How many $ is McDavid worth?

[McGoMcD]

Total fun game here. Some people said Katz paid of the NHL. clearly not true, but just pretend he could have. How much would you have given Bettman, if your Katz to get McDavid. I honestly think it would be some where about 100 mill. pretty sick number, but probably some where in there.

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[OilTastic]

50 mil in his pocket! and when his entry is up, McD will likely command $10 mil per, minimum.

 

[McspOiler]

30 mill 1 per team and 1 for bettman

 

[McShogun99]

Total fun game here. Some people said Katz paid of the NHL. clearly not true, but just pretend he could have. How much would you have given Bettman, if your Katz to get McDavid. I honestly think it would be some where about 100 mill. pretty sick number, but probably some where in there.

How much does it cost to purchase an expansion team? Something like 275 million? That's how much someone would pay if they were guaranteed 1st pick this year.

 

[McGoMcD]

How much does it cost to purchase an expansion team? Something like 275 million? That's how much someone would pay if they were guaranteed 1st pick this year.

am I missing something, why would McDavid be worth the same price as an expansion franchise?

 

[Fixed to Ruin]

this much...

 

[Cultra]

 

[czar99]

How much does it cost to purchase an expansion team? Something like 275 million? That's how much someone would pay if they were guaranteed 1st pick this year.

Try 500 million! Bettman just stated that last week.

 

[thadd]

am I missing something, why would McDavid be worth the same price as an expansion franchise?

Because some people think he saved our franchise.

Only way to get it done right is to bribe Betman. There are tons of other teams out there who'd try to do the same thing if they could.

200M in Betman's pocket. He's got the upside to save a franchise before he's even there. That says a lot to me.

 

[elmeroil]

Haha that's awesome!

 

[the4thlinegrinder]

Well if you consider Crosby may have saved the Penguins from moving to Kansas City and they have since built a new arena, its got to be a lot.

 

[McShogun99]

am I missing something, why would McDavid be worth the same price as an expansion franchise?

How many potential owners would be willing to buy a franchise in a non traditional hockey market if they were guaranteed a generational player?

 

[Mc5RingsAndABeer]

I'd say market value would be about $500m. Toronto, NYR, and Montreal are worth $1-1.3b.

 

[azashi]

McDavid is easily worth several billion to a franchise like Toronto.

They could jack up ticket prices after a season even as bad as this one. Like, a LOT. Let's say on average $25/seat/game. x20,000 seats, x40 games (rounded for ease of calculation) and that's a $20,000,000 increase in revenue per season, based just off of this season. Let's say over his career that McDavid ends up being worth $50/seat/game, on average. That's $40,000,000 per season, times 15 seasons for his prime, bringing the number to $600,000,000 just in ticket sales. Let's estimate an extra $100,000,000 in concession sales and prices.

We can't really estimate the increased value of a TV contract easily, but I suspect it'd be fair to suggest $100,000,000 on the low end. Total thus far $800,000,000.

How about jerseys? I'm going to suggest an easy 2 million jerseys over his 15 years, league-wide (remember all the Toronto ex-pats littering rinks across Canada and the US). $150 per jersey, $300,000,000. Total $1.1B.

McDavid-specific and general-boost-to-Leafs-sales T-shirts, bobbleheads, figurines, posters, keychains, ****whats - probably another billion all told.

Any given Cup (let's say 3) is probably worth another $100 million. Throw in another 10 ancillary playoff runs of various sizes, each worth $20 million, and were looking at a final grand total of $3 billion.

In Edmonton? Cut that by at least 80%, purely based on population.

I'm probably under-estimating the effect of McDavid on the Leafs (not accounting for inflation, under-estimating value of ticket hikes, low-balling TV deals and national TV revenue deal share), and under-estimating the % revenue lost by coming to Edmonton. Edmonton's population is ~1 million. The GTA is 6 million. The GTA total is only from Burlington-Oshawa and Toronto-Markham. Doesn't include Hamilton, Barrie, KiWa, London, Sudbury, Windsor (which is probably more a Red Wings town), Northern Ontario, Kingston, etc. The Oilers arguably have only 10-15% of the market reach that Toronto does.

 

[McGoMcD]

McDavid is easily worth several billion to a franchise like Toronto.

They could jack up ticket prices after a season even as bad as this one. Like, a LOT. Let's say on average $25/seat/game. x20,000 seats, x40 games (rounded for ease of calculation) and that's a $20,000,000 increase in revenue per season, based just off of this season. Let's say over his career that McDavid ends up being worth $50/seat/game, on average. That's $40,000,000 per season, times 15 seasons for his prime, bringing the number to $600,000,000 just in ticket sales. Let's estimate an extra $100,000,000 in concession sales and prices.

