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Originally Posted by EldrickOnIce
Flames ownership has not suffered terrible hardship
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Agreed and that's not what I said at all.
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Originally Posted by EldrickOnIce
The 16 M investment in 1980 is now worth about 420 M.
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Do you know how much capital they had to put into the business over the years, particularly in the dark days? I don't but I know they were losing money. Do we know that someone would buy this franchise for $420M today? It's a loosey-goosey valuation based on a magazine isn't it? Even if they paid $16M for a business in 1980 and that business is now worth a net $420M, that's an annualized return of 10%. That's pretty much what you can expect from a diversified portfolio of public assets, certainly not making money cash over fist for an entrepreneurial business. And we know it's less than that because they had to put capital into the business over the years. I would surmise it's max 5% annualized.
Quote:
Originally Posted by EldrickOnIce
There were some dark years, but yearly revenues have also been very significantly positive overall.
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Yes revenues are positive but that doesn't mean they're making money to the bottom line, not by a long shot.
All I'm saying is that this is far from a lucrative business for them.