OT: 2021 Forbes NHL Franchise Valuations

[Micklebot]

New franchise valuations are out,

The Business Of Hockey

NHL Team Values 2021: New York Rangers Become Hockey’s First $2 Billion Team

Sens up 95 mil to $525 despite an estimated 30 mil in operating loses last year (that's actually 6th best in the league, most teams lost far more)...

#28 Ottawa Senators

Team Value: $525M Calculated December 2021
Owner(s): Eugene Melnyk
Championships: 0
Year Purchased: 2003
Price Paid: $92M
Revenue: $67M
Operating Income: -$30M
Debt/Value: 38%
Player Expenses: $47M
Wins-to-player cost ratio: 94
Revenue per Fan: $21
Metro Area Population: 1.4M
Media partners: tv: TSN, RDS; radio: TSN 1200 AM, 94.5 Unique FM

Revenues and operating income are for the 2020-21 season, including postseason and applicable non-NHL arena revenue (excluding the Seattle Kraken expansion fee) and are net of revenue sharing and arena debt service. All figures are in U.S. dollars based on the average exchange rate during 2020-21 season.
The Senators were the only Canadian team to have separate helmet ads for home and away games. Ottawa donned the Bell Canada logo on their home helmets, and featured a Canadian Tire logo on their away helmets. Both companies are existing sponsors, with Bell holding the naming rights to the Senators practice facility and Canadian Tire the rights to the team's arena.

Click to read more...

 

[Emerica]

Third lowest one-year change % outside the 1billion+ teams.

Every team valued below us have higher one-year and five-year change %.

 

[Golden_Jet]

Weird how Tampa after back to back cups is 650 million (20th).
Which is how much Seattle paid for an expansion team.

 

[Micklebot]

I thought this quote in the write-up was interesting

Last week, a person who advises buyers and sellers of hockey teams on valuations told Forbes that the Coyotes were for sale, with the idea that the league would allow the team to eventually move to an arena that would be built in Houston. (The team quickly denied that account, saying in a statement, “The Coyotes are 100% committed to playing in Arizona.”) Setting that speculation aside, we value the Coyotes at $400 million based on their current arena situation in Glendale, Arizona. But a buyer with an option to move the team would certainly pay much more than that.

 

[Emerica]

Weird how Tampa after back to back cups is 650 million (20th).
Which is how much Seattle paid for an expansion team.

They went from 305M in 2016 to 650M in 2021.

They were considered a smaller market team till recently and were valued less than us as late as 2017. At this rate, give them a few years and they’ll be top-10 in valuation. Incredible what winning does to a franchise

 

[AchtzehnBaby]

I thought this quote in the write-up was interesting

$850M to move to Quebec

 

[Xspyrit]

Sell Sens Sell!

I mean, Go Sens Go!

Mr. Melnyk now is the time, the team is on the rise, soon the rink will be filled at full capacity again, you can sell and take it easy, you did your part

Thanks

 

[Micklebot]

$850M to move to Quebec

Moving to Quebec would be at best shuffling the deck chairs on the Titanic. They are more likely to reduce the cost from 525 than increase it to 850 if they tie a sale to moving to Quebec. Quebec isn't happening. If the NHL approves a move of the sens, it would be to a market that will increase the stability of the league, not one that will be a lingering headache for them.

 

[bert]

Weird how Tampa after back to back cups is 650 million (20th).
Which is how much Seattle paid for an expansion team.

I think the size of market and how new the arena is are huge driving factors in the evaluations when I took a deeper dive.

 

[bert]

Moving to Quebec would be at best shuffling the deck chairs on the Titanic. They are more likely to reduce the cost from 525 than increase it to 850 if they tie a sale to moving to Quebec. Quebec isn't happening. If the NHL approves a move of the sens, it would be to a market that will increase the stability of the league, not one that will be a lingering headache for them.

There is absolutely no chance Ottawa moves to Quebec. Simple economics and figures like population size, average dual home income and believe it or not there is way more private here. Ottawa is growing at an exponential rate right now, they cant build homes fast enough. In 10 years the Ottawa Gatineau area will be more than double the size of Quebec City. Anyone that thinks this is a bad hockey market and its not the result of the second worst rink in the league from an access and entertainment point of you plus ownership burning this to the ground needs to take some business courses.

 

[DaveMatthew]

$850M to move to Quebec

That is an impossibility.

True North paid $170M for the Thrashers and an additional $60M as a relocation fee. That's a price that makes sense when moving a team to a small Canadian market.

Nobody is paying close to $1B to move an NHL team to a Canadian city with 800k people. It's not happening.

 

[AchtzehnBaby]

Moving to Quebec would be at best shuffling the deck chairs on the Titanic. They are more likely to reduce the cost from 525 than increase it to 850 if they tie a sale to moving to Quebec. Quebec isn't happening. If the NHL approves a move of the sens, it would be to a market that will increase the stability of the league, not one that will be a lingering headache for them.

