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Discussion in 'Sports Programming and Events' started by juan ellitinez, Mar 3, 2005.
Looks like someone is trying to buy the NHL http://sports.yahoo.com/nhl
yes but will there be any more fans left? Hockey has been going down a dead end road for a long while now and it has reached the end of that road.
Tell Canada to buy it.
I know it is hard to get 30 people to agree to anything... but there's something I can't figure out here...
The NHL owners (even the franchises that were doing sorta ok) all to a man were saying they were losing money operating the business as it was... and I've heard something like $500 million lost to each franchise as a result of the no-league we just had...
So, from a business perspective... IF you're losing money every year... and you just had a no-year in which you lost mega money... and your fan-base was suspect anyway, especially after a no-season... and you might not resolve the strike this year either...
Why would you outright refuse a $3.5 billion buy-out? IF each owner took the value of their team from that pool... almost every single owner would get full value for their franchise... and they'd be out of the business with a HUGE cash-deposit in their banks to go start something else... and it would be some other sucker's loss to deal with!
I think the idea is that they haven't officially ruled out the offer. When an offer like that is presented, you have to look at it even if you aren't interested. I don't think it will ever happen because how do you value each team? 30 teams at 3.5B, that's only $116m a piece. I bet many teams are worth more then that. Is Detriot worth more then Boston or Alanta? Some teams I think will reject it because they would get the short end of the deal, but others would accept it as they could get more then the team's worth...or at least provides them a way to get rid of a team that is no longer profitable.
The question also remains, what would they do with 30 NHL teams?
I believe the $500 million is what the league lost collectively over the past 2 seasons (not including this "lost" season)
According to Forbes magazine, the teams on average are worth $163 million. (obviously some are more and some are less...e.g. Dallas Stars = $259 million, Anahiem Ducks = $79 million).
So for some teams it sounds like a good deal, but for most it will be a loss.
I don't know but I bet you most teams are owned by someone in the United States.
That's what I meant to say in regards to the lost $500 million, being for the entire league... but I wasn't sure if it counted the non-season or not... As for the average... I was thinking that the fair thing to do would be not divide the buy-out across all teams evenly, but to value the teams and then give it out accordingly. Some teams (like Anaheim) were sold recently, so it is much easier to figure their approximate value.
IF all the less valuable teams took their face-value, I suspect the higher valued teams would be able to get closer to their value... especially if the offer potentially goes up...
Someone (can't remember where I saw it) recently said somewhere around $4.9 billion I think approximate value for the NHL, so $3.5 billion isn't that far off, and if they are willing to negotiate upwards... and teams were losing money anyway... it just seems like an easy-out for a lot of folks in a quite-possibly dying sport.