The bubble isn’t bursting
Jeez, you sound just like an investor in "Countrywide Mortgages" in early 2006!
Bubbles pop, it's what they do. The fact is that sports teams aren't making 10 times as much money as thet did two decades ago... and yet they are somehow selling for ten times as much!
The expansion fee for the Ottawa Senators was 50 million $. And almost everyone at the time agreed they OVERPAID! The Wild paid 80 million $, and it was an outrageous sum according to many.
Not long after Gillette paid 180 million $ for the MONTRÉAL CANADIENS in 2001. A huge sum at the time. And now according to Forbes they are worth 1,3 BILLIONS according to Forbes. And it'd probably sell for more on the open market!
That's a ridiculous, nonsensical increase in value.
The Canadiens aren't making the profits that justify anything like this silly valuation.
Sports teams are a speculative bubble right now.
Let me take you on my time machine back to before the Housing Crisis of 2007caused by the US housing market bubble popping:
I'm not saying sport team values are going to crash. I'm just saying that there will be a major "correction" of sports team valuations.
When? Well, it'll be a gradual process at first, as more people "cut the cable cord", and as a result as the inflated TV contracts expire / as the regional sports networks grossly overpaying for sports fall appart... the increase in sports team values will seriously slow down.
And next recession, when a bunch of owners decide to sell at the same time because their "main" business is in trouble and their sports "side-gig" is expandable in their opinion... and they cant AT ALL get the massive sum of money their teams are somehow supposed to be worth.... well you'll see a dramatic correction in team valuations. And you'll see teams sell for their real values... way, way below the inflated current valuations.
Now, maybe I'm wrong. Maybe the Montréal Canadiens own secret money-printing machines under the Centre Bell that print 20 dollar American bills 24/7. Enough money for the team to make the profit justifying a 1.3 BILLION $ valuation.... but I doubt it.
You’re the Alex Jones of the Arizona Megathread, along with a few others. While I don’t agree that you should be silenced, your opinions should be greatly silenced since there’s no evidence to most of your claims. Not the least of which will always be the expansion of the league twice since the supposed doomsday at the “hidden” figures those of your ilk suggest.
The answer isn't "hidden", it's clear as day and out in the open that the Coyotes are borrowing like mad on the NHL line of credit. And like I said, that's fine in a Bull market with quickly increasing team values.
Here's the logic:
"Who cares if I lose 20 million $! Forbes said my team is worth 70 million dollars more this year then last year! And I can probably sell it for a lot more!"
That's what is happening. It's the housing bubble all over again. Team owners are sure they can flip their teams for a huge profit any day they want.
And right now they can. And they might still for 1-2-3-4, or maybe even 5 years.
But eventually a recession will happen. And the party will end.
Call me "Chicken Little" if you want. But this bubble ain't sustainable. And the fact it hasn't popped yet doesn't prove otherwise.