Shareholders of Northwest Sports Enterprises Ltd., the
publicly traded firm that controls the Canucks, were warned
yesterday "it may be the next millennium before Northwest
turns a profit," according to Keith Damsell of the FINANCIAL
POST. Northwest Vice Chair Arthur Griffiths: "Black ink is
very optimistically three years, possible five years away."
For the first quarter ended June 30, Northwest reported a
loss of C$2M, or C$2.02 a share, on revenue of C$4.7M, in
comparison to a loss of C$1.2M, on C$1.20 a share, on
revenue of C$3.4M the year before. Hockey operation
expenses increased to C$2.8M, up from C$2.2M one year
earlier. President & COO John Chapple said Northwest has
made a "strategic decision to build a real winner" in paying
for star players. Chapple said a long-term strategy to
increase revenue and profit may see Northwest "consider"
selling broadcast rights to a new TV partner if the "price
is right." This would alter its long broadcasting
relationship with Griffiths-controlled WIC Western Int'l
Communications Ltd. Chapple continued to say there's a
"potential of a good marriage" between Northwest and S3, the
newly licensed sports network. Northwest is 87% controlled
by Orca Bay Sports & Entertainment, which owns the Grizzlies
and GM Place (FINANCIAL POST, 12/17).
