Quote:
Originally Posted by dustygoon
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."
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That Mississauga valuation is crazy. They draw no fans as they are about the 50th priority in the market. Its not like they are landing big sponsorship money or TV money. London or Kitchener are worth WAY more than Mississauga (and probably Ottawa as well which plays in a garbage arena).