NHL Team Valuations

[chedder]

Can we stop feeling sorry for Flames ownership and how they're just barely scraping by with the team? Revenue is up, valuation is way up. Ranked 19th with the worst arena in the league. Team is worth $870 million (u.s. I'd assume).

https://www.sportico.com/feature/mos...rt-1234693075/

[Tkachukwagon]

That's a lot of chedder.

[Ashasx]

people on this forum feel sorry for the Flames ownership group?

[agulati]

Decently vocal group on here who feel that the city has wronged the ownership group when it comes to the arena deal. That doesn’t necessarily mean that anyone thinks that the ownership is just scraping by

[Winsor_Pilates]

CP group buy?

[Monahammer]

Originally Posted by agulati

Decently vocal group on here who feel that the city has wronged the ownership group when it comes to the arena deal. That doesn’t necessarily mean that anyone thinks that the ownership is just scraping by

What? That has legit been BoLevi and others' argument for years. That the flames are not a money making team and thus public funds are required to preserve them in market. That keeps being verifiable disproven but people keep using it every time the arena discussion comes up.

[agulati]

Originally Posted by Monahammer

What? That has legit been BoLevi and others' argument for years. That the flames are not a money making team and thus public funds are required to preserve them in market. That keeps being verifiable disproven but people keep using it every time the arena discussion comes up.

You know what, fair enough. Let me clarify. There hasn’t been any “reasonable” claim on this.

[1qqaaz]

I'm always surprised that teams like Dallas and NYI have higher revenue than the Flames.

[Lanny_McDonald]

Misleading information is misleading. Valuations only mean something if you're willing to sell the asset and can find someone willing to give you what that valuation is set at. More importantly, the Flames were 21st in revenues last season. That's substantial, especially when you're spending to the cap and trying to make a profit. Most of the metrics places the Flames in the bottom third of the league, so everything is not roses as the OP would like to suggest. I would actually like to see what teams are turning a profit and what those profits look like. I suspect that the majority of the teams are not in positive situations, including the Flames, especially after the past few years. I seriously doubt that anyone invested in the Flames is doing a Scrooge McDuck money dive with the dollars coming in from this investment.

[topfiverecords]

Originally Posted by Lanny_McDonald

Misleading information is misleading. Valuations only mean something if you're willing to sell the asset and can find someone willing to give you what that valuation is set at. More importantly, the Flames were 21st in revenues last season. That's substantial, especially when you're spending to the cap and trying to make a profit. Most of the metrics places the Flames in the bottom third of the league, so everything is not roses as the OP would like to suggest. I would actually like to see what teams are turning a profit and what those profits look like. I suspect that the majority of the teams are not in positive situations, including the Flames, especially after the past few years. I seriously doubt that anyone invested in the Flames is doing a Scrooge McDuck money dive with the dollars coming in from this investment.

Ya, I feel sorry for billionaires whose NHL teams don’t turn a profit. How will they pay their rent and power bill next month. Living pay cheque to pay cheque.

[Lanny_McDonald]

Originally Posted by topfiverecords

Ya, I feel sorry for billionaires whose NHL teams don’t turn a profit. How will they pay their rent and power bill next month. Living pay cheque to pay cheque.

No one's asking you to feel sorry for them. It's called looking at the data and trying to understand the bigger picture. The data presented is misleading and incomplete. Valuations means SFA.

[agulati]

Sports franchises are generally not held by billionaires as major sources of revenue as part of their portfolio. They usually are more like vanity projects.

[CroFlames]

Originally Posted by Ashasx

people on this forum feel sorry for the Flames ownership group?

There's been outrageous takes on this site like people saying the mere fact the owners haven't moved the team is charitable to us fans because they could easily make more money if they relocated. Don't forget the "thank the owners" thread for allowing us consumers to buy their product. Such benevolence.

[Northendzone]

to me the valuation is somewhat useless, unless the owners are trying to sell.

flames 2021-22 revenue - $174m
Oilers 2021-22 revenue - $250m

that seems really surprising. i woner how accurate these figures are.

[1qqaaz]

Sports teams generally appreciate in value at a rate that heavily outpaces inflation or other investments.

Much of the reason for owning them is based on this appreciation. It's the primary reason, along with vanity, for owning a team. Much moreso than profits.

And I disagree with the notion that valuation is useless unless sold. It directly contributes to net worth. Creditors care. And they continue to appreciate.

Are Amazon stocks useless because they don't pay dividends? No, they good investments solely because of appreciation.

[Flames1217]

With a new arena I assume that the Flames land in the 8-11 range.

Crazy how much the value of NHL teams has skyrocketed in the past 20 years.

[ThePrince]

Originally Posted by topfiverecords

Ya, I feel sorry for billionaires whose NHL teams don’t turn a profit. How will they pay their rent and power bill next month. Living pay cheque to pay cheque.

Ok that's totally fine. And they don't have to feel sorry for you if they move the team that they own to a different city because they get favourable terms and a good chance at a better return on their investment. It is a two way street.

[CorsiHockeyLeague]

Originally Posted by agulati

Sports franchises are generally not held by billionaires as major sources of revenue as part of their portfolio. They usually are more like vanity projects.

Sure, but it's pretty reasonable to want to run them like a business and have them return some money. It doesn't have to be a cash cow.

[Geeoff]

I think that this is kinda neat but obviously if the Coyotes were sold and relocated, they would get a lot more than $465m. It would essentially be like getting an expansion team

[dustygoon]

They valued Calgary at 5.0x $174mm in revenue while they valued Deadmonton at 4.0x $250mm in revenue. That in itself tells me this is a thumb-in-the-air exercise and using revenue is a bad way to value.