News Article: The business of Toronto sports teams

[LeafsNet]

Leafs named most valuable NHL team for second year in a row.

The NHL’s Most Valuable Teams 2024

Explore the ranking of hockey's 32 franchises. The Toronto Maple Leafs edge the New York Rangers for No. 1, but every team is worth much more than a year ago.

www.forbes.com

NHL
1. Toronto Maple Leafs - $3.8 billion
2. New York Rangers - $3.1 billion
3. Montreal Canadiens - $3.0 billion
4. Los Angeles Kings - $2.9 billion
5. Boston Bruins - $2.7 billion

Comparison with other leagues

NBA
The Raptors continue their quick rise in the rankings since the 2019 Championship and are now in the top 10 They’ve outpaced Philly and Dallas and should overtake Houston and Miami….I see them comfortably sitting in 6 or 7 just based on market size alone. In Masai We Trust.

1. Golden State Warriors - $9.1 billion
2. New York Knicks - $8.3 billion
3. Los Angeles Lakers - $8.1 billion
4. Brooklyn Nets - $5.7 billion
5. Los Angeles Clippers - $5.68 billion
6. Boston Celtics - $5.66 billion
7. Chicago Bulls - $5.6 billion
8. Miami Heat - $5.0 billion
9. Houston Rockets - $4.7 billion
10. Toronto Raptors - $4.6 billion

MLB
Blue Jays are also inching towards the top 10…they’ve continually been ranking upwards since the 2015 season. In these nine seasons the Blue Jays have jumped 9 positions from 22nd in 2015 to 13th in 2024. They should reach the Top 10 within the next two seasons unless Atkins and Shapiro **** something up again.

1. New York Yankees - $7.9 billion
2. Los Angeles Dodgers - $6.3 billion
3. Boston Red Sox - $5.7 billion
4. Chicago Cubs - $5.3 billion
5. San Francisco Giants - $4.2 billion
6. Atlanta Braves - $3.4 billion
7. Houston Astros - $3.2 billion
8. Philadelphia Phillies - $3.0 billion
9. New York Mets - $2.9 billion
10. St. Louis Cardinals - $2.7 billion
…
13. Toronto Blue Jays - $2.3 billion

MLS
Toronto FC are the only Toronto team in the major leagues to have dropped down in value. The mess at the front office clearly has had an impact. Hopefully MLSE can turn this ship around….they’re still in the top 10 but have dropped three positions down to 8th now. At one point Toronto FC was the second most valuable team in the MLS.

1. Los Angeles FC - $1.15 billion
2. Atlanta - $1.05 billion
3. Miami - $1.02 billion
4. LA Galaxy - $1.0 billion
5. New York City - $840 million
6. Austin - $800 million
7. Seattle - $795 million
8. Toronto FC - $725 million
9. DC United - $720 million
10. Portland - $715 million

An interesting take on the valuation of teams and the health of the leagues.

Click to read more...

 

[keonsbitterness]

Those MLS valuations are laughable. No one would pay those prices.

 

[thewave]

Leafs named most valuable NHL team for second year in a row.

The NHL’s Most Valuable Teams 2024

Explore the ranking of hockey's 32 franchises. The Toronto Maple Leafs edge the New York Rangers for No. 1, but every team is worth much more than a year ago.

www.forbes.com

NHL
1. Toronto Maple Leafs - $3.8 billion
2. New York Rangers - $3.1 billion
3. Montreal Canadiens - $3.0 billion
4. Los Angeles Kings - $2.9 billion
5. Boston Bruins - $2.7 billion

Comparison with other leagues

NBA
The Raptors continue their quick rise in the rankings since the 2019 Championship and are now in the top 10 They’ve outpaced Philly and Dallas and should overtake Houston and Miami….I see them comfortably sitting in 6 or 7 just based on market size alone. In Masai We Trust.

1. Golden State Warriors - $9.1 billion
2. New York Knicks - $8.3 billion
3. Los Angeles Lakers - $8.1 billion
4. Brooklyn Nets - $5.7 billion
5. Los Angeles Clippers - $5.68 billion
6. Boston Celtics - $5.66 billion
7. Chicago Bulls - $5.6 billion
8. Miami Heat - $5.0 billion
9. Houston Rockets - $4.7 billion
10. Toronto Raptors - $4.6 billion

MLB
Blue Jays are also inching towards the top 10…they’ve continually been ranking upwards since the 2015 season. In these nine seasons the Blue Jays have jumped 9 positions from 22nd in 2015 to 13th in 2024. They should reach the Top 10 within the next two seasons unless Atkins and Shapiro **** something up again.

