Quote:
Originally Posted by Bingo
And as I said it's a pretty small year over year change to ponder vs the losses of the investment to build an arena. Even if it went up by 5% a year over the next five years you'd only see the value at an uptick of roughly $85M vs the $285M investment hit to build the thing on their own.
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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.