OHL teams generate more than enough revenue to operate in a first-class manner, but not if ownership uses debt financing to purchase a team for, say, $20 million. In other words, the mortgage payments are expensive. A $20 million loan at 5% interest with a 10 year amortization = $211,000 per month ($2.5 million per year). Even if the purchaser digs into his own pocket for 50% of the purchase price upfront (unlikely, but possible), the yearly loan payments are still a cool $1 million.
And that’s how we get bus rides through snowstorms instead of hotels. Hypothetically — I’m not the kind of guy to suggest any of this applies to the Niagara franchise.