tag:blogger.com,1999:blog-9215652504344172254.post2719358845625046046..comments2024-01-15T09:53:40.089-05:00Comments on Black Aces: Lehnsanity Rolls On But Ex-Sens Take The Two Points .... Leeder's Not Bluffing... And Friday Night Game NotesJeremy Milkshttp://www.blogger.com/profile/09719907099819957578noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-9215652504344172254.post-20034804273387145672012-03-05T18:44:40.178-05:002012-03-05T18:44:40.178-05:00Actually, the Senators are QUITE catered too. They...Actually, the Senators are QUITE catered too. They get access to the best health care without wait times, they can jump queues whenever tehy want for any business and they probably have some great accounting going for them so they avoid taxes, kinda like the owner who lives in Barbados all the time.<br /><br />Call the bluff Ontario, you'll see it was all smoke and mirros and the team will still be there...just another scare tactic to leach more money off us.<br /><br />GregAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-9215652504344172254.post-30242915421701520012012-03-05T18:42:23.065-05:002012-03-05T18:42:23.065-05:00anon @ 6:14pm
Agreed that the players and owners ...anon @ 6:14pm<br /><br />Agreed that the players and owners aren't the issue, directly.<br /><br />But, as you mentioned, a 50% tax deduction is an incentive to purchase tickets and suites. In Ontario, if gives businesses a 13% discount to attend a game.<br /><br />The taxpayer is paying for that discount.<br /><br />My point is that if you need to discount to survive, maybe your ticket prices are too high. Reduce the ticket price, to business, then you won't need the tax deduction.<br /><br />As it is, the taxpayer is paying 13% of the ticket price for business. The owners and the players benefit because this goes to general revenue and results in higher salaries and higher profits.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9215652504344172254.post-73026610203626031972012-03-05T18:14:12.874-05:002012-03-05T18:14:12.874-05:00The billionnaire owners and millionnaire players a...The billionnaire owners and millionnaire players aren't the issue here at all. It's the incentive that a 50% tax deduction provides to businesses to go out and fill up the building by purchasing suites and season's ticket packages. <br /><br />The Senators and the players aren't getting some tax break here. They aren't being catered to, or protected.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9215652504344172254.post-51115019201355284782012-03-04T18:04:50.782-05:002012-03-04T18:04:50.782-05:00Just as a reference, here's how the numbers wo...Just as a reference, here's how the numbers work (feel free to correct me if I missed something):<br /><br />The general corporate tax rate in Ontario is 26% and tickets are 50% deductible.<br /><br />That means on a $100 ticket:<br /><br />$50 is deductible. <br /><br />$50 x .26 = $13<br /><br />Essentially, if a large business gives the Senators $100 for a ticket, when the business files its taxes, the government gives the business $13 back.<br /><br />That means the actual cost for the ticket was $100 - $13 = $87.<br /><br />If the Sens feel that all businesses would stop buying $100 tickets without the tax deduction, well then they could reduce the price to $87 because that's what it's costing them now.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9215652504344172254.post-77871127185622688112012-03-04T17:35:54.232-05:002012-03-04T17:35:54.232-05:00That was a great game.
Great that Emery had a goo...That was a great game.<br /><br />Great that Emery had a good performance and that Lehner showed his 'A' game as well. The guy has skills.<br /><br />Spezza had a strong game also.<br /><br />Huge fan of the NHL. It's a great game and a great product. The owners and the players deserve all the money they make. But, I'm a citizen before I'm a hockey fan.<br /><br />I hope that the Ontario government calls Leeder's bluff.<br /><br />The NHL's a great business. It's a business where billionaires pay millionaires. But, when they cry poor, I roll my eyes.<br /><br />Ottawa's a rabid hockey market. If you depend on a tax deduction to make your business work, then something's wrong.<br /><br />Governments across North America are in debt. The books need to be balanced.<br /><br />It's very easy to say don't cut my in my department. It's quite another thing to offer an alternative.<br /><br />Maybe we should keep the tax deduction and fire a bunch of nurses instead. Or keep the tax deduction and not pave a few roads. Those are the real choices that the governments face. It's about priorities.<br /><br />As far as I'm concerned, the Senators have just written the playbook on how to fight against cutbacks, if you're affected. Next time a hospital budget is cut, the hospital CEO shouldn't say that some beds may have to be closed. Rather he/she should say that the whole hospital will close.<br /><br />This is the best way to turn it into an emotional issue, where all rationality gets thrown out the window.<br /><br />So the Senators may not survive if the tickets are no longer tax deductible. Give. Me. A. Break.<br /><br />Anytime an NHL franchise complains about a loss of revenue, the first thing that pops into my mind is linkage. That's what the 2004-05 lockout was all about.<br /><br />Gary Bettman implemented a great system. If NHL revenues fall, then so do salary expenses. That's what linkage is all about.<br /><br />So, if the Canadian teams actually end up losing revenue due to the new tax policies, NHL revenues will also fall and so will salary expenses.<br /><br />But, is it a certainty that tickets sales will fall? That's what we're told.<br /><br />But, there's no point on speculating whether ticket sales will fall. The Senators have a good handle on their business, and if they feel ticket sales will fall, they have every right to make their voice heard and protect their turf and make whatever decisions they need to make.<br /><br />The best part is that we live in a free market. So if Melnyk and Leeder feel that without tax deductible tickets that the numbers don't work, then they should put the team up for sale.<br /><br />That's how a free market works.<br /><br />The team doesn't fold. The team is put up for sale and a new entrepreneur with different ideas takes a run at things because they see an opportunity.<br /><br />It happens all the time.<br /><br />That's what happened to the Habs in 2001. The Canadian dollar was low, player salaries were rising. The Molson group essentially said that the numbers didn't work as far as them owning the team.<br /><br />They put it up for sale. American George Gillett saw opportunity where Molson's saw a problem. Gillett took a risk and paid $185M for 80% of the team and rode out the storm. After 8 years, he sold the team back to Molson for $550M. I guess the numbers worked for him pretty good.<br /><br />We're entering a period where everybody's being asked to do a little more with less. Hospitals, schools, and many other areas of the economy across North America are adapting to do a little more with less.<br /><br />I don't see why billionaire owners and millionaire hockey players should be protected.<br /><br />And besides, we don't even know for sure that ticket sales will fall. One thing I know for sure is that when you have a winning team, in any sport in any city, the building is full.<br /><br />If the Sens want to immunize themselves against the effects of non tax deductible tickets, they should be laser focused on creating an exciting and winning product.<br /><br />I'd bet that it would turn all this fuss into a non issue.Anonymousnoreply@blogger.com