NHL Team Values 2020: Hockey’s First Decline In Two Decades

[Llama19]

To quote:

"On top of that, the league played only 85% of its regular season games with fans and is looking like it is still on thin ice: The 2020-21 season, which in a normal year would already be two months in, might not start until mid January, knocking off one-third of the 82-game regular season. Jam-packed arenas are a pipe dream and with them, the cash from tickets, suites, concessions, sponsorships and parking that account for more than 70% of total revenue in a typical season.

The result: the average NHL team value fell 2%, to $653 million, the first decline since 2001. Revenue for the league totaled $4.4 billion during the 2019-20 season, 14% less than the previous year. Operating income was $250 million, down 68%. That’s left many owners are scrambling for a lifeline."

Source: www.forbes.com/sites/mikeozanian/2020/12/09/nhl-team-values-2020-hockeys-first-decline-in-two-decades/?sh=72783b5d70dd

Click to read more...

 

[Golden_Jet]

Only 10 teams higher in value then Seattle paid to join.

 

[eddygee]

Looking at the report 15 teams lost money despite having 85% of the season completed under normal circumstances pre-covid. I can only begin to imagine the type of red ink blood bath that this year will have. I can kind of see why some of the owners didn't want to play this year. These losses by team weren't insignificant most were double digit losses ranging from 10-28 mil the smallest being a 3 mil loss. Imagine these multiplied 4-5 fold with 75 to 100% of the regular season COVID impacted vs just 15% and the playoffs last year.

The Forbes valuations for 2021 is where we will see the bigger hit. This is merely the glancing blow.

 

[Buffaloed]

NHL Team Values 2020: Hockey’s First Decline In Two Decades

The NHL elite are holding strong thanks to local TV deals, but the rest of hockey remains stuck in the penalty box.

The result: the average NHL team value fell 2%, to $653 million, the first decline since 2001. Revenue for the league totaled $4.4 billion during the 2019-20 season, 14% less than the previous year. Operating income was $250 million, down 68%. That’s left many owners are scrambling for a lifeline.

Teams with negative operating revenue in $millions
NYI 37.9
FLA 28.9
STL 8.2
MINN 6.2
TB 8.3
COL 10
ANA 9.1
CAR 15
NASH 13.4
OTT 2.9
WIN 7.6
BUFF 10.9
CBJ 10.3
FLA 28.9
ARI 17

Average team debt rose from $127 to $144 million

The NHL is reportedly looking to the private placement market for more debt and it's expected that some teams will take on minority investors.

 

[kaiser matias]

NHL Team Values 2020: Hockey’s First Decline In Two Decades

The NHL elite are holding strong thanks to local TV deals, but the rest of hockey remains stuck in the penalty box.

The result: the average NHL team value fell 2%, to $653 million, the first decline since 2001. Revenue for the league totaled $4.4 billion during the 2019-20 season, 14% less than the previous year. Operating income was $250 million, down 68%. That’s left many owners are scrambling for a lifeline.

Teams with negative operating revenue in $millions
NYI 37.9
FLA 28.9
STL 8.2
MINN 6.2
TB 8.3
COL 10
ANA 9.1
CAR 15
NASH 13.4
OTT 2.9
WIN 7.6
BUFF 10.9
CBJ 10.3
FLA 28.9
ARI 17

Average team debt rose from $127 to $144 million

The NHL is reportedly looking to the private placement market for more debt and it's expected that some teams will take on minority investors.

You have Florida listed twice on that list there.

 

[decma]

Teams with negative operating revenue in $millions
....

Thanks for posting the list.

Do you mean operating income rather than operating revenue?

 

[Fenway]

The NYI number is very suspect given their TV deal and moving games to Uniondale

 

[Golden_Jet]

Thanks for posting the list.

Do you mean operating income rather than operating revenue?

Ya poster meant operating income, half the league is negative, Ottawa has the best negative,

 

[Major4Boarding]

The NHL is reportedly looking to the private placement market for more debt and it's expected that some teams will take on minority investors.

After thinking about what I posted, perhaps I should explain where I'm at on this.

Clubs have more options available to them than the Nuclear option of bankruptcy.

* There's the internal Credit facilities the NHL has in place for each club member.
* OPM ("Other People's Money") - Two examples by the NYR provided here and here.
* Minority stake/managing partner search(es).
* Bankruptcy

I have to imagine the last thing Bettman and Daly need right now is a few franchise owners filing for bankruptcy. I'd gather they would be reaching out to Citi to extend the 2014 credit facility if they haven't done so already. The latter there'd be an announcement, but it may be something that's quietly in the works. As bleak as the existing landscape looks right now, there's a pathway towards normalcy rather soon.

Lot's of cans to kick around, aside from the options above too. That's all I meant with what I posted.

