Thread: [CP Story] Calgary Can't Afford an Arena
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Old 09-20-2017, 02:34 PM   #21
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Quote:
Originally Posted by Finger Cookin View Post
The least valuable team in 15-16 was the Hurricanes at $230M, which is up from $177M in 08-09. That's 4.01% annually. The least valuable team in 13-14 was the Panthers at $190M, which is up from $159M in 08-09, a 3.63% annual return. The Rangers are estimated to be worth $1.25B in 15-16, from $416M in 08-09 - a 24.61% annual return.

Even averaging out the appreciation of a club in 15-16 gets to a return of about 4.2%, and that was with the dollar in the tank around $0.76 to a USD, compared to about $0.815 today, which would account for a lot of the decrease in value of CA based teams year-over-year.

I think it's not unreasonable to suggest that a 5% annual appreciation in value of a CA based NHL team is on the low side, especially over the medium term.
Once again I come back to what I'd be comfortable with, and personally I fear pro sports has jumped the shark.

NFL stadiums not full. Backlash on moving franchises. Huge TV deals that have led to layoffs in the rights holders. I don't know if this gravy train is expanding as it did from 2009 to 2014.

Holding somewhat stagnant may be a better number, but even with a modest grown of say 5% and running it out for the whole life of the new building at 35 years, and then selling it that year the discounted value of that increase is only $62M

Doesn't do much to the $285M loss to go it alone.
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