Quote:
Originally Posted by GioforPM
I actually think the league doesn’t allow NHL owners to use shares in their teams as collateral because then the NHL would lose control over who owns the team (if the security is enforced). I suspect the CSEC shareholder agreement is similar.
And conversely even if it was allowed, since the NHL controls who can be an owner, lenders would be very reluctant to take such collateral.
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The NFL explicitly allows this.
https://www.forbes.com/sites/mikeoza...h=344a4c0f5014
https://theathletic.com/1299155/2019...nchises/?amp=1
I’d be surprised if nhl teams didn’t have some debt on their balance sheets as owners would be interested in getting some liquidity out of their investment.
But it’s kind of a technical argument that has nothing to with net worth and little to do with the economics of owning a team which are stunningly great.
You just can’t ignore the shocking increase in franchise value when evaluating these businesses.