1. New York Yankees - $7.9 billion
2. Los Angeles Dodgers - $6.3 billion
3. Boston Red Sox - $5.7 billion
4. Chicago Cubs - $5.3 billion
5. San Francisco Giants - $4.2 billion
6. Atlanta Braves - $3.4 billion
7. Houston Astros - $3.2 billion
8. Philadelphia Phillies - $3.0 billion
9. New York Mets - $2.9 billion
10. St. Louis Cardinals - $2.7 billion
…
13. Toronto Blue Jays - $2.3 billion

MLS
Toronto FC are the only Toronto team in the major leagues to have dropped down in value. The mess at the front office clearly has had an impact. Hopefully MLSE can turn this ship around….they’re still in the top 10 but have dropped three positions down to 8th now. At one point Toronto FC was the second most valuable team in the MLS.

1. Los Angeles FC - $1.15 billion
2. Atlanta - $1.05 billion
3. Miami - $1.02 billion
4. LA Galaxy - $1.0 billion
5. New York City - $840 million
6. Austin - $800 million
7. Seattle - $795 million
8. Toronto FC - $725 million
9. DC United - $720 million
10. Portland - $715 million

An interesting take on the valuation of teams and the health of the leagues.

I think Rogers is going to package them all and go public. 11-12b evaluation.

 

[MilkofthePoppy]

Those MLS valuations are laughable. No one would pay those prices.

I don't doubt the existence of fudging the numbers, but the United States is home to many Latin speaking peoples that have contributed to the popularity of MLS. Messi alone would bring in hundreds of millions for Miami FC in Jersey sales.

 

[Evilhomer]

I think Rogers is going to package them all and go public. 11-12b evaluation.

I think the same. It's a perfect set up to bundle them all into a public company.

 

[thewave]

I think the same. It's a perfect set up to bundle them all into a public company.

Do you think Rogers is going to bother to bid on the TV rights? I think they are going to sucker Amazon into that position and create a Leafs TV type entity that promotes Leafs/Raptors etc and Rogers simultaneously with the usual stuff like condensed game highlights. Embed that into the sports package that takes care of the Toronto sports teams together.

Call it RMLSE TV and just angle it that way. Maybe have replay streaming rights after the live event is over (probably not this).

 

[LeafsNet]

Those MLS valuations are laughable. No one would pay those prices.

MLS is actually growing quite well. The product on the field is another issue altogether, but Canada’s World Cup run doesn’t happen without the MLS and CPL. It’s won’t ever become an EPL or Bundesliga, but it’s definitely heading in the right direction.

The only thing the MLS messed up on is expanding too quickly IMO.

 

[LeafsNet]

I didn’t bother with the NFL rankings, but thought it would be interesting to see how much CFL teams are worth and what trend they’re moving in. Sadly there’s not much information online.

Here’s what AI picked up

The value of a Canadian Football League (CFL) team is not publicly available, but the CFL once quoted a price of CA$2,700,000for a team.

Here are some other facts about CFL teams:

• Ownership
  The CFL has six privately owned teams and three teams operated by non-profit boards, which are often called "community" ownership.
  
• Merchandise sales
  The Saskatchewan Roughriders sell more merchandise than the other eight CFL teams combined.
  
• Toronto Argonauts
  The Argonauts are the oldest professional sports team in North America that still uses its original name. They are also the oldest-surviving team in the modern-day CFL and East Division.

 

[DuklaNation]

These Forbes lists are garbage. Blue Jays number is definitely way too low in comparison to those other figures.

 

[keonsbitterness]

MLS is actually growing quite well. The product on the field is another issue altogether, but Canada’s World Cup run doesn’t happen without the MLS and CPL. It’s won’t ever become an EPL or Bundesliga, but it’s definitely heading in the right direction.

The only thing the MLS messed up on is expanding too quickly IMO.

I'm not convinced. Growth has been primarily due to expansion fees. I want to see what happens after they max out.

 

[thewave]

I'm not convinced. Growth has been primarily due to expansion fees. I want to see what happens after they max out.

Gary Bettman is all about gimmicks and schemes. That's the NHL. If they had a guy like Tim Leiweke from the start they would likely be in a far better position.

 

[Leafsfan74]

Do you think Rogers is going to bother to bid on the TV rights? I think they are going to sucker Amazon into that position and create a Leafs TV type entity that promotes Leafs/Raptors etc and Rogers simultaneously with the usual stuff like condensed game highlights. Embed that into the sports package that takes care of the Toronto sports teams together.

Call it RMLSE TV and just angle it that way. Maybe have replay streaming rights after the live event is over (probably not this).

I can't say specifically what they will do if they decide to put the teams up of course, but they will almost certainly be partnering with Amazon in one form or another. Any sports league would be violating their fiduciary duty to their members to not explore this potential goldmine.

Working through the NHL is probably less favourable to the Leafs but I can't say for certain and I haven't sought to understand the way the NHL TV contracts work in terms of team autonomy within the league. Based on the last NHL deal though it would appear they have a high degree of autonomy.

Regardless, it would probably not be the best option to bundle their assets if possible as they would almost certainly receive significantly less than if they sold them separately seeking specific committed ownership for each sport. It isn't always a situation in which the sum of their parts are worth more than the individual buyer market potential values.

