Sportico: 2023 NHL franchise values increased 30%+

[LadyStanley]

(Where's the Forbes rankings?)

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[StreetHawk]

It will come out. Is there much of a difference in the rankings between who is highest to lower at? Not the dollar amounts but is a team #11 on one ranking but #19 on the other?

 

[MMC]

 

[wildthing202]

I wonder how much the RSN stuff factors into this.

 

[Bixby Snyder]

Winnipeg not at the top of league franchise valuations is very not shocking.

 

[TheGreenTBer]

Winnipeg not at the top of league franchise valuations is very not shocking.

What? Of course they're not, they are a small market. They are good hockey fans but Winnipeg is small and even Winnipeg defenders would agree with that.

 

[blueandgoldguy]

What? Of course they're not, they are a small market. They are good hockey fans but Winnipeg is small and even Winnipeg defenders would agree with that.

The poster you are responding to has had a bug up their butt about Winnipeg for as long as I can remember and will find any excuse to disparage the city.

 

[AmabileCassarole]

Interesting graph, considering the Yankees were reported to have become the most valuable franchise in sports just last year. I guess something changed between then and now.

 

[TheGreenTBer]

The poster you are responding to has had a bug up their butt about Winnipeg for as long as I can remember and will find any excuse to disparage the city.

Oh wait a minute I recognize him now, he's the guy that basically has Canada in the same category as North Korea.

I'm definitely not humoring him anymore.

 

[Yukon Joe]

Winnipeg not at the top of league franchise valuations is very not shocking.

I'm a big Winnipeg fan and I totally agree: it's not shocking at all.

I feel like this wasn't the big burn you thought it would be.

 

[LadyStanley]

 

[Golden_Jet]

Winnipeg not at the top of league franchise valuations is very not shocking.

Thanks tips lol.

 

[Yukon Joe]

In fact I'm a little surprised they're ranked as highly as they are. I mean obviously Arizona is #32, I've never been bit on Florida's long-term future either, but ahead of Buffalo?

Several people pointed out that the valuation of the Sens is wrong though - Andlauer bought 90% of the team for $950 million, which means the entire team is worth $1.055 billion. And while normally these team valuations are estimates only, since you have the Senators sold just a month ago that pretty much is the definition of how much they're worth.

 

[TheLegend]

In fact I'm a little surprised they're ranked as highly as they are. I mean obviously Arizona is #32, I've never been bit on Florida's long-term future either, but ahead of Buffalo?

Several people pointed out that the valuation of the Sens is wrong though - Andlauer bought 90% of the team for $950 million, which means the entire team is worth $1.055 billion. And while normally these team valuations are estimates only, since you have the Senators sold just a month ago that pretty much is the definition of how much they're worth.

The fact Arizona went up 45% (as the list says) is pretty remarkable given their arena situation.

But if the $675 million figure is correct Alex Meruelo has more than doubled the value of the Coyotes than what Forbes estimated he paid for it.

 

[Yukon Joe]

The fact Arizona went up 45% (as the list says) is pretty remarkable given their arena situation.

But if the $675 million figure is correct Alex Meruelo has more than doubled the value of the Coyotes than what Forbes estimated he paid for it.

Not necessarily. I think it comes down to two rather simple things:

1. Mullett Arena has not been a complete disaster. With such a small capacity it's mostly full, and tickets sell at high prices. Last year was their first going into Mullett, so you had no idea how they would be doing.

2. Rising tide raises all boats. If the Senators have increased in value, then so have the Coyotes.

 

[Golden_Jet]

Not necessarily. I think it comes down to two rather simple things:

1. Mullett Arena has not been a complete disaster. With such a small capacity it's mostly full, and tickets sell at high prices. Last year was their first going into Mullett, so you had no idea how they would be doing.

2. Rising tide raises all boats. If the Senators have increased in value, then so have the Coyotes.

I think it comes down to being the same or hair over an expansion team cost.

 

[Yukon Joe]

I think it comes down to being the same or hair over an expansion team cost.