We can't really estimate the increased value of a TV contract easily, but I suspect it'd be fair to suggest $100,000,000 on the low end. Total thus far $800,000,000.

How about jerseys? I'm going to suggest an easy 2 million jerseys over his 15 years, league-wide (remember all the Toronto ex-pats littering rinks across Canada and the US). $150 per jersey, $300,000,000. Total $1.1B.

McDavid-specific and general-boost-to-Leafs-sales T-shirts, bobbleheads, figurines, posters, keychains, ****whats - probably another billion all told.

Any given Cup (let's say 3) is probably worth another $100 million. Throw in another 10 ancillary playoff runs of various sizes, each worth $20 million, and were looking at a final grand total of $3 billion.

In Edmonton? Cut that by at least 80%, purely based on population.

I'm probably under-estimating the effect of McDavid on the Leafs (not accounting for inflation, under-estimating value of ticket hikes, low-balling TV deals and national TV revenue deal share), and under-estimating the % revenue lost by coming to Edmonton. Edmonton's population is ~1 million. The GTA is 6 million. The GTA total is only from Burlington-Oshawa and Toronto-Markham. Doesn't include Hamilton, Barrie, KiWa, London, Sudbury, Windsor (which is probably more a Red Wings town), Northern Ontario, Kingston, etc. The Oilers arguably have only 10-15% of the market reach that Toronto does.

Thanks, was waiting for some one to do some in-depth analysis. The more I think about the the dollar amount is pretty insane really.

 

[9GWG9]

McDavid is easily worth several billion to a franchise like Toronto.

They could jack up ticket prices after a season even as bad as this one. Like, a LOT. Let's say on average $25/seat/game. x20,000 seats, x40 games (rounded for ease of calculation) and that's a $20,000,000 increase in revenue per season, based just off of this season. Let's say over his career that McDavid ends up being worth $50/seat/game, on average. That's $40,000,000 per season, times 15 seasons for his prime, bringing the number to $600,000,000 just in ticket sales. Let's estimate an extra $100,000,000 in concession sales and prices.

We can't really estimate the increased value of a TV contract easily, but I suspect it'd be fair to suggest $100,000,000 on the low end. Total thus far $800,000,000.

How about jerseys? I'm going to suggest an easy 2 million jerseys over his 15 years, league-wide (remember all the Toronto ex-pats littering rinks across Canada and the US). $150 per jersey, $300,000,000. Total $1.1B.

McDavid-specific and general-boost-to-Leafs-sales T-shirts, bobbleheads, figurines, posters, keychains, ****whats - probably another billion all told.

Any given Cup (let's say 3) is probably worth another $100 million. Throw in another 10 ancillary playoff runs of various sizes, each worth $20 million, and were looking at a final grand total of $3 billion.

In Edmonton? Cut that by at least 80%, purely based on population.

I'm probably under-estimating the effect of McDavid on the Leafs (not accounting for inflation, under-estimating value of ticket hikes, low-balling TV deals and national TV revenue deal share), and under-estimating the % revenue lost by coming to Edmonton. Edmonton's population is ~1 million. The GTA is 6 million. The GTA total is only from Burlington-Oshawa and Toronto-Markham. Doesn't include Hamilton, Barrie, KiWa, London, Sudbury, Windsor (which is probably more a Red Wings town), Northern Ontario, Kingston, etc. The Oilers arguably have only 10-15% of the market reach that Toronto does.

Voodoo math at its best however your 80 % reduction for Edmonton is low. We accomplish all except the tv deal and a few less trinkets.

 

[The Nuge]

Honestly, he's probably not worth all that much. There's probably not a single other fanbase (including Toronto) that could be this bad, for this long, and still have such a loyal fanbase, that fills the arena every game. He would completely change a team like the Coyotes or Panthers who don't have as much of a following, and therefore would be worth a lot more to them.

 

[Gret99zky]

This.

http://www.pagetutor.com/trillion/index.html

For you visual type learners.

 

[sheeve]

Hmmm this much?

 

[Soundwave]

He will make the Oilers the highest revenue generating team in the West provided Chiarelli can do his job and make the team at least decent.

They will become like a full on Toronto/Montreal West in revenue terms IMO when you factor in the new arena.

That's not such a bad situation for the league so long as Toronto can also get it together and start making the playoffs in a couple of years.

