Archive | November, 2012

NHL Team Worth – Forbes Estimates

28 Nov

Interesting read.  Especially with both sides digging in regarding the lockout.

Teams in bold are the teams that are allegedly losing money per the Forbes estimates.

1. Toronto Maple Leafs
Team value: $1billion
Owners: Rogers Communications, Bell Canada
Revenue 2011-12: $200 million
Operating income 2011-12: $81.9 million

2. NY Rangers
Team value: $750 million
Owner: Madison Square Garden, Inc.
Revenue 2011-12: $199 million
Operating income 2011-12: $74 million

3. Montreal Canadiens
Team value: $575 million
Owner: Molson Family
Revenue 2011-12: $169 million
Operating income 2011-12: $51.6 million

4. Chicago Blackhawks
Team value: $350 million
Owner: Rocky Wirtz
Revenue 2011-12: $125 million
Operating income 2011-12: $20.5 million

5. Boston Bruins
Team value: $348 million
Owner: Jeremy Jacobs
Revenue 2011-12: $129 million
Operating income 2011-12: $14.2 million

6. Detroit Red Wings
Team value: $346 million
Owners: Michael and Marian Ilitch
Revenue 2011-12: $128 million
Operating income 2011-12: $20.8 million

7. Vancouver Canucks
Team value: $342 million
Owner: Aquilini Family
Revenue 2011-12: 143 million
Operating income 2011-12: $30.4 million

8. Philadelphia Flyers
Team value: $336 million
Owner: Comcast Spectacor
Revenue 2011-12: $124 million
Operating income 2011-12: $10.9 million

9. Pittsburgh Penguins
Team value: $288 million
Owner: Mario Lemieux, Ron Burkle
Revenue 2011-12: $120 million
Operating income 2011-12: $9.1 million

10. Los Angeles Kings
Team value: $276 million
Owner: Philip Anschutz
Revenue 2011-12: $120 million
Operating income 2011-12: $1.8 million

11. Washington Capitals
Team value: $250 million
Owner: Ted Leonsis
Revenue 2011-12: $106 million
Operating income 2011-12: -$1.0 million

12. Calgary Flames
Team value: $245 million
Owner: Calgary Flames L.P.
Revenue 2011-12: $117 million
Operating income 2011-12: $11 million

13. Dallas Stars
Team value: $240 million
Owner: Tom Gaglardi
Revenue 2011-12: $100 million
Operating income 2011-12: $3 million

14. Edmonton Oilers
Team value: $225 million
Owner: Daryl Katz
Revenue 2011-12: $106 million
Operating income 2011-12: $16.2 million

15. San Jose Sharks
Team value: $223 million
Owner: Kevin Compton
Revenue 2011-12: $101 million
Operating income 2011-12: -$0.9 million

16. Ottawa Senators
Team value: $220 million
Owner: Eugene Melnyk
Revenue 2011-12: $113 million
Operating income 2011-12: $14.5 million

17. Minnesota Wild
Team value: $218 million
Owners: Craig Leipold, Philip Falcone
Revenue 2011-12: $99 million
Operating revenue 2011-12: -$3.9 million

18. Colorado Avalanche
Team value: $210 million
Owner: Stan Kroenke
Revenue 2011-12: $91 million
Operating income 2011-12: $4.5 million

19. New Jersey Devils
Team value: $205 million
Owners: Jeffrey Vanderbeek, Ray Chambers
Revenue 2011-12: $122 million
Operating income 2011-12: $2.8 million

20. Winnipeg Jets
Team value: $200 million
Owner: True North Sports & Entertainment
Revenue 2011-12: $105 million
Operating income 2011-12: $13.3 million

21. Anaheim Ducks
Team value: $192 million
Owners: Henry and Susan Samueli
Revenue 2011-12: $91 million
Operating income 2011-12: -$10.8 million