Nah - because an expansion team probably comes in around a billion.

If the Coyotes were going to be sold and relocated, I think Meruela gets something like $600 mil, while the league takes a $400 mil "relocation fee" to reflect that the team is more valuable somewhere other than Arizona.

 

[BKIslandersFan]

The fact that there are MLS teams worth as much as MLB teams let alone NHL teams is just wild to me.

 

[StreetHawk]

TB sold 40% stake in their team based on a $1.4 billion valuation. Exact values mean little until the teams are about to be sold. Interesting only in terms of the rankings and who is ahead or behind whom.

I do find it interesting that the NorCal MLB, NFL, and NBA team are in the top 5 of their leagues in valuations, yet SJ Sharks are #22. Always been in the 20's for them. Even when GS Warriors were still in Oakland and became a great team, they were ranked right near the top. Guess, with MLB/NFL there was a team in Oakland, but for the NBA, GS Warriors were the only team in the area.

Interesting the difference in the valuation ranking of the NorCal NBA vs NHL team.

 

[Shwan]

Not necessarily. I think it comes down to two rather simple things:

1. Mullett Arena has not been a complete disaster. With such a small capacity it's mostly full, and tickets sell at high prices. Last year was their first going into Mullett, so you had no idea how they would be doing.

2. Rising tide raises all boats. If the Senators have increased in value, then so have the Coyotes.

I would count being $10,000,000 in the red a pretty big disaster. Those numbers weren't seen since the darkest days of the Coyotes. Ticket revenue being up helps the league but the other costs and loss of several revenue streams is extremely painful for the team.

As far as the arena is concerned, after the 2021-22 season, the Coyotes were ejected from playing in what is now called Desert Diamond Arena in Glendale, Ariz., over a lease dispute. Last season, the Coyotes lost in excess of $10 million playing in Mullett Arena on the campus of Arizona State, even though seats were priced high—on average, $160 a ticket. Bettman called playing in the college arena at best a short-term solution, and they have one more season beyond this one to go on their lease.

Then to add further issues the Scripps' deal the team signed isn't paying out anywhere near the ~$18,000,000 Bally's was giving them every year so the losses for the team this year could realistically double to $20M depending if they stopped the bleeding elsewhere.

There's also several incorrect assessments from Sportico, like Coyotes operating Mullett Arena when it's OVG who operates it.

A plausible answer is between the extreme lack of transparency that's involved with anything Meruelo does and getting to the 32nd team, Kurt Badenhausen probably gave up on actually trying ascertain the true value of the franchise and is waiting for Meruelo to buy out minority owner Andrew Barroway which would give you a concrete valuation like it did with the Canadiens.

 

[Yukon Joe]

I would count being $10,000,000 in the red a pretty big disaster. Those numbers weren't seen since the darkest days of the Coyotes. Ticket revenue being up helps the league but the other costs and loss of several revenue streams is extremely painful for the team.

I think "not being a complete disaster" a was pretty measured comment, and hardly an endorsement of Mullett Arena. But nevertheless several people (myself included) thought it would be a complete apocalypse of a season for the Coyotes.

 

[Shwan]

I think "not being a complete disaster" a was pretty measured comment, and hardly an endorsement of Mullett Arena. But nevertheless several people (myself included) thought it would be a complete apocalypse of a season for the Coyotes.

That's absolutely fair but my next question would be what did you define as apocalypse? Did you think the arena wasn't going to get filled or something?

 

[PredsHead]

Sporticast 295: NHL Valuations Breakdown With Kurt Badenhausen

Here's a link to the Sportico podcast discussing the valuations. Some decent generic discussion in first 20 or so minutes, goes into the Coyotes specifically around 20:00 mark and then the top 5 valued teams after that.

 

[sawchuk1971]

bettman skeptical about sportico's analyis about franchise values..

bettman states that sportico undervalues NHL teams......

 

[Golden_Jet]

(Where's the Forbes rankings?)

Forbes usually comes out in December