HFeed - 3 to 5 NHL teams could file for bankruptcy (Speculation)

For the record, I am not Drew Dorweiler

 

[Buffaloed]

post #12

For the record, I am not Drew Dorweiler

If you click on the post number it will provide a link to that post.

 

[Colin226]

I'm actually really impressed with the Devils' numbers. Clearly the business side is going very strong despite the team being mostly unwatchable for the last 7 seasons. Likely a result of some major sponsorship deals with Verizon, local healthcare networks, and most importantly a furry of sports gambling sponsorships. Plus leveraging economies of scale with the greater HSBE parent organization that also owns the 76ers, an e-sports team, and a piece of Crystal Palace in the EPL (to name a few).

• Devils ranked more valuable than 3 Canadian teams, Minnesota, and the last 2 Cup winners
• Devils ranked #11 in revenue (higher than the Capitals, which I found surprising)

 

[Ghost of Ethan Hunt]

2 Forbes articles/lists; scroll down for 2nd.


1. NHL Team Values 2020: Hockey’s First Decline In Two Decades

NHL Team Values 2020: Hockey’s First Decline In Two Decades


2. The NHL’s Most Valuable Teams 2020 (1-31)

TB @ #21 surprised me

• Value: $470 million
• 1-Year Change: 0%
• Owner: Jeffrey Vinik
• Operating Income: -$8.3 million

...11 teams (not including SEA) worth less than $500M. A Mega Power Ball winner could buy an NHL team, dreams can come true. (or do the noble thing & give 95% to NPO's/registered charities).

 

[Voight]

The top 5 teams account for 25% of league revenue, which seems concerning. Thank the heavens for peoples undying loyalty to original 6 teams and the Maple Leaf/Hab stronghold in their respective cities (or in the Leafs case, cross country).

The NYI number is very suspect given their TV deal and moving games to Uniondale

Based off Belmont Park Arena.

The Isles actually generated the league's second-lowest revenue, but the incoming Belmont Park Arena (expected to be ready for 2021-22) boosted the club's financial outlook.

Rangers, Maple Leafs lead list of NHL's most valuable franchises

 

[LeHab]

Only 10 teams higher in value then Seattle paid to join.

League average is still slightly above 650M. New teams incur additional expenses to setup the whole infrastructure, marketing etc...Don't be surprised to see initial value dip below expansion fee when that startup debt is taken into account. Depends how Forbes values Seattle Market, Brand and other factors including upcoming media rights deal. Vegas is listed at 570M after accounting for a reported 26% debt/Value.

Here is also the more detailed listing with debt ratio:

The Business Of Hockey

Can also drill down into each team for breakdowns - Media, Arena, Brand and Sport shares.

 

[WildGopher]

To quote:

"On top of that, the league played only 85% of its regular season games with fans and is looking like it is still on thin ice: The 2020-21 season, which in a normal year would already be two months in, might not start until mid January, knocking off one-third of the 82-game regular season. Jam-packed arenas are a pipe dream and with them, the cash from tickets, suites, concessions, sponsorships and parking that account for more than 70% of total revenue in a typical season.

The result: the average NHL team value fell 2%, to $653 million, the first decline since 2001. Revenue for the league totaled $4.4 billion during the 2019-20 season, 14% less than the previous year. Operating income was $250 million, down 68%. That’s left many owners are scrambling for a lifeline."

Source: www.forbes.com/sites/mikeozanian/2020/12/09/nhl-team-values-2020-hockeys-first-decline-in-two-decades/?sh=72783b5d70dd

The low franchise value of Florida and Arizona speak to not only the amount of fan support/revenue in those markets, but also to two policies of the NHL: One is the league's strong resistance to moving any teams. If the league was more open to teams that are bleeding money being allowed to move, you'd think those two teams would be valued much higher, if only for speculation purposes - that is, someone could buy either franchise at a discount and move it to somewhere like Southern Ontario, where it would make a mint; to Quebec, where I think it would do very well; or to a city that has potential if things went well, like Houston. But the league actively discourages that, so it lowers the likelihood that a speculative owner would want to buy, which lowers the demand and franchise values.

But that gets to the second policy of the NHL: Their intention to make someone moving a franchise to pay a high premium based on the perceived difference in value of a club from its present location to where it moves. So if either of those franchises would move to a Hamilton or a Toronto 2, it would instantly be valued at something around $800,000, and the league would want most or all of the difference between that and the team's present $300 mill. Both policies discourage potential buyers. That's been OK for the league as long as Gary's Rolodex of potential owners still has cards in it, but reports like this Forbes survey, plus another bad financial season ahead, might just force the league to modify its policies that effectively prevent moves except in extraordinary circumstances, like what happened in Atlanta in 2011. Or relocations might just have to wait until there is new league leadership, as it appears people like Bettman and Jacobs view franchise location stability as a measure of their success and legacy as leaders of the league.