Sunday, November 11, 2007

Forbes NHL team valuation

The famed financial magazine released it's NHL team valuations last week.To nobody's surprise a big market team came in first, the Toronto Maple Leafs were valuated at 413 million. The Toronto club is owned by the Ontario teachers pension plan, who bought them in 1994 for 102 million. The Nashville Predators came in last at 143 million, the Predators are in the middle of being sold. Besides Toronto, two other canadian market teams are in the top ten. The most storied franchise in the history of the NHL, the Montreal Canadiens are fourth, at 283 million and Vancouver comes in ninth at 211 million.

Canada's small market franchises come in at number 14, 18 and 20. The Ottawa Senators are valuated at 186 million, the Calgary Flames are at 164 and Edmonton at 157 million.When you tally up everything, the average valuation for an NHL franchise,is 200 million. Two thirds of the league franchises are below that average.

In order to establish the salary cap limit, the NHL adds up the total revenue of its clubs. The total that established this season's 50.3 million cap limit, is 2,436 billion, the average comes to 81.2 million per club. The Toronto Maple Leafs came in first, at 138 million. The New York Islanders came in last with a total of 60 million in revenue. Nineteen of the leagues thirty franchises are below the 81.2 million average.

In 2006-07, the Toronto Maple Leafs paid out 49 million in salary to the players (not cap numbers).Which represents 35.5 % of it's total revenue. At the other end of the spectrum, the New York Islanders paid out 45 million is salary, which represents 75% of it's total revenue.Because their are in the New York market, they are not eligible for revenue sharing.

The other canadian markets paid out as follows:The Montreal Canadiens, 46 million for 42.2 % of it's total revenue to the players. The Vancouver Canucks also paid out 46 million in salary for 48% of it's revenue. Ottawa followed Montreal and Vancouver and paid 46 million in salary for 49.4% of it's total revenue of 93 million.Calgary dolled out 46 million also, for 60% of the 77 million in revenue. The Edmonton Oilers forked out 42 million of it's 71 million to the players, for 59.1 %. All monies mentionned here are in US currency.

Remember when Gary Bettman mentionned that the lockout was necessary in order to make the game more affordable to us the fans ? It was a little white lie.Daniel Tolensky at hockeybuzz, has a good piece on this.

Let's take a look at how much an average ticket cost in the different canadian markets. The average ticket price in Toronto is 70 $. In Montreal, it's 57$. In Vancouver it's 59$. The average ticket price to see the 2007 cup finalist, the Ottawa Senators is 46$. In Calgary it's 47$. The average price to see the 2006 cup finalist, Edmonton Oilers, is 52$.

Enjoy your Sunday, if you drink, don't drive, save a life and take a cab.

No comments: