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The reported loss of $10M this past season by the San Jose Sharks shouldn’t be read into much more than it has to be.
There has been some speculation about the Sharks financial ‘troubles’ over the past few seasons that has led to thoughts of the Sharks leaving San Jose for greener pastures. I’d wager that idea would be a last resort for a team with the worth that the Sharks have, not an active thought among executives. San Jose’s value on Forbes List continues to climb and sits at $405M currently, good enough for 13th in the NHL.
In 2011-2012 the Sharks reportedly had a loss of roughly $15M and the season that followed, the most recent NHL lockout year, was tough on the pocketbooks for most NHL clubs. Current COO John Tortora was brought in to action a plan to get San Jose back in the black and they are on their way to doing just that.
Losses are down compared to the last full NHL campaign and the Sharks are expected to be near the top of the league in attendance again this season. The added value of the outdoor game that the Sharks will host should be a great financial boost to the ledger. Undoubtedly, moving past the first round of the playoffs wouldn't hurt either.
The biggest snag in the Sharks money making plans seem to be the horrible, Luongo-length, television deal that San Jose is on the hook for. The deal pays pennies compared to other NHL teams including, and most painfully, the Kings and Ducks. The Sharks may have more playoff appearances in the last decade but those two teams have the one thing the Sharks have been chasing all that time: Lord Stanley.
Assuming the Sharks make the playoffs again this year they should be very close to turning a profit and moving towards their goal of being in the black financially. The biggest reason not to worry, though, is that the Sharks majority owner, Hasso Plattner, is reportedly worth $8.7B. Cutting a $10M cheque for Plattner is like buying a happy meal for the average person, it doesn't make you feel good but you forget about it pretty quickly.
The Sharks continued success throughout the regular season and a nice, young core of players beyond the two prominent, and aging, veterans make this team a worthwhile venture to keep in San Jose. They also has the benefit of good cap hits while choosing to remain competitive and not operate under an internal salary cap. The willingness to keep the current group together suggests the ownership isn't interested in finding extra dollars by way of cutting the salary cap.
Regardless of anyone’s take on the situation any publicity about the financial issues will only make it easier for the Sharks financial wizards to get money out of pockets that aren't their own for arena upgrades and a re-worked television contract. Let’s be realistic, there are plenty of franchises that should consider relocation before San Jose.
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