CHL Franchise Value

Discussion in 'Canadian Junior Hockey' started by jj252525, May 13, 2007.

  1. jj252525

    jj252525 Registered User

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    Hey guys, i'm doing a little research. Does anyone know where to find CHL Team values, and how much they world sell for? Thanks.
     
  2. WheatiesHockey

    WheatiesHockey Registered User

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    The actual valuation of a team would be based on its earnings or potential future earnings. Sports teams do not have many hard tangible assets so the price of a team would be based enirely on its capacity to earn revenue streams. You could get a good idea of the relative value of a CHL franchise by looking at expansion fees charged to new franchises coming into their respective leagues in the past few years. By media accounts Edmonton Oil Kings paid about $5-6 million to join the WHL for the upcoming season.
     
  3. otthockeyfan

    otthockeyfan Registered User

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    The 67s are worth 2.5 million.
     
  4. KBF111

    KBF111 Registered User

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    Well last summer Tom Gaglardi's group offered 6 million for the Blazers.
     
  5. Quiksilver*

    Quiksilver* I'm always right.

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    The 67's would be worth atleast double that, and I wouldn't be suprised to see them worth 10 Million+.
     
  6. stpats

    stpats Registered User

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    The 67's are probably the most valuable team in the CHL. They usually lead the CHL in attendance, and could have even more attendance if they played in a larger rink. All that, and they have an NHL plus a second CHL team (Gatineau) in their metro area. Ottawa is a terrible CFL market, but they're as good as it gets for hockey.

    The most valuable team in the Q is Halifax, with Moncton not far off.

    Not sure about the most valuable team in the W.
     
  7. stpats

    stpats Registered User

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    Oh, and London is right up there near Ottawa as well, and have led the CHL in attendance recently. We'll see how their attendance goes when the "new rink smell" wears off...
     
  8. bigdoubled

    bigdoubled Registered User

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    The John labatt centre opened in 2002 so the new rink smell has worn off but London is top in attendance for having a winning team. Four straight ohl first place finishes in the last few years help. The question will be what happens when they don't have a winning season and the bandwagon empties.
     
  9. trahans99

    trahans99 Registered User

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    I thought I saw an article or rumor that the Hunters were going to sell the Knights for $15-$18million after winning the memorial cup 2 years ago.

    The Hunters bought the Knights and Ice House back in 2000 for 3.0 or 3.5m (can't remember). I think that if they were to sell now they'd be able to fetch between
    $12-$15m (I think that $15-$18 was a little high 2 years ago).
     
  10. tomahawk

    tomahawk Registered User

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    I would have to say that based on history, attendance (averaging 10,441 per game last season) and star power behind the bench with Patrick Roy, that the Québec Remparts would challenge Halifax (averaging 7,340 per game last season) for that title in the Q and Moncton (averaging 4,747 per game last season) would be my choice for third place.
     
  11. MikeC44

    MikeC44 Registered User

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    Bobby Smith paid aorund $3.5M for 64% of the Halifax Mooseheads in 2003.

    St. John's and Saint John both paid $3M for their expansion teams in 2004.
     
  12. mikethompson

    mikethompson Registered User

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    the Giants have got to be up there, second biggest rink in the CHL i beleive, brand new screen, dressing romms are renovated, ron toigo has put a boat load of money into the colesium. the have the best practice facility in the CHL and it rivals most NHL teams practice facilitys. They just won the MEM CUP, won the WHL Championship last year. In less then 10 years have drafted, molded, and produced current NHLers and soon to be NHLers. The Giants are probably worth the most in the CHL but I dont have an exact number.
     
  13. Falconone

    Falconone Registered User

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    valuation

    Wheatieshockey is 'right on'. To place valuation on a franchise, one would need to know a 'few' facts first. Gross revenue, sources of revenue, tangible assets, variable costs etc. Knowing that the franchise rights may be around 3.0-3.5 Million is a start. You would also have to know if there was any real estate included and what its value is too. Otherwise you are just paying for 'goodwill'. Seeing the financial statements of the prospective team would also be important. Income and (loss) statements, balance sheet and any contractual commitments would also be necessary.

