Quoting: Kotkaniemi15
What extra money will the habs be making in the playoffs? A little bit of revenue from ads on the boards and helmets? That won’t even cover the cost of 1 league minimum player. And while some owners obviously are in the business to make money, a lot aren’t. See Winnipeg. They lose tonnes of money each year, but their owner is filthy rich and he’s willing to lose money each year to keep a team in Winnipeg. Now the habs are obviously profitable most years, but for Moulson the habs profit is secondary to team success. And that’s especially apparent this year, when team success has little effect on the team’s financials.
no team is losing money. Even the little they lose in a season they are reaping back.
Especially as they wait on new TV deals etc... The values of the team rise every year, far outpacing the loses. It's why people pay 800 million for a team.
There is clearly money to be made, more than if they didn't make it right? How much, none of us know that number. But it doesn't matter. The question is does dealing a 3rd and 5th round pick, which is basically nothing make you money back. The answer to that is yes, which is why they do it. As the 3rd and 5th round pick don't hold much value. It's not like it's a 1st rounder.
Teams trade picks for cap space all the time. So them trading picks for capital as well should be no surprise. It's a math game. Make the playoffs get paid more, does the pay = the value of the pick, yes, ok do it.
Don't underestimate what they can make on those games. It's not 1 game. It's at least 4, probably more. I'm going to guess they make a few million if they make it. Is a few million worth a 3rd and 5th. Yeah it is.
It's really a zero sum game. You are going to spend the vast majority of your operating costs anyway. The question is do you do nothing and just get what ever the season holds, or do you do something and make a little extra to offset the costs. If you are in position you probably do something. Which is what MTL did.
But that cost has a limit. As there becomes a point where assets spent does not equal reward. Which is why I don't see them spending big.