Levitt Report - NHL.com

ooks. Similarly, the combined URO results include all expenses 5 related tohockey activities such as player costs, development costs, game day costs, fixedbuilding costs (excluding depreciation and interest) and applicable General andAdministrative Costs (G&A) regardless of whether recorded on the team’s booksor an affiliate’s books.The combined League-wide URO for the fiscal year ended June 30, 2003 reports thefollowing amounts (in millions of U.S. dollars):2003 % of RevenueCombined Revenues $1,996 100Player Costs 1,494 75Other Operating Costs 775 39Total Operating Costs 2,269 114Operating Loss, excludingdepreciation, amortization,interest and taxes 1 ($273)(1) Incorporated in the above combined results for the League are the costs of running the League office,the operating profit of NHL Enterprises and the net profit from the national broadcasting agreements.These are audited annually at the League level and each team includes in their URO their share ofthese revenues and costs as calculated in accordance with the League’s constitution and by-laws(1/30th adjusted for currency).Separate line items are provided in each team URO for League office costs, under “Dues andAssessments”; for net profit from NHL Enterprises, included in Other Revenues as “NHL EnterprisesRights”; and for net profit from the national broadcasting contracts included as “NHL TV Revenues –Net”.In the 2002-2003 season, 19 teams reported operating losses and 11 teams reportedoperating profits. The largest profit reported in its URO by a team was $14.6 million andthe largest loss was $40.9 million. The average profit of the 11 teams reporting a profiton the URO was $6.4 million. The average loss of the 19 teams reporting losses was$18.0 million. The average loss reported on the combined League-wide URO for the 30teams was $9.1 million.5 Such expenses are more fully detailed in the URO reporting package (Appendix B) and outlined inAppendix D & E.21