    One 'quck & dirty' way is to estimate the annual gross revenues. Yearly attendence figure X an average ticket price to start with, add an amount for sponsor, advertising, food and beverage and miscellaneous revenues and then multiply by 'form factor' (in valuing RE its often 10) and you end up with a ball park number (no pun intended) I'm not sure what the 'form factor' might be for sports franchises though.

    Ultimately, "what someone is willing to pay" is hard to estimate. The value of the Knights after winning a cup two years ago may be the high point. They are probably worth less now.

    F1
     
  14. sbtatter

    sbtatter Registered User

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    As far as the dub goes I'd guess that Calgary would be the most valuable, closely followed by Vancouver, and soon, Edmonton...
     
  15. canuck8mitchell

    canuck8mitchell Registered User

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    easily
     
  16. SimonTemplar

    SimonTemplar Registered User

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    Perhaps your right but consider last season London began the year with 450 in a waiting list. Today that list continues to climb well over a 1000 now.

    It's becoming clear in London if you give up your seast now forget about getting them back. Even if they hit a low spot for two years giving up those seats now is a mistake.

    London has climbed well over the 10 million mark but when it's a franchise that makes gobs of money why sell it. My guess is the franchise stays in The Hunter Family for a long time.

    They may end up in the NHL but would not part with their team.

    Most CHL franchises start at 6 mill now.
     
  17. 3 Minute Minor

    3 Minute Minor Registered User

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    I did a google search and this came up. I know this thread is 5 years old but I'm interested in seeing if anyone knows what a CHL franchise goes for these days.

    The question is not, "What CHL team is worth the most."
     
  18. ZombieRegDunlop

    ZombieRegDunlop Registered User

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    While I appreciate what you say the question "is not", it's still relevant to what you're asking. Are you asking sale value price or an expansion fee? Because the difference in price between buying the London Knights or the Baie-Comeau Drakkar is in the millions.
     
  19. wjhl2009fan

    wjhl2009fan Registered User

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    I would not say Ottawa is a terrible Cfl market its had very good year with great support the last years of the team ahd more to do with owners then the fans.
     
  20. 3 Minute Minor

    3 Minute Minor Registered User

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    I'm asking a basic range. If London is worth 50000million and Baie Comeau is worth 500K, I'd like to hear something like "CHL teams range from 50000million to 500K" (Obviously a silly example to show my point).

    If there was an insanely average team in the CHL, that is basically not worth the most but not worth the least, how much would that franchise be sold for today? I've never seen a QMJHL/WHL/OHL team for sale on kijiji but I'm just wondering if there are any teams solid recently that we know the price of. I can't really find CHL team values anywhere so I figured I'd ask here and someone may know something.
     
  21. Tigers1992

    Tigers1992 Registered User

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    Mississauga recently sold for roughly $8 Million. Thats probably the price tag for solid franchises in the OHL.
     
  22. Crottenham

    Crottenham Registered User

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    That number clearly must have been pulled out of the air. Not sure how a money-losing franchise like Mississauga warrants $8M! Certainly it is well-known the cash flows are negative, would love to see the model that justifies this type of valuation.
     
  23. IHaveNoCreativity

    IHaveNoCreativity Registered User

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    Missy went for 8M ???
     
  24. Tigers1992

    Tigers1992 Registered User

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    I think you know my posts enough to know I don't pull things out of mid air.

    EDIT: And here is the link
    http://www.ottawasun.com/2012/03/24/cheapseats-melnyk-tips-hat-to-sens

    "Melnyk is on the verge of closing a deal to sell the OHL’s Mississauga St. Michael’s Majors. Sources say the price will be between $7.5 million and $8.5 million."
     
    Last edited: Aug 17, 2012
  25. Tigers1992

    Tigers1992 Registered User

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    So Ottawa is a good CFL market, and the GTA is a bad market for CHL.

    No bais in these posts at all ;)
     

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