Brampton Beast looking for local investors

[Flukeshot]

https://www.inbrampton.com/brampton-beast-hockey-club-officially-up-for-sale

49% of the team is up for sale and looking for local investors. Previously the team successfully petitioned for $1m in city funding so it can't be a very profitable venture.

It is a decent option for family fun in Brampton as they typically have more than just the game going on for kids. But I wouldn't be throwing money at the team without expecting a loss.

Click to read more...

 

[uncleben]

Would still love MLSE to invest (ie. buyout the Beast) and brand them in the Maple Leafs family.

 

[CHRDANHUTCH]

Would still love MLSE to invest (ie. buyout the Beast) and brand them in the Maple Leafs family.

I don't know if that's possible.....

 

[CrazyEddie20]

I don't know if that's possible.....

It's totally possible. It's just a matter of if they want to throw the money away as an expense of developing players, or if they'd rather let the Solar Bears owners throw money away to develop their players.

 

[My Cozen Dylan]

It's totally possible. It's just a matter of if they want to throw the money away as an expense of developing players, or if they'd rather let the Solar Bears owners throw money away to develop their players.

If a player is on an AHL contract playing in the ECHL, the AHL team pays the salary. So, in this case, MLSE is picking up the tab on any Solar Bears players signed to AHL deals (or, somehow, if an NHL contract ends up down here).

 

[210]

If a player is on an AHL contract playing in the ECHL, the AHL team pays the salary. So, in this case, MLSE is picking up the tab on any Solar Bears players signed to AHL deals (or, somehow, if an NHL contract ends up down here).

ECHL team is responsible for the first $525 of an assigned player's salary...but the crux of your point is still correct.

 

[Cyclones Rock]

"Looking for local investors" means that money is running out and/or the ownership has already decided that its going to pull the plug in a short time frame.

This franchise seemed like a bad idea from jump street.

The ECHL will be at less than 20 teams in 5 years. Book it.

 

[Cacciaguida]

"Looking for local investors" means that money is running out and/or the ownership has already decided that its going to pull the plug in a short time frame.

This franchise seemed like a bad idea from jump street.

The ECHL will be at less than 20 teams in 5 years. Book it.

I hope MLSE buys the team, if they can spend that money on a singular NHL player they have the money to buy a secondary farm team, especially one so close to Toronto.

 

[210]

The ECHL will be at less than 20 teams in 5 years. Book it.

I'll gladly take the over...

 

[Flukeshot]

"Looking for local investors" means that money is running out and/or the ownership has already decided that its going to pull the plug in a short time frame.

This franchise seemed like a bad idea from jump street.

The ECHL will be at less than 20 teams in 5 years. Book it.

It is leaving a bad taste in the local tax payers mouth that they got $1m and are now selling half the team.

How much do echl franchises go for?

I've always agreed with the idea of Toronto owning one. Just extend their brand deeper into the community.

 

[210]

It is leaving a bad taste in the local tax payers mouth that they got $1m and are now selling half the team.

How much do echl franchises go for?

I've always agreed with the idea of Toronto owning one. Just extend their brand deeper into the community.

Last expansion team was $750K...

 

[Cyclones Rock]

It is leaving a bad taste in the local tax payers mouth that they got $1m and are now selling half the team.

How much do echl franchises go for?

I've always agreed with the idea of Toronto owning one. Just extend their brand deeper into the community.

It's the only possible way an ECHL team could work in the Toronto area-and maybe that wouldn't even be enough.

The ECHL does too much of the Fire-Ready-Aim model. A Toronto affiliation should have been secured before the franchise was even granted.

I doubt that most people care one way or another about the subsidy. Canada is pretty much into huge government as well.

 

[CrazyEddie20]

It's the only possible way an ECHL team could work in the Toronto area-and maybe that wouldn't even be enough.

The ECHL does too much of the Fire-Ready-Aim model. A Toronto affiliation should have been secured before the franchise was even granted.

I doubt that most people care one way or another about the subsidy. Canada is pretty much into huge government as well.

When the Beast organization was created, the ECHL wasn't exactly in any kind of position to dictate how it happened, being that the Beast were a CHL franchise back then -- not to mention the reality that it's pretty much impossible to sign an affiliation deal with an NHL team before there is an actual ECHL membership secured. But let's not let facts get in the way.

 

[Flukeshot]

I doubt that most people care one way or another about the subsidy. Canada is pretty much into huge government as well.

Living in Brampton I can tell you most of us would rather have the $2 off our annual property taxes than go to a privately owned team.

Apparently the owners did a great sell job and city council voted 9-2 in favour of the cash.

I think there was some regret in losing the Battalion which helped.

 

[Cyclones Rock]

Living in Brampton I can tell you most of us would rather have the $2 off our annual property taxes than go to a privately owned team.

