News Article: Expansion fee $500 Million ?

[Gee Wally]

http://www.bostonherald.com/sports/...n_yet_but_bettman_has_fee_in_mind_500_million


NEW YORK — NHL Commissioner Gary Bettman might not yet have anything definitive to say about expansion, though he does have a fee in mind.

How's $500 million sound?

Without committing to what the price might be, Bettman told a meeting of Associated Press Sports Editors on Friday that he considers a half-billion dollars to be a reasonable figure.

"From your question, you seem to be inferring that would be a lot of money for an NHL team," Bettman said, when the $500 million figure was posed to him. "I happen to believe that number — not that I'm confirming or denying it — would be not a lot of money. I think NHL franchises should be worth at least that."

Click to read more...

 

[Dellstrom]

"From your question, you seem to be inferring that would be a lot of money for an NHL team," Bettman said, when the $500 million figure was posed to him. "I happen to believe that number — not that I'm confirming or denying it — would be not a lot of money. I think NHL franchises should be worth at least that."

Well, only 11 teams are... and 7 aren't even worth half that.

I definitely think expansion teams should be dead serious, and be willing to invest in their team, but $500m isn't "reasonable". Why do that when you could buy 18 other teams for less? I'm not going to pretend I know a lot about business on as wide of a scale as the NHL, and how expansion/relocation works 110%, but it doesn't appear reasonable with a quick look at this.

 

[BruinsNeedaRussian]

Well, only 11 teams are... and 7 aren't even worth half that.

I definitely think expansion teams should be dead serious, and be willing to invest in their team, but $500m isn't "reasonable". Why do that when you could buy 18 other teams for less? I'm not going to pretend I know a lot about business on as wide of a scale as the NHL, and how expansion/relocation works 110%, but it doesn't appear reasonable with a quick look at this.

Definitely seems high, but valuations are not that simple especially in the case of a franchise that has yet to produce any cash flow. However, it doesn't seem like all owners buy franchises for the investment, so could see highly overvalued expansion fees.

Just curious does anyone know where to find how much previous expansion fees have been?

 

[Dellstrom]

Definitely seems high, but valuations are not that simple especially in the case of a franchise that has yet to produce any cash flow. However, it doesn't seem like all owners buy franchises for the investment, so could see highly overvalued expansion fees.

Just curious does anyone know where to find how much previous expansion fees have been?

A $400 million franchise fee would be five times higher than the $80 million fee charged both the Minnesota Wild and Columbus Blue Jackets in 2000, the last time the league expanded

http://nypost.com/2014/11/12/nhl-picks-owners-for-likely-vegas-team/

That's @ $400m, too... So 6.25x higher.

 

[BruinsNeedaRussian]

http://nypost.com/2014/11/12/nhl-picks-owners-for-likely-vegas-team/

That's @ $400m, too... So 6.25x higher.

Sounds like you were even more right than I expected

Would think the next market will not be Minnesota caliber either.

 

[bb_fan]

I cant believe that with watered down product we see now they are even still discussing this.... ever...

 

[BruinsNeedaRussian]

I cant believe that with watered down product we see now they are even still discussing this.... ever...

Product may be watered down, but the talent certainly is not. Would love to see a higher impact from star players again and watering down the talent helps with that. Worry I would have is can the NHL support 32 teams? Already have some markets critically struggling.

 

[ap3lovr]

Product may be watered down, but the talent certainly is not. Would love to see a higher impact from star players again and watering down the talent helps with that. Worry I would have is can the NHL support 32 teams? Already have some markets critically struggling.

I certainly think they can support 32 teams, they just need to rethink the location of their franchises. Pheonix, Florida, and Carolina should be relocated to London, Berlin, and Bern. Put 1 more team in Prague and 1 in Las Vegas. Then you no longer have attendance issues for many teams. The focus can then be made on improving the on ice product and the televised product.

 

[OConnellsProtege]

I certainly think they can support 32 teams, they just need to rethink the location of their franchises. Pheonix, Florida, and Carolina should be relocated to London, Berlin, and Bern. Put 1 more team in Prague and 1 in Las Vegas. Then you no longer have attendance issues for many teams. The focus can then be made on improving the on ice product and the televised product.

London, Berlin and Bern? That would make for one hell of a brutal travel schedule. I can't tell if you're serious...

 

[ashnathan]

The NHL arent gonna go to Europe the travel time would be silly.

 

[Replicator]

The NHL arent gonna go to Europe the travel time would be silly.

7-8 hrs to/from Boston
9.5-10.5 to/from Vancouver
11+hrs to/from L.A.
(For reference, Vancouver-Boston ~7.5hrs)

Not horrible for most teams travelling from North America for 3 games/season. Very bad for those 3 teams travelling regularly from Europe back to here.