 

[Jumptheshark]

well--oiler sell out all games already, Season tix prices were already announced for this year

Oilers will make money in indirect ways

 

[Soundwave]

well--oiler sell out all games already, Season tix prices were already announced for this year

Oilers will make money in indirect ways

New arena pricing is where you're going to see the Oilers rack it in, also for corporate boxes and sponsorship, they are going to charge through the roof now.

 

[BlowbyBlow]

I'd say market value would be about $500m. Toronto, NYR, and Montreal are worth $1-1.3b.

If the price was that much it would be basically buying something that someone else wouldn't be able to have...which happens in business a lot. Any other team it would literally sink them. This would do nothing for these organizations and many others Mcdavid as much of a great talent he is in Canada you have to take into account that NYR, Toronto, MTL are the biggest public relation cities in the world. A great quote from a successful business man in relation to when something is already successful and people are buying that product/service (if it has total market share) you can't sell something everyone's buying already - that relates to these cities.

Hockey is big in these cities and its cultural- so you take into account the richness of these organizations, plus p.r. and history they can make Mcdavid more of a household name but not significantly more. How many times your wife or gf knows of a guy just because you live in a hockey mad city - almost all the time. Mcdavid would do nothing for a Canadian market value wise either. People buy jerseys in Edmonton and mcdavid will sell more than anyone on the Oilers now, but those same people would still be buying jerseys. Mcdavid certainly revitalizes the fan base and it has been at a stalemate, so less season tickets cancelled, more renewed and purchased but this is more based on a stagnant product - - - if the team is doing well merchandise and tickets are sold regardless.

It would mean nothing in non traditional organizations - a Carolina, Tampa, Nashville, Florida, Arizona franchise would be absolutely abysmal. This on the opposite side of the hockey spectrum. you have to remember outside of the border how many people know the name Mcdavid outside hockey fans. He's not like a Lebron, or Tiger, or people that non sports fans know the name, and would create a brand.

For teams in the middle "bubble teams" so to speak. Outside of history there are teams that have no history of winning at all like St. Louis, and Buffalo, so they have history, but not success. For the business side of things it would be very beneficial (this is taking into account they win, and are more relevant - we can't forget what Kane and Toews did for Chicago) if they did this cause eventually they would get there money back. Big names and winning are synonymous with one another Jordan - Bulls, gretzky - oilers, ect.

Team that has brief history, and no history of winning, your not going to change your fortunes. Minnesota wild, (yea yea north stars) but its a different fan base now, same as Winnipeg they both have the happy to have a franchise outlook and they cheer there teams on no matter what.

Every other team would be stupid to consider paying such a steep price.

I guess what I am saying is does a team make Mcdavid a brand or does the name Mcdavid make the team a brand. Big teams with rich history of success, and a culture don't need to make a brand.

Remember when pittsburgh got Lemieux he made them a brand, Crosby revitalized the brand by creating a sentimentalism and he had his own brand already (but he's a very small exception) . Lemieux made the brand based on winning.
Same as Gretzky here. Hockey is different than any other sport in NFL (Manziel, Manning, Luck) they almost have brands before they even play a game, hockey
has guys who are marketable Stamkos, Tavares but it says more about there pocket book and making them richer by sponsors, and endorsements then it does about the sport.

Part of it is culture, hockey fans are about the stars but we care about the individual team as a whole. NBA sells individuals, and so does mlB, nfl sells individuals (yet fans know about the unknown players that make a team) Hockey brands its game on players, and yet if your an Oiler fan you respect a Tavares, Stamkos, ect but you would never buy a jersey. Other sports (take nfl out again) unless your a diehard and even those guys its not uncommon to see a games room with a Jordan jersey, and Larry bird one, and a magic one, ect.

 

[Oscar Acosta]

Any season ticket that wasn't about to be renewed in Edmonton was within 24 hours.

Jersey sales will be through the roof. Broadcast rights to show the Oilers are going up. Merchandise will be insane.

I've been an Oilers fan since the early 90s when I had a Jason Arnott jersey. Buckled down and bought a Mike Peca jersey during the 06 run. Always said I would feel weird to have a jersey of someone younger than me. Day after lottery I was in the Oilers Store putting my name on the list for a McDavid Jersey.

Darryl Katz won a lottery of money again in life. We won a lottery of hope that was dead.

 

[azashi]

Voodoo math at its best however your 80 % reduction for Edmonton is low. We accomplish all except the tv deal and a few less trinkets.

Do you have any idea how freaking huge Toronto is? How rabid that fanbase is? How many huge corporations are based there and pumping their their money into that market? Edmonton isn't even 20% the size of that market, never mind all the Toronto fans in other cities.