Future of franchise values.\

Discussion in 'Fugu's Business of Hockey Forum' started by WC Handy*, Jun 17, 2005.

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  1. WC Handy*

    WC Handy* Guest

  2. WVP

    WVP Registered User

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    That was uplifting.
     
  3. Jarqui

    Jarqui Registered User

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    To me, this was a significant part of the foundation of why the owners could absorb the losses that they did, a big reason why they were so resolute during the dispute and the pot of gold for them at the end of the CBA rainbow when the stormy dispute ended.
     
  4. Mess

    Mess Global Moderator

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    That is true that was always the pot of gold at the end of the Rainbow ..

    The part that this CBA is exaggerating is day to day expenses and the need to make profit as well as gain on Franchise Values thus the 54% linkage ..

    A Hard Cap system alone would increase Franchise value.

    Real Estate works that way .. You may lose in the short term by having to carry a mortgage and pay the tax, insurance and interest in hopes the market continues to rise and that you will exceed those cost of doing business expenses to reap the long-term rewards.

    Will the profit from the Sale of a Franchise in the Future be considered Hockey related revenue and effect the Hard Cap ??
     
  5. nyrmessier011

    nyrmessier011 Registered User

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    This CBA is a gold mine for franchise values. That's the main reason I believe the owners locked the players out. The league had a crappy CBA and despite each team losing a couple million, that is not important compared to the ten's of millions they are losing in franchise values. The Yankees lost money last year, but Steinbrenner is still golden because his franchise value keeps going up. Franchise values are the name of the game, and with linkage, there's a bright future for the owners.
     
  6. NYR469

    NYR469 Registered User

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    selling franchises at a profit is the reason why despite all the claims of how much $$ they are losing there are always new owners lined up to buy the teams. you often wonder why a seemingly smart businessman would buy into such a bad business but it is because they know they will suffer small loses now to turn a big profit later...

    it is expected that franchise values will go up after the cap is in place and i've heard rumors that several owners are hanging around for that boost in value so they can sell--we've already seen the canucks and ducks sold and now st louis is on the market...

    but the fact that owners are looking to unload so quickly makes me wonder if they think that the boost in value will only be artifical and temporary. i mean if the lauries were convinced that under the new system the blues would turn a profit, wouldn't it make sense for them to hang around a few more years to recoup their loses in recent years before selling?? by selling now and running it makes me wonder if they think the projected profits won't be coming so they want to get out of dodge before potential buyers realize.
     
  7. zeke

    zeke #freeVladdy

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    .

    This wasn't "a" reason - this was the "only" reason.
     
  8. shakes

    shakes Pep City

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    I don't think I could count as high as the Leafs are worth now and post-CBA
     
  9. mooseOAK*

    mooseOAK* Guest

    No, because the person holding the profit (or loss) won't be part of the league any longer.
     
  10. Mess

    Mess Global Moderator

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    I Thought so ..

    Those Sly owners are not so dumb after all ..

    Step 1:
    Lockout the NHL

    Step 2:
    Reform the NHL so that Franchise values go up exponentially.

    Step 3:
    Take the money and run from the resale while simultaneously not hindering your fellow owners to follow suit.

    Its as easy as 1 -2 - 3 to see through the plan though......as its all at the expense of their disposal short term assets that Fans call Hockey players..
     
  11. mooseOAK*

    mooseOAK* Guest

    In the unlikely event that NHL franchises increase in value exponentially it will be because the owners did their jobs right. Therefore they should be rewarded.
     
  12. Beukeboom Fan

    Beukeboom Fan Registered User

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    Whose turned a profit on the sale of their franchise? Both the Sabres and Sens sold at rock bottom prices when you consider they also acquired the buildings the teams played in. It's not like there are people that just can't wait to buy a NHL franchise. The Stars have been for sale for a long time now - haven't they?

    The Ducks payed $52M for their "franchise fee" in 1993, and sold the team for $75M after supposedly loosing a ton of money during the 12 years they were owned by Disney.
     
  13. no13matssundin

    no13matssundin Registered User

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    Cry me a river, Justin Timberlake.

    Those "short term assets" are going to benefit signifigantly, as did NFL players, especially as franchise values and revenues increase. Remember, not only is there a tie of revenues for the owners, but also for the players: and if I remember correctly, 54% of an ever growing pie that was at one time over 2 Billion Dollars, is more than what those horrible terrible evil *insert waste of adverb here* owners will ever get from the same pie.

    When the players retire well off for life and get to golf all day afterwards for their years of hard earned play, im sure they'll think with great ire upon those nasty bad owners and all that revenue certainty and life long fiscal stability they brought to their pockets... especially the ones who were bought out at 2/3rd the value for sitting at home for a year or playing in Europe.

    And you're darn tootin' those owners will laugh all the way to the bank...thats why its called a BUSINESS.

    Dont like it? Start up TheMessenger Hockey League a set up your own economic system but be sure to post here how evil you are when you want to turn a profit, ok? Thanks.
     
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