News Article: Forbes Team Valuations 2013 - Ottawa Ranked 15th

[supsens]

Find it hard to believe the team could jump 73% coming out of a 1/2 season. No way the team value goes up 150 million in one year, not sure what Forbes is doing different....besides not having any knowledge of what teams actually make as they are all private.

lower cap means more money for the team?



this was also in the article

Canada will soon be bringing the NHL more wealth. The league’s six-year, $600 million television deal with CBC, which includes Hockey Night in Canada, expires after this season. The renewal of that deal will likely see CBC share some games with TSN or Rogers Sportsnet, and go for around $200 million a season, surpassing the 10-year, $187 million a season national broadcast agreement the NHL has with NBC Sports that began with the 2011-12 season. Such a deal would mean a bigger increase in revenue for Canadian teams because even though 65% of they money will go to the 23 U.S. franchises, on a per-team basis the seven Canadian franchises will get almost double the amount of their American rivals.

Another reason for surge in team values: the trillions of dollars the Federal Reserve has pumped into the financial system the past five years had fueled a surge in stock prices and inflated asset values. The enterprise ratio (enterprise value divided by operating income) of the S&P 500 index has increased to 11 from 8 since 2008.

 

[AchtzehnBaby]

We need $50m per year profit... (for Eugene's drinking)

 

[Quo]

Cyril Leeder commented about how HNIC does not make the Sens money. They lose out on local advertisement compared to when Sportsnet airs the game.

Not overly confident that a new deal with CBC or TSN will benefit the Sens.

The Sunday night telecast on SNET that's being speculated. That could be all us.

 

[thinkwild]

With the rates at what they are, the refinance that got him 150million probably saved the Sens millions of dollars in interest.

That's not the way Melnyk explained it. He suggested that because of the uncertainty over the lockout, he was unable to get the refinancing when he wanted it and at the rate he wanted and was forced to incur 10's of millions in interest and penalties until the lockout ended.

And the $100 mil debt Melnyk is claiming, i recall that appearing after the first years in the league. Most people i know would call that a mortgage and an investment. One of those great 5% down type mortgages apparently. Even though he was a billionaire, he chose to finance the team that way.

In the Bryden years, did the Sens ever make a profit. All i remember is that sky was always falling. Has Melnyk ever made a profit? Perhaps after the finals appearance, but otherwise, wasnt it always 2nd round or not profit? Except for last year when we still allegedly lost money? 10 mil a year for the last 8 years or something.

Those losses are apparently good for business, his franchise value went from $120 to $380mil during that time. What's that old saying? Money talks, b.s walks.

And you dont need to sell the franchise to realize those capital gains. That's what leveraging your investments is all about. We look at it as if it was a mom and pop store, and think omg, he is in debt. For capitalists they brag, look how much debt i was able to leverage out of my investments. And the best part? Fans think its their fault!