galixon
Blue-Chip Prospect
Posts: 486
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Post by galixon on Mar 29, 2023 13:03:20 GMT -4
When has Bathurst ever tried it? You can't say the local ownership group is anything like what Kitchener is doing. Don't the Kitchener Rangers essentially operate a as a not-for-profit organization? And they cover their operating costs each year through team revenues? The problem with that model in Bathurst is, who cuts the cheques when the team has a deficit? And can they raise enough initial capital to buy the team from the existing shareholders? Or do they just expect them to give it away? Yeah that's true, didnt think about it that way. The non-profit model they use wouldn't work in Bathurst since the reason they're in this "mess" is because they don't bring in enough fans to cover the costs and pay up debts. |
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Post by Jack Bauer on Mar 29, 2023 13:18:15 GMT -4
Don't the Kitchener Rangers essentially operate a as a not-for-profit organization? And they cover their operating costs each year through team revenues? The problem with that model in Bathurst is, who cuts the cheques when the team has a deficit? And can they raise enough initial capital to buy the team from the existing shareholders? Or do they just expect them to give it away? Yeah that's true, didnt think about it that way. The non-profit model they use wouldn't work in Bathurst since the reason they're in this "mess" is because they don't bring in enough fans to cover the costs and pay up debts. Exactly. Thats why it hasn't worked with the local ownership. Bathurst is too far removed from the populated areas, unfortunately. The upside is very limited to profit only really being possible if the stars aligned perfectly to deep playoff runs over consecutive years. Otherwise its 3 years of losses building to 1 break even or slight profit that doesnt cover the losses. Kitchener's model would work in Moncton but I dont think it would in a remote area unless the community was 100% behind it and we have like a decade of it in Bathurst already. Local government ownership might be the only way it works longer term and we all know how things improve when municipal government gets into the mix. |
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Post by jimmy on Mar 29, 2023 14:04:52 GMT -4
Yeah that's true, didnt think about it that way. The non-profit model they use wouldn't work in Bathurst since the reason they're in this "mess" is because they don't bring in enough fans to cover the costs and pay up debts. Exactly. Thats why it hasn't worked with the local ownership. Bathurst is too far removed from the populated areas, unfortunately. The upside is very limited to profit only really being possible if the stars aligned perfectly to deep playoff runs over consecutive years. Otherwise its 3 years of losses building to 1 break even or slight profit that doesnt cover the losses. Kitchener's model would work in Moncton but I dont think it would in a remote area unless the community was 100% behind it and we have like a decade of it in Bathurst already. Local government ownership might be the only way it works longer term and we all know how things improve when municipal government gets into the mix. According to their website, Kitchener got their franchise for $1 back in the 60's when the rules changed and NHL teams no longer could directly own and sponsor their own junior team. That is a huge difference from a modern context where a community group would presumably need to purchase the existing franchise from current owners for several million dollars. |
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