Was talking about the yotes

 

[SPF6ty9]

They went from 305M in 2016 to 650M in 2021.

They were considered a smaller market team till recently and were valued less than us as late as 2017. At this rate, give them a few years and they’ll be top-10 in valuation. Incredible what winning does to a franchise

I think winning might be a small part and a lot of it is this:

“Building Half a City” with Jeff Vinik & Bob Buckhorn

Water Street Tampa

What I would give for an owner like Vinik...

 

[Micklebot]

Was talking about the yotes

Still trading one headache for another, Houston is far more likely, and wouldn't require moving a team from the west to the east.

Quebec isn't going to get any serious consideration, it just doesn't make sense.

 

[Gil Gunderson]

Remember when the Sens were like the 13th most valuable team like 12 years ago?

Just incredible ownership by Eugene over that period.

 

[Joeyjoejoe]

Sell Sens Go

 

[Zorf]

Imagine running a NHL franchise straight into the ground, lighting it on fire, and still making over 5X your initial investment?

I get that his ego wants to be a NHL owner, but I'm amazed he hasn't cashed out and laughed his way to the bank.

 

[GCK]

That is an impossibility.

True North paid $170M for the Thrashers and an additional $60M as a relocation fee. That's a price that makes sense when moving a team to a small Canadian market.

Nobody is paying close to $1B to move an NHL team to a Canadian city with 800k people. It's not happening.

But posters expect someone to spend well over 1 Billion to buy the Sens and build a new rink in a small market with limited growth potential.

 

[GCK]

I think winning might be a small part and a lot of it is this:

“Building Half a City” with Jeff Vinik & Bob Buckhorn

Water Street Tampa

What I would give for an owner like Vinik...

This is exactly what Lebreton was supposed to be.

Neither Ruddy nor Melnyk could pull it off. I doubt Vinik could have got Jimbo to commit what the Tampa mayor did. The NCC should just have picked Devcore

 

[Bileur]

Remember when the Sens were like the 13th most valuable team like 12 years ago?

Just incredible ownership by Eugene over that period.

I don’t doubt it but I don’t remember. Happen to have a link?

 

[DaveMatthew]

But posters expect someone to spend well over 1 Billion to buy the Sens and build a new rink in a small market with limited growth potential.

Except nobody is expecting that.

A) the team, in its current state, isn’t worth over $600M
B) a new arena, regardless of where it is, will not be 100% privately funded by an ownership group, and it doesn’t whether that group is Melnyk or someone else

Lebreton is essentially being offered up on a silver platter. That Melnyk has not been able to make it happen is on him. And at the end of the day, it’ll cost him (or his estate) hundreds of millions.

It might be in 2 years, or it might be in 10, but this franchise will be sold one day. It’d be significantly more valuable with a new downtown arena.

But honestly, whatever. This city would be fine without an NHL team. People would move on. Most already have. The only person who stands to, and is, losing, financially, is Melnyk (and his family).

 

[Emerica]

I don’t doubt it but I don’t remember. Happen to have a link?

Closest i could find

15th in 2013
15. Ottawa Senators

16th in 2012
16. Ottawa Senators

17th in 2011
17. Ottawa Senators

17th in 2010
In Pictures: Hockey's Most Valuable Teams

 

[PlayersLtd]

Except nobody is expecting that.

A) the team, in its current state, isn’t worth over $600M
B) a new arena, regardless of where it is, will not be 100% privately funded by an ownership group, and it doesn’t whether that group is Melnyk or someone else

Lebreton is essentially being offered up on a silver platter. That Melnyk has not been able to make it happen is on him. And at the end of the day, it’ll cost him (or his estate) hundreds of millions.

It might be in 2 years, or it might be in 10, but this franchise will be sold one day. It’d be significantly more valuable with a new downtown arena.

But honestly, whatever. This city would be fine without an NHL team. People would move on. Most already have. The only person who stands to, and is, losing, financially, is Melnyk (and his family).

How is Melnyk losing money when the franchise is going up in value hand over fist every year? As long as he can finance the operating losses he stands to gain considerably with every year he can cling to it. I suppose there may be diminishing returns as the CTC approaches the end of it's useful life but still... That's the sad reality.

 

[SensPerpetualRebuild]

The Canadian

Closest i could find

15th in 2013
15. Ottawa Senators

16th in 2012
16. Ottawa Senators

17th in 2011
17. Ottawa Senators

17th in 2010
In Pictures: Hockey's Most Valuable Teams

The Canadian dollar was close to even with the US dollar over the 2010-14 period. It's been 0.75 - 0.80 since then. That's a factor. So a certain Habs fan that lives on Sussex can take some of the blame lol.