Lemieux looking into buying back the Penguins from FSG

[StreetHawk]

Michael Andlauer just paid $1B for the Senators- one of the smallest markets and a team that hadn't made the playoffs in over 5 seasons with so so attendance and previous to the sale speculation was in the 700-800 million range.

And that is also factoring that he needs to contribute to building a new arena on top of that price.

 

[PistolPete]

And that is also factoring that he needs to contribute to building a new arena on top of that price.

I think if he gets what he wants he also gets to develop off of Albert Street- I've heard office buildings.

 

[GrumpyKoala]

Is cash flow even a primary concern for owners?

Sports is a different beast it seems where cash flow seems to take a backseat to other considerations:

the fact that a sports franchise hasn't decreased in value...ever?

Real estate side deals

Write offs

Michael Andlauer just paid $1B for the Senators- one of the smallest markets and a team that hadn't made the playoffs in over 5 seasons with so so attendance and previous to the sale speculation was in the 700-800 million range.

Depends, some owners are loaded and buy team for extended leisure. Some invest to make income.

Even if the point is to cash in later in valuation it's nice to make money, and a bizness that make money appreciate faster.

Andlauder very much want to move the team closer to downtown because he ultimately want to generate more revenue.

That said, your line of thinking is correct, making at gate revenue is just one of multiple consideration.

 

[Shark Finn]

Right in time for McKenna.

 

[SomeDude]

One thing being overlooked is that FSG also bought the Mellon Arena site across the street from PPG with the team. That is a very valuable asset by itself.

The previous ownership group seemed to be frustrated with all the red tape and political issues of developing the site, and I don’t think property management and development really interested them.

FSG has overseen the process and has started development of what I’m sure is going to be a very valuable mix of retail and housing.

FSG can sell the team while retaining this asset to keep in their portfolio or flip to someone else for even more money.

 

[PistolPete]

Right in time for McKenna.

Does any owner in the NHL even know who that is?

 

[ManofSteel55]

Just wait 5 years until Sid retires and the value of the team drops. Come on Mario, you don't buy at high value.

 

[ManofSteel55]

Out of curiosity, jokes asise: does anyone actually believe the roster of players adds value to a team- even a McDavid?

Indirectly. One player can be the difference between being the worst team in the league and not (if you have a decent team around them), so in that instance, increased ticket sales, demand for TV, etc means the value of the team will increase.

 

[PistolPete]

Indirectly. One player can be the difference between being the worst team in the league and not (if you have a decent team around them), so in that instance, increased ticket sales, demand for TV, etc means the value of the team will increase.

But you're talking about something that is fleeting.

I would think a person who is already super rich is aware that the temporary situation doesn't add anything to the value of the team when he goes to sell ot' unless he plans to sell it.

Again, I have a strong interest in sports business and I have never come across a claim that on ice performance, having a superstar etc adds anything to the value of the team

 

[PistolPete]

Just wait 5 years until Sid retires and the value of the team drops. Come on Mario, you don't buy at high value.

The value of sports teams never drops. That's what makes them such a desired investment

 

[elmaco]

I could see FSG selling a small stake as that is typically how they work, but unless it’s a significant overpayment I’d be very surprised if they sold the whole thing. That is unless there has been a big miscalculation on costs/projections etc, but that in itself would be surprising.

Perhaps they need to fund the Wirtz transfer for Liverpool.

I'm pretty sure owners can't inject money for transfers, FIFA has a bunch of rules that teams have to earn transfer money themselves.

 

[Gnashville]

McKenna and DuPont are guaranteed to be Penguins now.

 

[OgeeOgelthorpe]

Out of curiosity, jokes asise: does anyone actually believe the roster of players adds value to a team- even a McDavid?

Uh...yeah.

The Oilers are valued at 2.65 BILLION.

Edmonton Oilers on the Forbes The Business of Hockey List

The Flames are worth 1.65 billion.

Same province. One has McJesus. Another doesn't. A winning team is worth more money, simple as that. And winning teams have better players. Better players equal more value.

 

[PistolPete]

Uh...yeah.

The Oilers are valued at 2.65 BILLION.

Edmonton Oilers on the Forbes The Business of Hockey List

The Flames are worth 1.65 billion.

Same province. One has McJesus. Another doesn't. A winning team is worth more money, simple as that. And winning teams have better players. Better players equal more value.

I am willing to wager a penny that a $1B difference in value is not tethered to something as temporary and fleeting as on ice performance.

In all the valuation estimates I have seen if teams, I have never seen any reference to on ice performance or the roster

 

[SEALBound]

Lemieux buying back Pitts in case they win the McKenna-Dupont-Schultz sweepstakes

Mario is already in discussion with Uncle Gary. McKenna and Dupont to send Sid off into the sunset with Mario in the box nodding slowly in an NHL wet dream.

 

[PistolPete]

Mario is already in discussion with Uncle Gary. McKenna and Dupont to send Sid off into the sunset with Mario in the box nodding slowly in an NHL wet dream.

Why does the NHL care if Mario is an owner?

 

[Pizza!Pizza!]

Very weird. Why did they sell in the first place then?

As a Pens fan I’m fine with it obviously but could do without Morehouse.

buy low, sell high, wait for dip, buy back in, still have $$ left over

 

[Son of Nogatco]

On ice success likely has zero impact on team value.

I have never come across any discussin about team values that suggested on ice performance was a factor in team value.

You don’t think when Tom Brady went to Tampa bay that increased the value of the franchise? Hard to imagine it didn’t have an impact

 

[Turin]

buy low, sell high, wait for dip, buy back in, still have $$ left over

But I don’t think it’s dipped. Prices for teams are way higher already

 

[PistolPete]

You don’t think when Tom Brady went to Tampa bay that increased the value of the franchise? Hard to imagine it didn’t have an impact

Nope.

I just got see a rich mutha looking at a team and saying, "I gotta have a team with Tom Brady on it, let me sweeten mu offer by another $100M"

 

[JKG33]

The damage Dubas did to that team should probably knock at least a few million off what Fenway originally paid

 

[PistolPete]

buy low, sell high, wait for dip, buy back in, still have $$ left over

When was the last time a Bog 4 franchise was sold for a loss?

 

[Kristopher Letang]

The damage Dubas did to that team should probably knock at least a few million off what Fenway originally paid

Crazy how I guessed you were a leafs fan right away.

 

[JKG33]

Crazy how I guessed you were a leafs fan right away.

Ok?

 

[Son of Nogatco]

The damage Dubas did to that team should probably knock at least a few million off what Fenway originally paid

Eh, I think that’s overstated. Can’t make chicken salad outta chicken shit.