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Originally Posted by Rutuu
A few things that we need to be clear on as a fanbase:
1.The Flames are mid pack for capital value according to forbes, and the assumption is they are break even to profitable under the current arrangement.
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IIRC, Forbes had the Flames' operating income at a whopping $400,000 in the last non-COVID year. So… break-even if costs don't go up (which they always do) and revenue isn't affected by COVID (which it has been every year since).
Quote:
Originally Posted by Rutuu
There is a LOT of capital out there starving for yield.
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See the above. A hockey team in the post-COVID era is not where you go looking for yield. And don't tell me about the alleged value of the franchise: that's fool's gold in a business where only a handful of franchises are making any worthwhile amount of money. Cord-cutters are still cutting their cords, local media revenue is on the way down, gate revenue (70% of the business in a non-COVID year) is uncertain at best. The fan base is aging rapidly, as young people are less interested in sports generally than they used to be.
In these circumstances, a small-market pro sports franchise is not a sound investment. At best it's a toy for a billionaire to play with, and we're starting to see a new generation of billionaires who don't care about sports franchises because they are too busy playing with their private space programs.
I believe the North American pro sports business has already passed peak asset value. Assuming that any old NHL club can sell for a billion dollars because John Henry paid $900 million for the Penguins is wishful thinking.