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Originally Posted by Resolute 14
There is a fair bit of stupid both ways presented there. What really stood out to me was Sam Berg's afadavit claim arguing the Niagara Ice Dogs must be loaded with money because the team filled its arena beyond capacity from 2008-09 to 2013-14. The percent capacity argument is almost always made in disingenuous fashion, so I checked... the team played in an arena that sat less than 3000 fans in those years.
In terms of the guesswork involved there, it is very easy to see why the Hitmen would be the most valuable between the OHL and WHL. I would wager the Quebec Remparts would be the most valuable had the Q been included.
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The valuation assumptions are brutal....one team sale every two years, etc. Sample size is useless to base anything upon. Then to use some IRR number based on market size?!
"Mongeon wrote that his study was not scientific, and that he relied on assumptions based on the confirmed sale prices of 11 CHL franchises since 1990. The professor created a rate of return model that accounted for a team’s market size.
For instance, the OHL’s Mississauga franchise, Mongeon wrote, sold for $4.56 million (expressed in 2015 dollars) in 2003 and $10.68 million in 2006, resulting in a 138 per cent return on investment."