Flames STH meeting

[Hot_Flatus]

Originally Posted by FlameZilla

Very interesting:



The bolded is fantastic news.

With a new building, improving tv revenues and obviously the on ice product improving, I really wouldn't be surprised if that value is north of 600M in a few years.

[Hot_Flatus]

Originally Posted by RM14

Interesting Fact: I learned first hand that Calgary Flames ownership in its entire history has not withdrawn a single dollar of team profits for their personal income.

I don't know how you would possibly know that, but if true its not surprising considering how much money they make in other ventures.

[Vulcan]

Originally Posted by Hot_Flatus

With a new building, improving tv revenues and obviously the on ice product improving, I really wouldn't be surprised if that value is north of 600M in a few years.

If the team is worth $420M now and after a new arena is built for $500M and the team is only than worth $600M, a new arena doesn't make sense to be financed by the owners.

[Envitro]

But I would also imagine that in the $420mm valuation it was taken into consideration the fact that the Flames don't currently own their arena.

[Vulcan]

Originally Posted by Envitro

But I would also imagine that in the $420mm valuation it was taken into consideration the fact that the Flames don't currently own their arena.

As far as I know, the Flames may as well own the Dome because they pay next to nothing for it but either way, spending $500M on a new arena won't increase the Flames value to $920M. That would make it the 2nd most valuable franchise in the League ahead of the Rangers and that valuation won't happen. This is why the Flames owners won't build the arena with their own money. It doesn't make financial sense.

[Envitro]

Absolutely, wasn't arguing that they would get the full value of their investment.

This is probably why they want the taxpayers to kick in at least half

[Major Major]

Originally Posted by RM14

Interesting Fact: I learned first hand that Calgary Flames ownership in its entire history has not withdrawn a single dollar of team profits for their personal income.

Ya, I'll take your word on it, but this is pretty incredible. You'd have to think that this team was making money hand over fist all throughout the eighties. Probably lost a lot for 10 years or so, then I believe have been profitable (some years more than others) since then. Is it possible that these guys simply have an arena warchest and will build it with minimal tax payer $?

If they were to come out and say that they have the majority of the money secured for this venture, I think they may envision a landscape where profits for the next 30-40 years would be astronomical. And if this were the case, I wouldn't blame them one bit for maximizing those profits.

[Erick Estrada]

Outside of maybe the NFL and some soccer teams professional sports franchises are typically terrible investments.

[Vulcan]

Originally Posted by Erick Estrada

Outside of maybe the NFL and some soccer teams professional sports franchises are typically terrible investments.

It isn't always the yearly profit of the franchise that makes sports teams good investments it's the increasing value of the franchise. The Flames cost $16M in 1980 and now are worth $420M. That's according to Forbes, an annualized change of 10%.