22. Buffalo Sabres
Team value: $175 million
Owner: Terrence Pegula
Revenue 2011-12: $95 million
Operating income 2011-12: -$10.4 million

23. Tampa Bay Lightning
Team value: $174 million
Owner: Jeffrey Vinik
Revenue 2011-12: $88 million
Operating income 2011-12: -$13.1 million

24. Florida Panthers
Team value: $170 million
Team owner: Cliff Viner
Revenue 2011-12: $87 million
Operating income 2011-12: -$12 million

25. Nashville Predators
Team value: $167 million
Owner: Thomas Cigarran
Revenue 2011-12: $88 million
Operating income 2011-12: -$3.4 million

26. Carolina Hurricanes
Team value: $162 million
Owner: Peter Karmanos Jr
Revenue 2011-12: $85 million
Operating income 2011-12: -$9.4 million

27. New York Islanders
Team value: $155 million
Owner: Charles Wang
Revenue 2011-12: $66 million
Operating income 2011-12: -$16 million

28. Columbus Blue Jackets
Team value: $145 million
Owners: John P. McConnell, Nationwide
Revenue 2011-12: $85 million
Operating income 2011-12: -$18.7 million

29. Phoenix Coyotes
Team value: $134 million
Owner: National Hockey League
Revenue 2011-12: $83 million
Operating income 2011-12: -$20.6 million

30. St. Louis Blues
Team value: $130 million
Owner: Tom Stillman
Revenue 2011-12: $89 million
Operating income 2011-12: -$10 million

 

More from the Forbes article:

 

On the ice, the National Hockey League has never been more competitive than over the course of its last collective bargaining agreement, which began with the 2005-06 season. A different team has won the Stanley Cup each season, ranging from big-market clubs like Los Angeles and Chicago to small ones such as Pittsburgh and Raleigh. A total of 12 different teams reached the finals during the seven-year CBA.

So why have the owners thus far cancelled 422 regular season games of the 2012-13 season, as well as the All-Star Game, insisting on a new CBA that drastically reduces the amount of money that can be spent on player salaries (currently 57% of hockey-related revenue)?

The reason is because on the financial scoreboard, the league’s 30 teams have never been farther apart.

Consider the two most recent team sales. In May, Tom Stillman acquired the St. Louis Blues, the team’s American Hockey League affiliate, the Peoria Rivermen, the lease to the Scottrade Center, and a piece of the Peabody Opera House — all for just $130 million. One month later, the NHL approved the Ontario Teachers’ Pension Plan sale of its controlling interest in Maple Leaf Sports & Entertainment–which owns the Maple Leafs as well as the NBA Raptors and the Air Canada Centre–for an enterprise value of $2.05 billion. We estimate the transaction placed a value of $1 billion on the Maple Leafs.

Our data illustrates the league’s conundrum. Fueled by a 9% increase in overall revenue to $3.4 billion during the 2011-12 season, the average National Hockey League team is now worth $282 million, 18% more than a year ago. The increase in revenue and value speaks to the league’s ability to raise the average ticket price an average of 5% last season, fill its arenas to 95.6% of capacity and renew or secure new sponsorships with Discover, Geico, Honda, the Las Vegas Convention and Visitors Authority, McDonald’s, Paramount Pictures, Tim Hortons, Verizon and Visa.

But the spread between the rich and poor teams is dramatic. The five most valuable teams–the Maple Leafs ($1 billion), New York Rangers  ($750 million), Montreal Canadiens ($575 million), Chicago Blackhawks ($350 million) and Boston Bruins ($348 million)–are worth $605 million, on average. The five least valuable–the Carolina Hurricanes ($162 million), New York Islanders ($155 million), Columbus Blue Jackets ($145 million), Phoenix Coyotes ($134 million) and St. Louis Blues ($130 million)–are worth just $145 million, on average.

