Around the NHL 11 - 2023/24

[ps241]

There's basically 2 types of value in an investment. One being "cash flow" - can it pay it's bills in a fiscal year, and also make profit. The other is "long term asset appreciation".

I really don't think owners buy initially to make money by way of cash flow, as the cost to get in , is just too high. If they can that's great, and some older more established clubs do.

The money is made "long term " like a real estate investment. Example Chipman buys the Jets for $ 160 million, and could likely sell the Jets for at least $ 2 billion. I think Seattle paid close to $ 3 billion, but it may have been $ 2 bil.

So say Chipman sold the Jets for $ 2 billion, less his cost of 160 mill, then his profit would be ( $ 2 bil - $ 160 mil ) = $ 1.84 billion dollars,
less some bad years on the operating side. Now you see where the money is made = "long term." and it's very big money $$$

The Key is you have to have the pockets to carry the team thru bad operating years, where you lost money on the operating side. A good example would be Zeto, owner of the Florida Panthers. He has very very deep pockets, and can play with 1/2 empty arenas, ( and did) whereas a guy like Chipman, cannot afford that.

A few things to add. Yes there are proper business fundamentals to explain the current approximate valuations of Pro Sport franchises but I am going to avoid that rabbit hole for this post.

As @cbcwpg mentioned I would say one primary driver of owning a sport property is ego and I would like to build on that point.

I think one of the major factors in the explosion of sport property valuations is the growth of the Billionaire class (Adding more egos to the buy side). Back in 2011 when Dallas and Atlanta sold there were under 20 Billionaires in Canada (est) and 412 Billionaires in the US. Fast forward to 2024 and there are between 56-67 Billionaires in Canada (from two reports I saw) and 748 Billionaires in the US (Statista) and the category appears to be growing in North America by about 25 new Billionaires per year.

The demand side of the number of possible buyers (egos) is growing much faster than the supply side of professional sport franchises in the North America. I think that is impacting pro sport valuations and helping enrich the multiples that the brands/properties are fetching.

 

[WolfHouse]

Who is going to pay 2B for the Jets?
Dream on...

Yeah winnipeg is only worth half that... tnse would never sell for a measly one billion dollars

 

[ps241]

Yeah winnipeg is only worth half that... tnse would never sell for a measly one billion dollars

It will be interesting to see how they proceed if the demand remains soft.

So far his half of the investment has increased in value by approximately $400 million since 2011 and they made some money along the way too so this has worked out well to date.

 

[cbcwpg]

Who is going to pay 2B for the Jets?
Dream on...

Anyone paying $2B for the Jets is going to get a "move it where ever you want it" guarantee from Bettman.

 

[jamiebez]

Michael Andlauer bought 90% of the Sens (and the Canadian Tire Center) for $950M US last year. That strikes me as a pretty close comparison to the Jets - around $1B US.

 

[GeorgeJETson]

Who is going to pay 2B for the Jets?
Dream on...

2B or not 2B? That is the question.

I'll show myself out.

 

[bustamente]

Laine a Canadien

https://x.com/i/web/status/1825623298991903225

 

[Aggie204]

Laine a Canadien

I wish Laine the best and think he is due for an amazing bounce back. I’m also glad the Jets didn’t bring him back and is stuck in the East.

My gut feeling is he won’t be able to stand the crushing media that report on the Habs.

 

[surixon]

Columbus had to give him away in the end. Seems they valued cap space and getting him out of the room pretty heavily.

 

[KingBogo]

Laine a Canadien

https://x.com/i/web/status/1825623298991903225

This is going to be pretty entertaining. Habs fans meet Laine's player first, he can do no wrong under any circumstances fan boys. Let the fireworks start

 

[Aggie204]

Columbus had to give him away in the end. Seems they valued cap space and getting him out of the room pretty heavily.

That trade tree for PLD and Laine is bonkers.

 

[Buffdog]

Since there was a little speculation that we were interested in Laine, I loosely followed the main board trade thread

Lots of CBJ fans in there are eating crow right now. They were convinced he had actual value at full price right until the very end

 

[wpgallday1960]

I hope Laine the best and think he is due for an amazing bounce back. I’m also glad the Jets didn’t bring him back and is stuck in the East.

My gut feeling is he won’t be able to stand the crushing media that report on the Habs.

I did not want Laine back here at all. That ship has sailed and he has too many question marks for the Jets to trade anything of value.

 

[KingBogo]

Since there was a little speculation that we were interested in Laine, I loosely followed the main board trade thread

Lots of CBJ fans in there are eating crow right now. They were convinced he had actual value at full price right until the very end

Yeah I went by there a few times. They were drastically over valuing him. Appears the organization just wanted to cut ties without holding onto salary. Laine that poor bastard. Ending up in Montreal of all places. Going into that media/fan pit won't be a walk in the park.

 

[Stumbledore]

If they think Laine had mental health issues in Columbus, wait until the Montreal sports media gets ahold of him.

I see retiring (perhaps to Scandinavia?) within two years.

 

[KingBogo]

That trade tree for PLD and Laine is bonkers.

And the funny thing with it all, Chevy comes out smelling like a rose.

 

[Buffdog]

If they think Laine had mental health issues in Columbus, wait until the Montreal sports media gets ahold of him.

I see retiring (perhaps to Scandinavia?) within two years.

It'll have to be within two years since that's what's left on his contract

I think he'll suck it up for 17.6M. Worst case is that he uses the same program he just came out of

 

[Jets 31]

Wow, Montreal? The Professor and the Montreal board is going to be hilarious.

 

[Royale With Cheese]

There's much more risk for Montreal in that deal than Columbus. $8.7M cap hit with no retention for a player that's played his way off two teams, is injured often, does not drive a line, and is coming out of the player assistance program. I wish Patrik well but without significant retention from CBJ, that is a toxic contract IMO.

 

[WaveRaven]

Hmmmm I guess the holdup was Laine agreeing to go there. It's going to be a train wreck.

 

[Mortimer Snerd]

Yeah I went by there a few times. They were drastically over valuing him. Appears the organization just wanted to cut ties without holding onto salary. Laine that poor bastard. Ending up in Montreal of all places. Going into that media/fan pit won't be a walk in the park.

Interesting that Laine accepted Mtl as a landing spot. Either they were not on his list or he waived.

 

[KingBogo]

Hmmmm I guess the holdup was Laine agreeing to go there. It's going to be a train wreck.

I'm guessing the biggest holdup was a team willing to take on his whole contract at a cap dump rate Columbus could swallow.

 

[GeorgeJETson]

The Professor vs. Rabid Montreal Fans.

Sounds like a WWE PPV special.

 

[bustamente]

I'm glad Laine has stayed out east, he has regressed as a player and has other issues he needs to figure out. If he can stay healthy focused and shows some heart maybe he can become a useful player but I wouldn't hold my breathe.

 

[GeorgeJETson]

Chevy's probably pretty happy - turned Laine + Roslovic into PLD who in turn got a nice package.

Although, in hindsight, 2016 looks like a bad draft year for the top 5 or so.

EDIT: Except for Pornstache Matthews that is.