Discussion in 'The Business of Hockey' started by Mess, Jun 1, 2005.
Here are some details from the Bain buyout offer and the value of franchises .
Are they sure they didn't get the Flames and Oilers mixed up?
PS&E paid $100M for the Lightning in 1999. In 2002 they had already added $16M in improvements to the arena. This deal values the team at $68M? So much for the value of franchises going up...
Yup, I'm sure our owner is going to go for this!
I was thinking the exact same thing...
And where do they get 4.3 billion? I count 4 even (2.25+1+.75)
one thing that is being slightly over looked is that the offer incluede the arenas--which are the real money maker--some teams do not own the arenas they play in
I think it has to do with an ability to make money. Over the last 7 years, the Flames have lost a lot of money (even including their stanley cup run). Whereas the Oilers have been a little on either side of the line since the EIG took over.
If they are assigning the exact same value to the Montreal and Toronto franchises it shows that they may not be in the right business for them.
Read it again. Nowhere does it say they're offering each team the same amount. Both teams are in the highest tier, which on avg would be $225 million. The article does some of it's own math to come up with the $225 million, and even qualifies it by saying "if the pool were to be divided equally".
Obviously the Oilers are the better team historically. There is more to market in the long run and they have financially been a sound franchise.
This deal would never get 30 team support. The leafs can be more profitable than 225 million dollars over a long term period because they are always going to be a profitable franchise. And with a salary cap their finances are only going to go up because you are smoking glue if you think the NHL is actually going to lower ticket prices drastically...if at all.
Totally agree. This type of move would take a massive overpayment and IMO the numbers they are throwing around are nowhere close. It'd probably take closer to 7 Bil total and I can't see that happening. This stuff makes for good conversation but little else.
The leafs are the richest team in the league no doub about it, however, people seem to deny how rich the Habs are. Gillett said it himself(although he is a bold faced liar when he says he "loses" money), they get tons of revenue, they are one of the top 5 most profitable teams.