Quote:
Originally Posted by FlamesAddiction
Honest question, but does franchise valuation really matter unless they are planning to sell the team? I would think that the higher it is in Calgary, the less likely they would be able to find local buyers even if they did try to sell, which may not be a good thing.
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Quote:
Originally Posted by Sylvanfan
I guarantee you the value matters to the owner of the Franchise and other owners too. These guys will borrow against the Franchise value to help fund other interests.
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Ah...beaten to it.
Especially back when interest rates were insanely low. You had a high-value asset that could back a preposterously low financing deal that could then be used to generate better returns.
Furthermore, and this is the main point of owning a Sports team, the team is currently worth ~$855M.
They bought it in 1980 for $14M.
Take that in the context of any other asset like a house or something and you can see that they're doing very, very well on their investment, especially since the operations revenue generally covers the operations costs other than losses some years and profits in others.
Its just this thing that you own that more or less takes care of itself while appreciating in value.
So obviously if you can add value without adding cost (arena partnership) then its even better.