BUX7PHX
Registered User
- Jul 7, 2011
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A part of the growth is due to an upswing in the product and the resulting sales prices and merchandise. That is about to take a hit for the Raptors while it's about to explode for the Leafs. Another part of the evaluation is the new naming rights deal which is a little skewed based on building shared with the Leafs. And lastly there is a better return on your investment with the Leafs if they cost the same, which I don't believe for a second they would. I understand the numbers quite fine.
Upswing in product and resulting sales and merchandise is also reflective of the global value of the sport in question, which is what I was trying to point out in the first place. Even if the Leafs have an upswing of 20% vs one of 10% for the Raptors- what does that mean globally? How many people globally do the Leafs impact? 5 - 10 million? Pretty sure that basketball is far more prevalent and given the wider audience, the Raptors are likely to be in the minds of 3 or 4x that 5 - 10 million number. That's simply the scale of the two sports globally. Hockey may mean more to Toronto and Canada, but on the global scale, it is a drop in the bucket relative to the NBA or other forms of professional basketball.
NBA players have come from 79 different countries. NHL players have come from 43 different countries, but I think that it is well noted that many more NHL players may be born in a foreign country and raised in Canada, whereas an NBA player born in a foreign country could probably have easier access to a basketball program vs having access to a hockey program in that country. I think that the globalization of the two sports are major impacts that you are either choosing to not include in your analysis or are simply forgetting about with regards to a valuation.