02-12-2004, 08:44 PM
Levitt Report
This was done by an independent accountant, not the league accountants. I read a similar article in the Hockey News a few months ago, in it they had some pie graphics and whatnot explaining where all of the revenue was going. The numbers were pretty close to what this report indicates. It should also be noted that 4-5 teams have openly brought players into a board room and opened the books for them to see, Calgary being the one I've heard the most about.
You can see for yourself the increase in player salary over the past ten years. What's not in the report is the change in the percentage of revenue that now goes to player costs. That number went from 52% in 1993 to 75% presently.
I don't care if your running a professional sports franchise, or if your running Peter's Pizza parlour. You just can't run a succesful business when your spending 75% of your total revenue on employees. The remaining 25% just isn't enough to operate other ends of your business, nevermind even thinking about making a profit. And I believe the owners should be entitled to a profit. A 60-40 split is more than fair imo.
This was done by an independent accountant, not the league accountants. I read a similar article in the Hockey News a few months ago, in it they had some pie graphics and whatnot explaining where all of the revenue was going. The numbers were pretty close to what this report indicates. It should also be noted that 4-5 teams have openly brought players into a board room and opened the books for them to see, Calgary being the one I've heard the most about.
You can see for yourself the increase in player salary over the past ten years. What's not in the report is the change in the percentage of revenue that now goes to player costs. That number went from 52% in 1993 to 75% presently.
I don't care if your running a professional sports franchise, or if your running Peter's Pizza parlour. You just can't run a succesful business when your spending 75% of your total revenue on employees. The remaining 25% just isn't enough to operate other ends of your business, nevermind even thinking about making a profit. And I believe the owners should be entitled to a profit. A 60-40 split is more than fair imo.
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