BattleBorn
50% to winning as many division titles as Toronto
If that's the case it makes it even more likely in my opinion.
Let's set up a scenario where there is no current debt, just a franchise that loses $30MM/year for the foreseeable future. If the NHL is in a position to write off those losses, it takes 16.6 years for eliminating the situation and losses to the individual teams to make more sense than taking a lump expansion fee.
Add in the fact that the purchaser would likely clear $300MM worth of clouds (and money the league is likely on the hook for) over the franchise as part of the purchase and it makes sense a whole lot sooner. You clear $10.344MM of potential liabilities off each teams books in one fell swoop and in that case it makes more sense to sell (or force a sale) after 6-7 years.
Expansion:
$500MM/30 = $16.666MM per team in expansion fees once.
Sale:
$10.344/29 One time reduction in current liability.
~$1MM/year in potential per team liability for continuing operations in Glendale.
6-7 years.
Plus, after the clouds are lifted debt wise for the sale, teams still get relocation fees (likely at a more reasonable $150MM or so) and also raise the valuation of a franchise.
$150MM/29 $5.172MM.
Total Franchise Value/Sale Price after debt is paid and fees = $450MM. Makes even more sense with $200MM relocation fees to get to $500MM
It literally makes more sense to move the team after two years using these figures. Plus, you get to the $500MM valuation for a bottom franchise and set the future up for expansion to Seattle, Toronto, QC.
Makes a whole lot more sense than expanding and hoping for a relocation, especially when the relocation candidates like Portland seem to be bargain shopping.
Let's set up a scenario where there is no current debt, just a franchise that loses $30MM/year for the foreseeable future. If the NHL is in a position to write off those losses, it takes 16.6 years for eliminating the situation and losses to the individual teams to make more sense than taking a lump expansion fee.
Add in the fact that the purchaser would likely clear $300MM worth of clouds (and money the league is likely on the hook for) over the franchise as part of the purchase and it makes sense a whole lot sooner. You clear $10.344MM of potential liabilities off each teams books in one fell swoop and in that case it makes more sense to sell (or force a sale) after 6-7 years.
Expansion:
$500MM/30 = $16.666MM per team in expansion fees once.
Sale:
$10.344/29 One time reduction in current liability.
~$1MM/year in potential per team liability for continuing operations in Glendale.
6-7 years.
Plus, after the clouds are lifted debt wise for the sale, teams still get relocation fees (likely at a more reasonable $150MM or so) and also raise the valuation of a franchise.
$150MM/29 $5.172MM.
Total Franchise Value/Sale Price after debt is paid and fees = $450MM. Makes even more sense with $200MM relocation fees to get to $500MM
It literally makes more sense to move the team after two years using these figures. Plus, you get to the $500MM valuation for a bottom franchise and set the future up for expansion to Seattle, Toronto, QC.
Makes a whole lot more sense than expanding and hoping for a relocation, especially when the relocation candidates like Portland seem to be bargain shopping.
