Leafs, Habs top tier in Bain bid

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Mess

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Here are some details from the Bain buyout offer and the value of franchises .

Leafs, Habs top tier in Bain bid

Canada's premier NHL teams valued at US$225M apiece by private-equity bidders

Paul Brent and Theresa Tedesco
Financial Post
May 28, 2005

US$4.3-billion private-equity bid for the National Hockey League priced the Toronto Maple Leafs and Montreal Canadiens at a league-high US$225-million apiece, more than double the value placed on the NHL's four other Canadian teams. The revised offer by Bain Capital LLC and Game Plan LLC -- up US$500-million from one in March -- values the league's 30 franchises in one of three groups.

The storied Montreal Canadiens, winner of a league-leading 24 Stanley Cups, and the Toronto Maple Leafs, one of the NHL's richest franchises, could split US$2.25-billion in a 10-team group, or US$225-million apiece if the pool was divided evenly.

In Bain's first bid, for example, the Toronto Maple Leafs were valued at US$105-million.

Three other Canadian teams, the Ottawa Senators, Edmonton Oilers and Vancouver Canucks are in a proposed second-tier of nine clubs that would split US$1-billion, ascribing a US$111-million value to each.

A third group of 11, which includes 2004 Stanley Cup finalists Calgary Flames, and Cup winning Tampa Bay Lightning, would split US$750-million under the proposal, valuing each team at US$68-million.

Full Story :

http://www.canada.com/montreal/montrealgazette/news/sports/story.html?id=d9c37633-7edb-4590-8c52-d59b472235cc
 

Boltsfan2029

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Jul 8, 2002
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The Messenger said:
A third group of 11, which includes 2004 Stanley Cup finalists Calgary Flames, and Cup winning Tampa Bay Lightning, would split US$750-million under the proposal, valuing each team at US$68-million.

PS&E paid $100M for the Lightning in 1999. In 2002 they had already added $16M in improvements to the arena. This deal values the team at $68M? So much for the value of franchises going up...

Yup, I'm sure our owner is going to go for this! :shakehead
 

Jumptheshark

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Oct 12, 2003
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one thing that is being slightly over looked is that the offer incluede the arenas--which are the real money maker--some teams do not own the arenas they play in
 

dawgbone

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Jun 24, 2002
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I think it has to do with an ability to make money. Over the last 7 years, the Flames have lost a lot of money (even including their stanley cup run). Whereas the Oilers have been a little on either side of the line since the EIG took over.
 

mooseOAK*

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If they are assigning the exact same value to the Montreal and Toronto franchises it shows that they may not be in the right business for them.
 

CGG

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mooseOAK said:
If they are assigning the exact same value to the Montreal and Toronto franchises it shows that they may not be in the right business for them.

Read it again. Nowhere does it say they're offering each team the same amount. Both teams are in the highest tier, which on avg would be $225 million. The article does some of it's own math to come up with the $225 million, and even qualifies it by saying "if the pool were to be divided equally".
 

London Knights

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This deal would never get 30 team support. The leafs can be more profitable than 225 million dollars over a long term period because they are always going to be a profitable franchise. And with a salary cap their finances are only going to go up because you are smoking glue if you think the NHL is actually going to lower ticket prices drastically...if at all.
 

mackdogs*

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London Knights said:
This deal would never get 30 team support. The leafs can be more profitable than 225 million dollars over a long term period because they are always going to be a profitable franchise. And with a salary cap their finances are only going to go up because you are smoking glue if you think the NHL is actually going to lower ticket prices drastically...if at all.
Totally agree. This type of move would take a massive overpayment and IMO the numbers they are throwing around are nowhere close. It'd probably take closer to 7 Bil total and I can't see that happening. This stuff makes for good conversation but little else.
 

Habsaku

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The leafs are the richest team in the league no doub about it, however, people seem to deny how rich the Habs are. Gillett said it himself(although he is a bold faced liar when he says he "loses" money), they get tons of revenue, they are one of the top 5 most profitable teams.
 
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