sellout in team history, breaks 409 game streak. wow.

 

[esls79]

I'd say the losses are not a shortfall of revenue, but a combination of expenses on the books - like one time payments to the former owership group, bonds maturing, etc.

As for the sellout streak, I think any Wild fan over the past year that attends games can tell you the building isn't packed like it used to be. You know what put butts in the seats at the X? Jacques Lemaire (crap coach run trap into lockout)...

 

[esls79]

The Wild score on the first shift of the game...

...and the season is all downhill from here (at least they aren't the Leafs yet)

Good thing I'm a Ducks fan...

 

[juliansteed]

What were the reasons as to why they weren't expecting a sellout? Is it just because there were so many tickets still left as they were approaching gameday or are there other reasons? Also while one streak ended its still only exhibition. Another shorter version of the streak is still alive until they don't sellout a regular season game, which might not be too far off either now that the first non-sellout of any kind has happened.

 

[puckhead]

What were the reasons as to why they weren't expecting a sellout? Is it just because there were so many tickets still left as they were approaching gameday or are there other reasons? Also while one streak ended its still only exhibition. Another shorter version of the streak is still alive until they don't sellout a regular season game, which might not be too far off either now that the first non-sellout of any kind has happened.

agreed. I wouldn't consider the streak over because of an exhibition game.
reg + playoffs only.

 

[juliansteed]

agreed. I wouldn't consider the streak over because of an exhibition game.
reg + playoffs only.

I actually didn't even realize until I read that article that the streak included exhibition games. But since those were always sold out in the past but not anymore there's likely reason to believe the first regular season non-sellout could happen this season. I also didn't realize that each sellout was its own individual feat with some games not selling out until gameday. I just assumed that they were all sold out well in advance with a waiting list. It kind of makes the streak seem more amazing in a way since they always managed to pull it off despite reasons for doubt at times.

 

[puckhead]

I also didn't realize that each sellout was its own individual feat with some games not selling out until gameday. I just assumed that they were all sold out well in advance with a waiting list. It kind of makes the streak seem more amazing in a way since they always managed to pull it off despite reasons for doubt at times.

could be one of those things like Pitts or Florida used to do:
on game days, the best seat in the house is $10 or something.

that would also explain how "selling the building out" doesn't cover costs.

 

[Destroydacre]

The Wild score on the first shift of the game...

...and the season is all downhill from here (at least they aren't the Leafs yet)

Good thing I'm a Ducks fan...

The Wild just signed Jared Spurgeon yesterday, so there's one step in the right direction.

 

[dash]

The point about making the playoffs in order to make a profit is a valid one, in my opinion...Each home playoff date is probably worth approximately 1.5 million to the team (at least that's what I have read in the past) without having to pay out one red cent to the players in the form of salary.

 

[juliansteed]

could be one of those things like Pitts or Florida used to do:
on game days, the best seat in the house is $10 or something.

that would also explain how "selling the building out" doesn't cover costs.

Yeah that would make sense.

 

[juliansteed]

The point about making the playoffs in order to make a profit is a valid one, in my opinion...Each home playoff date is probably worth approximately 1.5 million to the team (at least that's what I have read in the past) without having to pay out one red cent to the players in the form of salary.

Yup. The phrase I always hear is that the players make their money during the regular season and the owners make their money during the playoffs.

 

[BOSSMANPC]

Yup. The phrase I always hear is that the players make their money during the regular season and the owners make their money during the playoffs.

This is true.