B.Knight: Reds in the black !

[denime]

Reds in the black


Forbes magazine has just shed some much-needed light on the finances of Major League Soccer. Turns out only three of the loop's 14 teams are profitable – the Los Angeles Beckhams, FC Dallas … and Toronto FC.
To no huge surprise, pro soccer has turned out to be a good little earner for its corporate bosses at Maple Leaf Sports and Entertainment. ......

READ MORE (http://www.theglobeandmail.com/servlet/story/RTGAM.20080930.WBsoccerblog20080930135319/WBStory/WBsoccerblog/)

[sweetlemon69]

Good article. Kinda regurgitates already common knowledge, but cool. And the 'onward' thing, please stop lol. :)

[redcard]

now if only three teams are profitable, doesnt that mean that there is a slim chance of the cap being increased significantly? even if to go to the $3.6-4.8 figure that was mentioned on mlsrumours

[BakaGaijin]

now if only three teams are profitable, doesnt that mean that there is a slim chance of the cap being increased significantly? even if to go to the $3.6-4.8 figure that was mentioned on mlsrumours

There are so many loopholes when you own a sports franchise, particularily in the U.S. Teams that are not "making money" are writing off expenses and pocketing cash. They even write off the depreciating value of players! The only industry that let's you write off depreciation of human beings!

They say they are losing money to get fans on their side for contract negotiations, but in fact the owners are making money. Additionally, with the value of teams constantly increasing, it makes this investment even better.

Read pages 193 and 194 in the link below:

http://books.google.ca/books?id=59fXN_fT3c8C&pg=PA193&lpg=PA193&dq=sports+franchise+tax+breaks&source=web&ots=w5DEqJph4r&sig=Bij2Poccd5U_iIaKZS9sJb0knI4&hl=en&sa=X&oi=book_result&resnum=3&ct=result#PPA193,M1

[flatpicker]

good read...
He's bang on about the Leafs.
If MLSE suddenly decided that making a few less dollars was worth adding atmosphere to hockey in this town then they should rip out the private boxes at one end of the arena and put in a section of cheap seats for avid fans. They could hold a contest or something for people to show why they are the best supporters and the top 500 or so people (however many seats they could fit) would be awarded seats. Or maybe set up a club where the tickets rotate amoungst rabid Leaf fans. All a dream, I know. I just hate the drabness that goes with hockey in this city.

by the way... why, whenever I read Ben Knight's blog, do I always see &#8211 throughout???

[Oldtimer]

There are so many loopholes when you own a sports franchise, particularily in the U.S. Teams that are not "making money" are writing off expenses and pocketing cash. They even write off the depreciating value of players! The only industry that let's you write off depreciation of human beings!

They say they are losing money to get fans on their side for contract negotiations, but in fact the owners are making money. Additionally, with the value of teams constantly increasing, it makes this investment even better.

Read pages 193 and 194 in the link below:

http://books.google.ca/books?id=59fXN_fT3c8C&pg=PA193&lpg=PA193&dq=sports+franchise+tax+breaks&source=web&ots=w5DEqJph4r&sig=Bij2Poccd5U_iIaKZS9sJb0knI4&hl=en&sa=X&oi=book_result&resnum=3&ct=result#PPA193,M1

Good link.
The clubs didn't include as profit money from TV deals that SUM earned but didn't distribute (they distributed only a portion of the profits and kept the rest as retained earnings). Can you imagine not counting TV deals? The effect of this was almost $1 million per team.

[Parkdale]

Good article. Kinda regurgitates already common knowledge, but cool. And the 'onward' thing, please stop lol. :)


it's his sign off. nothing wrong with that. keep it for here onward.

[Parkdale]

oh...



There is absolutely no correlation between having a designated player and winning, and I don't believe there will be until the rules are significantly changed.

I don't know. Blanco has 9 goals and 15 assists this season. Would Chicago be 3rd in the east (and in no danger of being passed by NY) without him? I'd say no.

[Shakes McQueen]

by the way... why, whenever I read Ben Knight's blog, do I always see &#8211 throughout???

Poor coding of the website, leading to a poor interpretation by your browser.

Usually stuff like that indicates where quotation marks, or bolded text were supposed to go.

"The More You Know."

- Scott

[Super]

Hmm, that's shocking. DC United has about the same attendance as we do, and what about Houston with back to back championships? We all know it's not the wages for the players that's eating up all that cash, so what the fuck is going on here?

[Oldtimer]

Hmm, that's shocking. DC United has about the same attendance as we do, and what about Houston with back to back championships? We all know it's not the wages for the players that's eating up all that cash, so what the fuck is going on here?

If you don't have a soccer specific stadium it's hard to make money. That's why DC isn't making cash like TFC.