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SHARKS REFUTE FINANCIAL WORLD STORY

     Although the latest issue of FINANCIAL WORLD estimates that
the Sharks posted an operating profit of $15M last year, team
President Art Savage said the figure was closer to $4M.  FW
claimed "hockey owners wanted a new contract with the players in
place before it became apparent just how much money teams were
collecting from a new generation of arenas that began operating
in San Jose and Anaheim."  In its February 14 issue, FW reported
that revenue from new arenas, a TV deal, and long-term marketing
agreements helped determine the league's strategy because NHL
execs "knew that the longer the negotiations dragged on, the more
apparent the league's imminent prosperity would become."  Savage
said FW has both the "team's earning's and the owners' strategy
wrong."  Savage: "It's is unfortunate (the author) doesn't have
the slightest idea what he is talking about and he is able to
publish it in a publication that's fairly well respected."  The
SAN JOSE MERCURY NEWS estimates the Sharks made about $10M last
year, which Savage also disputes.  Savage said his figure of $4M,
"based on audited statements he would not release, is inflated"
because it does not include $2.5M in signing bonuses (Barry Witt,
SAN JOSE MERCURY NEWS, 2/4).  FW also reported the Sharks are
developing a movie script, educational software, video games, and
a coffe-table book.  Writes FW's Jason Starr, "Since the Sharks
are developing these projects themselves, they will probably have
to pay only a royalty to the league -- about 8% to 10% of the
product's wholesale price for use of the NHL logos -- and keep
the rest" (FW, 2/14 issue).
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Franchises, NHL, San Jose Sharks

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