Untenable for the playoffs as they are currently scheduled.

 

[Replicator]

http://www.bostonherald.com/sports/...n_yet_but_bettman_has_fee_in_mind_500_million


NEW YORK — NHL Commissioner Gary Bettman might not yet have anything definitive to say about expansion, though he does have a fee in mind.

How's $500 million sound?

Without committing to what the price might be, Bettman told a meeting of Associated Press Sports Editors on Friday that he considers a half-billion dollars to be a reasonable figure.

"From your question, you seem to be inferring that would be a lot of money for an NHL team," Bettman said, when the $500 million figure was posed to him. "I happen to believe that number — not that I'm confirming or denying it — would be not a lot of money. I think NHL franchises should be worth at least that."

Thanks for posting this. I have to read these things, because when Bettman opens his mouth, I just can't make out the words -- it always sounds to me like some kind of undifferentiated squealing weasel sound. Perhaps I should have my hearing checked.


And $500million? what a racket. I assume that part of this is to prevent the crazy fraud that nearly took over the Islanders years back. But still - that's just extortion. That's the kind of money that a new franchise might never earn back.

 

[thegodfather]

When this news came out I automatically checked my bank account and found out sadly that I'm exactly four million nine hundred and ninety nine thousand dollars short of the fee.

Damn

 

[jgatie]

I certainly think they can support 32 teams, they just need to rethink the location of their franchises. Pheonix, Florida, and Carolina should be relocated to London, Berlin, and Bern. Put 1 more team in Prague and 1 in Las Vegas. Then you no longer have attendance issues for many teams. The focus can then be made on improving the on ice product and the televised product.

Yes because England (No Olympic team for years), Switzerland (highest finish 5th way back in 1952 Olympics) and Germany (again, highest finish 5th) are much bigger hockey hotbeds than Finland, Sweden and Russia.

Where do people get these ideas???

 

[rudos1]

Well since I surely don't want any more expansion that's a GREAT number go for 1 billion dude!!

 

[OutspokenMinority*]

i can go in for like $100.00 but it'll take me about a week to get it. i'm good for it though.

 

[ksp1957]

Hopefully, we won't see expansion come to fruition. 500 million should scare off most of the prospective owners. Besides we already have an expansion team in Boston, we don't need any more.

 

[ap3lovr]

London, Berlin and Bern? That would make for one hell of a brutal travel schedule. I can't tell if you're serious...

Not sure that I care about the travel schedule if I'm an owner and looking at making more money.

 

[ap3lovr]

Yes because England (No Olympic team for years), Switzerland (highest finish 5th way back in 1952 Olympics) and Germany (again, highest finish 5th) are much bigger hockey hotbeds than Finland, Sweden and Russia.

Where do people get these ideas???

SC Bern averages over 16k fans per game.
Elsbaren, Koiner, and Adler average 35,700 between the 3 of them per game.
London is a key travel hub and has the population to support a team.

Finland and Sweden both don't bring enough attendance to warrant an expansion at this time. I got these "ideas" from doing research.

 

[jgatie]

SC Bern averages over 16k fans per game.
Elsbaren, Koiner, and Adler average 35,700 between the 3 of them per game.
London is a key travel hub and has the population to support a team.

Finland and Sweden both don't bring enough attendance to warrant an expansion at this time. I got these "ideas" from doing research.

Your research sucks, because you forgot to include the financials. I'm sure Phoenix and Miami were banging out the house for their $3/ticket minor league teams, yet they can't sell tickets to an NHL priced product even with the lowest prices in the league. So if you think for one minute that an NHL franchise will thrive in Switzerland, London, and Germany charging NHL prices to pay NHL salaries, you are nuts.

 

[MtlBoxFan]

This is madness beyond sparta.

Basically, no expansion.

Which hockey market is going to spend 500 million$ knowing they will barely be profitable afterwards?

If you exclude a Toronto part 2 team, no other hockey market that doesn't already have a team would make back that 500 million any time soon.

Hartford?
Quebec city? You have the fans but not the money.
Las Vegas? You have some money but no fans.

500 million. 500 million!!!

 

[Shadowthrone]

Your research sucks, because you forgot to include the financials. I'm sure Phoenix and Miami were banging out the house for their $3/ticket minor league teams, yet they can't sell tickets to an NHL priced product even with the lowest prices in the league. So if you think for one minute that an NHL franchise will thrive in Switzerland, London, and Germany charging NHL prices to pay NHL salaries, you are nuts.

If at all, an NHL franchise wouldn't do better in Russia , Finland or Sweden than in Germany or Switzerland due to the reasons already mentioned.
Ap3lovr's absolutely right in this regard.

And Germany won the bronze medal in 1932 and 1976, your research sucks!