Apparently the owners did a great sell job and city council voted 9-2 in favour of the cash.

I think there was some regret in losing the Battalion which helped.

No doubt the ownership capitalized on that loss.

As [MOD] Eddie pointed out so diplomatically, the Beast were part of the CHL. I had forgotten that. I still hold that the lack of a Leafs affiliation gives them no long term survival hope in a hockey market as crowded as the Greater Toronto Area. The fact that they still aren't speaks volumes about how foolish it was to start a team in Brampton without that vital affiliation.

 

[CrazyEddie20]

No doubt the ownership capitalized on that loss.

As [MOD] Eddie pointed out so diplomatically, the Beast were part of the CHL. I had forgotten that. I still hold that the lack of a Leafs affiliation gives them no long term survival hope in a hockey market as crowded as the Greater Toronto Area. The fact that they still aren't speaks volumes about how foolish it was to start a team in Brampton without that vital affiliation.

Facts are facts, bro.

 

[Sports Enthusiast]

"Looking for local investors" means that money is running out and/or the ownership has already decided that its going to pull the plug in a short time frame.

This franchise seemed like a bad idea from jump street.

The ECHL will be at less than 20 teams in 5 years. Book it.

As long as narcissist McKenna is still around unlikely.

 

[Flukeshot]

Last expansion team was $750K...

The story is starting to make it's local media rounds. The city funding was actually $1.5M over 3 years.

http://www.citynews.ca/2017/07/30/1619573/

The owner stated he believes ECHL franchises are worth $5M to $10M... despite the fact they've lost $4M since they were established.

Really sounds like they are trying to recoup some of their loses before it goes belly up in a year or two.

 

[CrazyEddie20]

As long as narcissist McKenna is still around unlikely.

Please, explain how Brian McKenna, whose job is to increase league revenues and "protect the shield," so to speak, is a narcissist. I can't wait to hear this answer.

 

[210]

The story is starting to make it's local media rounds. The city funding was actually $1.5M over 3 years.

http://www.citynews.ca/2017/07/30/1619573/

The owner stated he believes ECHL franchises are worth $5M to $10M... despite the fact they've lost $4M since they were established.

Really sounds like they are trying to recoup some of their loses before it goes belly up in a year or two.

The only way an ECHL team is worth significantly more than the expansion fee is if that team is making a reasonable profit. Otherwise it's worth little more than that $750K.

 

[CrazyEddie20]

The only way an ECHL team is worth significantly more than the expansion fee is if that team is making a reasonable profit. Otherwise it's worth little more than that $750K.

The only way an ECHL team is worth significantly more than the expansion fee is if that team is making an ASTRONOMICAL profit.

 

[royals119]

I would think any other assets they were selling along with the league franchise would have some minor value. Durable equipment like skate sharpener, glove dryer, washing machines, medical equipment, hot tubs, a bus, exercise bikes, weight room, etc might add some value - although they are all used, so not going to be worth full retail. I doubt any team has more than a couple hundred thousand in those items, and many have a lot less.

Any trademarks might have some value in a sale if it is a name and logo that have a good reputation. If a new owner doesn't buy the existing name they will have to spend the money to create and register a new one, so it has some value. I think that is why we have the Jacksonville Icemen instead of some other name and logo.

If the lease has good terms and is transferable that might have some value to a buyer who isn't moving the team.

The NHL Coyotes have been sold a few times for hundreds of millions of dollars, and they haven't made a profit since they arrived in Arizona, so some sports franchises have value without making a profit. That might be where the Beast owner is getting the idea that there is a value to the team beyond the franchise fee. I don't think this really applies to minor league teams, but I can see where someone would.

 

[210]

The only way an ECHL team is worth significantly more than the expansion fee is if that team is making an ASTRONOMICAL profit.

Of course not. It only has to be making money back at a rate in which the initial investment is paid off in a reasonable amount of time. So in its current market a team could easily have a value well over the $750K.

 

[CrazyEddie20]

Of course not. It only has to be making money back at a rate in which the initial investment is paid off in a reasonable amount of time. So in its current market a team could easily have a value well over the $750K.

Yeah. In this business, making enough money to pay off the initial investment in a reasonable amount of time constitutes an astronomical profit.

The true value of the business lies in the league membership. Skate sharpeners and the ephemera that are required to operate have some value, but they're usually just thrown in with the purchase so the idiot owner who just lost his a$$ operating an ECHL team at a six-figure loss for two years doesn't have to stack them up in his garage as a tangible reminder of his failure.

 

[Flukeshot]

I went to another Beast game with the family. It is fair value entertainment, $100 for 4 tickets, 4 hotdogs, 4 sodas, 2 popcorns.

However, they still aren't drawing enough fans to possibly keep this thing afloat long. Maybe being a Sunday afternoon game vs NFL playoffs on TV didn't help, but I would guess ~1,000 people showed up.