Forbes Magazine just published their annual review of NHL finances and the results are not all peachy for the Carolina Hurricanes.
While the magazine stated that the franchise's overall value increased 8% last year, putting the team at 22nd in the league in total value, (168 million), they ranked the team's income last year as worst in the entire league. It's no wonder that owner Peter Karmanos wants to take a more active role in team marketing and management.
According to Forbes, the club took in revenues of over 75 million, had player expenses of 52 million, and apparently had other expenses totaling over 34 million, which left a loss of 11 million dollars for the year.
The 75 million in revenue that the Canes took in was ranked at 22nd, but the team had higher player and miscellaneous expenses than any other team earning less revenue.
Strangely enough according to the report, Carolina took in more revenue in 2008 than they did in 2006, the year the team won the Cup and had four rounds of playoff money coming in. That doesn't make much sense unless the difference is made up in revenue sharing.
But supposedly, the team did not maximize revenue sharing last year, but did earn some the first year after the lockout.
It's also hard to believe that Carolina lost money in 2002 when player expenses were only 37 million, but they took in revenue of 67 million. Apparently, they had "other expenses" of over 35 million six years ago as well.
It would be interesting to know what comprises the "other" expenses that are not related to the players.
The Hurricanes earned more revenue last year than any other team in the Southeast. Next closest was Washington at 73 million, but Washington's expenses were lower and they only lost 6.9 million, which placed them 23rd in the league in that category.
The New York Islanders brought in the lowest revenues in the league, only 64 million. They ended up losing 8.8 million, again less than the Canes because of lower expenses.
I'm going to try to get more information about this and will post about it later.
I contacted a team official and they do not affirm these numbers, nor do they participate in the Forbes survey. The financial results are pure conjecture by Forbes.