Melnyk's Financial Woes: Melnyk's Budget Edition

SeawaySensFan wrote:

Hoags wrote:

SeawaySensFan wrote:

Hoags wrote:Wayne Scanlan ‏@HockeyScanner
Melnyk on his team's payroll: "we already are over budget, I just found out yesterday." #sens

Here we go again.

So this was somewhat out of context but still a stupid remark. Melnyk was clumsily trying to limit expectations. He was less than enthusiastic about our playoff chances only "hoping" we would go deep but to expect us to compete every night. Actually didn't rule out adding something mid-season but that Murray would have to make a strong case. So kind of all over the map.

Probably got a good amount of backlash for his "buckle up" comments :lol

I wonder why they're keeping expectations so low.  We've got quite a good team with some hype, even the US media which traditionally pretends we don't exist.

He seemed to be wanting to say we'll have to get by with what we have so let's hope that's enough but then he said he might add. He was probably wasted again.

NEELY wrote:They are, Melnyk is just an a**hole.  He can set the budget anywhere he wants but the floor is going to be over "his budget" soon.  That and the Sens make money that he then re-allocates to other business' and entities.  The budget is BS and always has been.  

The statement serves to confirm what team and league sources were saying during the Stanley Cup Final in June, regarding the NHL’s projected revenue growth (SportsBusiness Journal, June 24-30 issue). It also is a reflection of how the league, buoyed by the 10-year collective-bargaining agreement it executed with the NHL Players’ Association in January, sees the next decade as an opportunity for unprecedented financial growth. It previously has taken the league six seasons (from 2005-06 to 2011-12) to add $1 billion in national revenue; the NHL now is declaring it will match that total in the next three seasons.

The NHL posted $3.2 billion in total revenue for the 2011-12 season, the last full season before the lockout-shortened 2012-13 campaign. In 2012-13, when each team played 48 regular-season games instead of the usual 82, the league has projected $2.4 billion in total revenue.

Having gross national revenue — derived from national deals including sponsorship, media and licensing — at 20 percent of HRR, which includes all revenue, is notable growth, as well. In 2005-06, Collins’ first with the NHL and a year after the lockout that canceled the entire 2004-05 season, the league’s gross national revenue accounted for 7 percent of HRR.

Such gains would be welcomed by individual club owners. Many teams — including the Chicago Blackhawks, Pittsburgh Penguins, Boston Bruins and New York Rangers — are close to being maxed out on key revenue streams. In what is still regarded as a gate-driven league, these clubs are sold out of season tickets and have long waiting lists. Sponsorship sales are also strong, so revenue driven by the league office is essential for the clubs.

NEELY wrote:I have no issues with Watson not giving Melnyk the casino, I agree with that to be honest.  My issue is what he's going at RCR which is nothing except taking money from the owners of RCR behind closed doors and propping up a dying "sport".

Hoags wrote:

NEELY wrote:I have no issues with Watson not giving Melnyk the casino, I agree with that to be honest.  My issue is what he's going at RCR which is nothing except taking money from the owners of RCR behind closed doors and propping up a dying "sport".

Or that he wants to be re-elected and needs voter support in that area.

But it should have been a bidding process, Melnyk should have been permitted to present his proposal and it should have been evaluated on its own merits.

Hoags wrote:

The NHL posted $3.2 billion in total revenue for the 2011-12 season, the last full season before the lockout-shortened 2012-13 campaign. In 2012-13, when each team played 48 regular-season games instead of the usual 82, the league has projected $2.4 billion in total revenue.

wprager wrote:

Hoags wrote:

The NHL posted $3.2 billion in total revenue for the 2011-12 season, the last full season before the lockout-shortened 2012-13 campaign. In 2012-13, when each team played 48 regular-season games instead of the usual 82, the league has projected $2.4 billion in total revenue.

If all things are equal (meaning we lost as much from gate as we did from sponsors and the Winter Classic, then $2.4B extrapolated to an 82-game schedule is $4.1B, or a 28% increase over the previous year.

I know they still got the money from NBC but that was just $200M.  They lost several sponsors and even the ones that stayed paid less because the season was shorter.  Then the loss of the Winter Classic and All Star events, and the 24/7 HBO stuff, and it surely makes you wonder what a full season would bring -- maybe even more than the extrapolated $4.1B.

57% of $3.2M is $1.824; 50% of $4.1B is $2.05B, or a 12% increase.  And with the additional outdoor games this season is it ridiculous to assume that the league revenues *won't* top $4B?  $2.05B is $68M *per team*!  That's not $68M ceiling, that is the average, and with only about 1/3 of the teams spending to the cap that would mean a ceiling that is well above $70M.

SeawaySensFan wrote:

wprager wrote:

Hoags wrote:

The NHL posted $3.2 billion in total revenue for the 2011-12 season, the last full season before the lockout-shortened 2012-13 campaign. In 2012-13, when each team played 48 regular-season games instead of the usual 82, the league has projected $2.4 billion in total revenue.

If all things are equal (meaning we lost as much from gate as we did from sponsors and the Winter Classic, then $2.4B extrapolated to an 82-game schedule is $4.1B, or a 28% increase over the previous year.

I know they still got the money from NBC but that was just $200M.  They lost several sponsors and even the ones that stayed paid less because the season was shorter.  Then the loss of the Winter Classic and All Star events, and the 24/7 HBO stuff, and it surely makes you wonder what a full season would bring -- maybe even more than the extrapolated $4.1B.

57% of $3.2M is $1.824; 50% of $4.1B is $2.05B, or a 12% increase.  And with the additional outdoor games this season is it ridiculous to assume that the league revenues *won't* top $4B?  $2.05B is $68M *per team*!  That's not $68M ceiling, that is the average, and with only about 1/3 of the teams spending to the cap that would mean a ceiling that is well above $70M.

What does this all mean for the broken Zamboni?

SeawaySensFan wrote:Small minded city council at it again preferring CanAm league baseball to AA (Blue Jays farm team).

www.ottawacitizen.com/sports/Even+winning+bidder+surprised+Ottawa+rejected+Double+baseball+offer/8978958/story.html

NEELY wrote:Amazing about the Can-AM league... I actually can't believe it still functions.  Can't wait to vote Watson out.

Ian Mendes ‏@ian_mendes
Eugene Melnyk tells us @TSN1200 the Sens have lost $110 million since he took over ownership in 2003.

James Gordon ‏@SensReporter
Sens gonna make more changes to rink, more "terraces" where people can watch hockey and eat at same time. Too many suites, Melnyk says

Ian Mendes ‏@ian_mendes
Melynk also told us that he will add salary if the team is in contention close to the deadline. "If I need to add a piece, I will."

Hoags wrote:I'm sure most people are sick of this Dung, but it's still our team .....

Ian Mendes ‏@ian_mendes
Eugene Melnyk tells us @TSN1200 the Sens have lost $110 million since he took over ownership in 2003.

Back in August it was $94M ... hmmm

James Gordon ‏@SensReporter
Sens gonna make more changes to rink, more "terraces" where people can watch hockey and eat at same time. Too many suites, Melnyk says

.

But if we're broke how do we afford that?

Also said they're working with the city to mend fences, quite the turnaround after the casino thing fell through.

Ian Mendes ‏@ian_mendes
Melynk also told us that he will add salary if the team is in contention close to the deadline. "If I need to add a piece, I will."

Vanek? Hemsky?