Levitt Report - NHL.com

UNIFIED REPORT OF OPERATIONSREPORTING PACKAGEAffiliated Entities -If revenues or expenses from NHL hockey related events (e.g., licensing of skyboxesor suites, concessions, parking, etc.) are included in an Affiliated Entity’s financialstatements, the entity's portion relating to hockey events should be reported in theURO in the columns entitled "Affiliated Entities".Activities relating to NHL hockey which are carried on through a parentcompany, a subsidiary company, a sister company or through any otherentity which shares common or family operating control with the Teamare considered “Affiliated” and NHL hockey’s share of those operations must bereflected herein. Should you or your auditors have any questions regarding theserequirements, please contact Joseph De Sousa or Lowell Heit at the League office.In other words, for purposes of preparing an accurate analysis of the financialperformance of the NHL and its member Teams, operations of all NHL hockeyrelatedactivities, including operations through Affiliates, irrespective of the legalform or ownership of the entities, is necessary.For example, if your Club or an Affiliated Entity owns, manages or operates thearena in which your Club plays in, the URO requires that you report the NHL hockeyrelated revenues and operating costs of the arena.Since non-hockey event revenues and expenses are excluded from the URO, anappropriate share of the arena fixed revenues and building operating costs shouldalso be attributed to the non-hockey events and excluded for URO purposes. Themethod of revenue/cost allocation between hockey and non-hockey may vary fromone Club to another depending on the significance of the events held in yourbuilding. In all cases, when revenues/costs are being allocated, the Club shouldfollow the following general principles:(a) The basis of allocation should be based on management's bestestimate of the economic reality of the transaction(s) and reflect areasonable approach to allocation(s).(b) The basis of allocation should be consistent to the basis used toreport prior years unless the analysis in (a) above requires change.(c) Where appropriate, the basis should be consistent to internal andexternal reporting.To the extent that revenues and/or costs are based on an allocation between hockeyand non-hockey events, mark an “X” in the space provided in the URO schedule andprovide on Schedule XIII a description of allocation principle and details of thecalculations, including the total pool of revenues/expenses being allocated. Reporton a separate sheet any significant/material change in allocation method(s) used toprepare the 2002-03 URO as compared to the allocation method(s) used to preparethe 2001-02 URO.URO Instructions – September 2003 412/18/2003 10:50 AM