There is also an incredible bifurcation of cash flow. Overall operating income (earnings before interest, taxes, depreciation and amortization) almost doubled during the 2011-12 season, to $250 million. But the sport’s three most profitable teams–the Maple Leafs ($81.9 million), Rangers ($74 million), Canadians ($51.6 million)–accounted for 83% of the league’s income, while 13 of 30 teams lost money, before non-cash expenses and interest payments.

If the salary cap were lowered to, say, 50% of revenue and the subsidies from high-revenue teams to their low-revenue rivals were increased to $200 million from the current $150 million, which is essentially where the two sides seem to be headed, small-market team values would get a big boost (as was the case in the NBA when the New Orleans Hornets and Memphis Grizzles sold for $338 million and $330 million, respectively, after the league worked out a new labor pact last year). The league’s overall profitability would also increase. But teams like the Carolina Hurricanes, Phoenix Coyotes, Tampa Bay Lightning, Anaheim Ducks and Columbus Blue Jackets would still have trouble making money unless they went at least two rounds in the playoffs.

Drew Dorweiler, managing partner of Dartmouth Partners in Montreal, thinks the league needs to move some teams. “The Sun Belt has had plenty of time to prove that the viability doesn’t work.” Dorweiler thinks Quebec, where ground has already been broken for a new arena, will eventually get an NHL team, and he also thinks Portland, where minor league hockey is popular, and Seattle, where the city has approved a new arena, would be better cities to house teams than Arizona, North Carolina and Florida, where NHL teams are losing money.

The success of the Winnipeg Jets buttresses Dorweiler’s case for moving a team to Quebec. Last year, True North Sports & Entertainment bought the Atlanta Thrashers for $170 million (including a $60 million relocation fee paid the the NHL). The team moved to Winnipeg and was renamed the Jets, after the original franchise that moved to Phoenix for the 1996 season. The team lost a pile of money playing in Atlanta but posted an operating income of $13.3 million last season, when they sold out every game at their new arena. We think the Jets are now worth $200 million.

There will always be a huge gap in team values because telecommunications companies like Rogers and Bell Canada can leverage the media rights for the Maple Leafs multiples of what Stillman can command in media fees for the Blues. But a new CBA in the NHL along the lines of what the NBA has, coupled with the relocation of some teams, would shrink the disparity in hockey’s operating income. Hopefully, NHL commissioner Gary Bettman and NHLPA director Donald Fehr stop fighting and start skating toward that goal before the entire season is lost.

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Andrew Shaw – the legend continues

7 Nov

TTS favorite Andrew Shaw was suspended for 6 games while playing for the Rockford Ice Hogs in a game against the Lake Erie Lock Monsters.

from puck daddy:

Shaw is the Chicago Blackhawks forward famous for his spirited play and infamous for his steamrolling of Phoenix Coyotes goalie Mike Smith in the Stanley Cup Playoffs, costing him a 3-game suspension.

After his WWE-style run-in from the bench to fight Bordeleau, it was teammate (and former NHLer) Wade Brookbank that also left the pine for the ice to square off against the Lock Monsters defenseman.

Bordeleau earned 26 penalty minutes for the game, including a game misconduct. Brookbank earned a 10 minute misconduct and a game misconduct for leaving the bench; Shaw earned the same.

But when it comes to supplemental discipline, Shaw got the brunt of it. From the AHL:

Rockford IceHogs right wing Andrew Shaw has been suspended for six (6) games as a consequence of his actions in a game vs. Lake Erie on Nov. 3. Shaw was assessed a game misconduct for leaving the players’ bench for the purpose of starting an altercation. Shaw will miss Rockford’s games Friday (Nov. 9) at Grand Rapids, Saturday (Nov. 10) vs. Milwaukee, Nov. 14 vs. Peoria, Nov. 16 vs. Houston, Nov. 18 at Houston and Nov. 21 vs. Peoria.

Brookbank was suspended one game. Olsen was given two games for an illegal check to the head. Shaw, meanwhile, becomes an even more endearing figure for the Blackhawks fans that created #ShawFacts.