[Rumour] Flames actively entertaining selling around 15 to 30% of the club

[sureLoss]

From the fourthperiod so take it FWIW.

https://www.thefourthperiod.com/pagn...ty-for-toronto

Utah’s addition to the NHL should provide a nice uptick in Hockey Related Revenues, further enforcing the League’s financial standing. Business is in a good place; team valuations are increasing, sponsorship deals keep coming in, the salary cap is already projected to go up another five percent for 2025-26, and revenues continue to climb.

Some teams are taking notice and are starting to explore the market for new partners.

I’m told a healthy chunk of NHL owners are willing to take on new minority stakeholders, with one club in the process of finalizing a deal to sell 15 percent of that specific franchise. I am not currently at liberty to divulge the team, but that deal is expected to be announced around or in June.

Another team, the Calgary Flames, are actively entertaining the possibility of selling around 15 to 30 percent of their club and have been engaged in discussions with prospective groups. At least four other clubs, that I am aware are, have been doing the same.

Strike while the iron’s hot, right?

[Joborule]

Wonder if that would include the Southerners.

[DeluxeMoustache]

They can sell to the Saudi’s, to go with their stake in the wheat board

[getbak]

Not really shocking.

Of the current owners, Edwards is the only one under 70 and Libin is over 90. They need some fresh blood.

[Tbull8]

Mentioned this a couple weeks ago that I had heard rumblings about this happening. I would expect some local guys to get in on it

[Sylvanfan]

Once the shovels are in the ground for the new arena, it may come together pretty quickly after that.

[surferguy]

Can that 30% be Edwards? Please

[activeStick]

CP group buy at several tiers! 1st - $45,000, 2nd - $25,000, 3rd - $5,000. Let's go! All votes on business decisions once we become minority owners will be conducted in a CP Vote, remotely.

[Paulie Walnuts]

I’ve put in an offer. Edwards just has to pay his taxes.

[Strange Brew]

I wonder how many megamillionaires are attracted to the idea of being a minority owner. Although it would be good to get in before the next few expansion teams. Shielding expansion revenue from HRR is a great situation for the owners.

[dissentowner]

I imagine the guy from Etsy is still interested.

[getbak]

Last year, the sale price for 90% of the Senators was reported to be $950 million USD -- meaning a franchise value just over $1.055 billion USD. Depending on the exchange rate of the day, that's about $1.4-1.5 billion CAD.

If we assume the Flames will have a similar value (and it might be much more factoring in the value of the arena deal and the other CSEC assets), 30% will cost around $450 million CAD.

[keenan87]

CP Group Buy?

How many members and how much do we each need to contribute?

[Locke]

Originally Posted by getbak

Not really shocking.

Of the current owners, Edwards is the only one under 70 and Libin is over 90. They need some fresh blood.

Yeah, I was thinking the same thing. Selling off shares now makes a lot of sense.

The same thing is happening in soccer in England.

Owners are getting old, operating costs are going up, who knows whats going to happen with future TV revenues and at least the NHL doesnt have a problem with Saudi ownership....Yet...

[jg13]

Originally Posted by dissentowner

I imagine the guy from Etsy is still interested.

Endy?

[Rutuu]

Being a minority share holder in an entertainment business with Murray Edwards would make me madder than the last 20yrs of playoff performances as a Flames fan.

[Locke]

Originally Posted by Rutuu

Being a minority share holder in an entertainment business with Murray Edwards would make me madder than the last 20yrs of playoff performances as a Flames fan.

Why? Everything else aside its like buying a stock that does nothing but appreciate in value.

[TrentCrimmIndependent]

What's 30% of the Flames in a dollar figure?

Haven't looked up recent valuations of the NHL clubs.

[Rutuu]

Originally Posted by Locke

Why? Everything else aside its like buying a stock that does nothing but appreciate in value.

In this hypothetical I've spent $450m - $600m for 30% of the franchise, and all I get is:

1. Be back seated, as I don't own a controlling stake
2. My money grows slower than other private equity opportunities, or general equities markets
3. Franchise ownership is all about capital appreciation, so I have to eat the cash burn when we spend to the cap and don't make the playoffs

As a controlling stake investment the Flames have a lot going for them though.

1. Canadian market, and one of the fastest growing Canadian Markets, with the ability to grow it
2. A low bar with the fanbase to improve the product and grow the size of wallet with an improved experience
3. A likeable management team that could be properly empowered

[Locke]

Originally Posted by Rutuu

In this hypothetical I've spent $450m - $600m for 30% of the franchise, and all I get is:

1. Be back seated, as I don't own a controlling stake
2. My money grows slower than other private equity opportunities, or general equities markets
3. Franchise ownership is all about capital appreciation, so I have to eat the cash burn when we spend to the cap and don't make the playoffs

As a controlling stake investment the Flames have a lot going for them though.

1. Canadian market, and one of the fastest growing Canadian Markets, with the ability to grow it
2. A low bar with the fanbase to improve the product and grow the size of wallet with an improved experience
3. A likeable management team that could be properly empowered

Oh I dont know that its that high.