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Finger Cookin · 09-20-2017, 01:45 PM

This isn't surprising. The Toronto, Montreal, and NYR franchises have made the lion's share of NHL revenue (and especially profits) for years and years and years now.

Just because I'm sure the discussion will go there, I wonder what franchise losses on arena would look like if the appreciation in franchise value over time is considered. I'm not sure how you would isolate the growth in value of a franchise with a new arena vs one without.

Going through the Forbes numbers (older ones, I haven't looked up any past 13-14), the Flames franchise grew in value from $200M in 08-09 to $450M in 13-14 (so over a 5 year period). That is something like a 17.61% annual appreciation compounded over 5 years. EDIT: I looked up the newest Forbes valuation on the Flames, and it seems to be $410M for 15-16. (a 7 year period). That's still a 10.8% annual appreciation compounded over 7 years. That suggests that the franchise worth $410M today might be worth >$685M in 5 years when this hypothetical arena might be ready for use.

Even though the gain on the franchise value can't be realized without selling, surely the increase in value could be used to secure some kind of financial investment to offset or exceed the NPV loss that is based solely on construction costs of a facility.

09-20-2017, 01:45 PM	#8
Finger Cookin Franchise Player Join Date: Jun 2014 Exp:	This isn't surprising. The Toronto, Montreal, and NYR franchises have made the lion's share of NHL revenue (and especially profits) for years and years and years now. Just because I'm sure the discussion will go there, I wonder what franchise losses on arena would look like if the appreciation in franchise value over time is considered. I'm not sure how you would isolate the growth in value of a franchise with a new arena vs one without. Going through the Forbes numbers (older ones, I haven't looked up any past 13-14), the Flames franchise grew in value from $200M in 08-09 to $450M in 13-14 (so over a 5 year period). That is something like a 17.61% annual appreciation compounded over 5 years. EDIT: I looked up the newest Forbes valuation on the Flames, and it seems to be $410M for 15-16. (a 7 year period). That's still a 10.8% annual appreciation compounded over 7 years. That suggests that the franchise worth $410M today might be worth >$685M in 5 years when this hypothetical arena might be ready for use. Even though the gain on the franchise value can't be realized without selling, surely the increase in value could be used to secure some kind of financial investment to offset or exceed the NPV loss that is based solely on construction costs of a facility. Last edited by Finger Cookin; 09-20-2017 at 03:01 PM.