It would be more ideal, depending on Rogers objectives with the cash they receive (big merger or purchasing plans etc). I'm just not sure that Rogers has this luxury so they might be willing to take less in a bundle. The ideal might be to seek U.S ownership of the Blue Jays and/or NBA, but the Raptors are also quite profitable as I understand it. The Blue Jays appear to be the problem for them and it might not improve due to the massive salaries the stars are getting. A nice write-off and based perhaps on them trying and failing to get Ohtani and others, maybe they are looking to get a real big fish before selling them? Maybe they believed a player like Ohatani can get them enough in ad returns/TV options etc to justify the expense?

This is a Canadian market and it makes business sense for a media company to purchase all of these teams. hence, Rogers decisions Rogers has the perfect partnership. Who else would buy them all, a Canadian bank? There are only a few Canadian corporations with the means and which also makes a good partnership to their parent company.

Salaries in baseball and basketball are really increasing and I'm not sure it is viable for them going forward. Check out the Blue Jays operating income chart. They are bleeding cash with big contracts to come (or players to walk away from), It might be creative accounting for the Parent Company Rogers sake, but I'm not sure.

Toronto Blue Jays operating income 2023 | Statista

In 2023, the operating loss of the Toronto Blue Jays amounted to 45 million U.S.

www.statista.com

In contrast, the Leafs are making hand over fist, which actually hurt this teams chances to building a real Cup winner in my opinion. They want sexy over substance as it pads their broader revenue.


My guess is that eventually the Blue Jays will be moved down south by another owner some day. A sad reality but Oakland experienced it and they have a much longer history and following than the Blue Jays.

 

[Stephen]

I can't say specifically what they will do if they decide to put the teams up of course, but they will almost certainly be partnering with Amazon in one form or another. Any sports league would be violating their fiduciary duty to their members to not explore this potential goldmine.

Working through the NHL is probably less favourable to the Leafs but I can't say for certain and I haven't sought to understand the way the NHL TV contracts work in terms of team autonomy within the league. Based on the last NHL deal though it would appear they have a high degree of autonomy.

Regardless, it would probably not be the best option to bundle their assets if possible as they would almost certainly receive significantly less than if they sold them separately seeking specific committed ownership for each sport. It isn't always a situation in which the sum of their parts are worth more than the individual buyer market potential values.

It would be more ideal, depending on Rogers objectives with the cash they receive (big merger or purchasing plans etc). I'm just not sure that Rogers has this luxury so they might be willing to take less in a bundle. The ideal might be to seek U.S ownership of the Blue Jays and/or NBA, but the Raptors are also quite profitable as I understand it. The Blue Jays appear to be the problem for them and it might not improve due to the massive salaries the stars are getting. A nice write-off and based perhaps on them trying and failing to get Ohtani and others, maybe they are looking to get a real big fish before selling them? Maybe they believed a player like Ohatani can get them enough in ad returns/TV options etc to justify the expense?

This is a Canadian market and it makes business sense for a media company to purchase all of these teams. hence, Rogers decisions Rogers has the perfect partnership. Who else would buy them all, a Canadian bank? There are only a few Canadian corporations with the means and which also makes a good partnership to their parent company.

Salaries in baseball and basketball are really increasing and I'm not sure it is viable for them going forward. Check out the Blue Jays operating income chart. They are bleeding cash with big contracts to come (or players to walk away from), It might be creative accounting for the Parent Company Rogers sake, but I'm not sure.

Toronto Blue Jays operating income 2023 | Statista

In 2023, the operating loss of the Toronto Blue Jays amounted to 45 million U.S.

www.statista.com

In contrast, the Leafs are making hand over fist, which actually hurt this teams chances to building a real Cup winner in my opinion. They want sexy over substance as it pads their broader revenue.


My guess is that eventually the Blue Jays will be moved down south by another owner some day. A sad reality but Oakland experienced it and they have a much longer history and following than the Blue Jays.

The Toronto Blue Jays are a solidly middle class team even with the Canadian economy baked in. If they're relocation candidates there would be 15 MLB teams ready to get up and play musical chairs as well.

 

[Menzinger]

Jays were also top 10 in attendance, Oakland dead last. I don't really see the connection here

 

[rojac]

I personally think that eventually, after the Bell deal closes and they buy out Tanenbaum, Rogers will "sell" the Jays to MLSE. They will then either take MLSE public while maintaining control (which I'm pretty sure is possible) or they simply bring in a number of minority investors.

For those of you claiming the Jays are a problem spot for Rogers, is it your theory that this is a new discovery for Rogers? Because spending $400M on the Rogers Centre renovsyions would seem to indicate a commitment. Also, without knowing the profitability of Jays broadcasts, can we really say what Rogers makes or loses on them? And if I recall correctly, the Jays don't get paid any money for their TV and radio rights.

 

[rocketman588]

Those MLS valuations are laughable. No one would pay those prices.

To be fair the yotes went for 1.2 bill so maybe it's not that much of a stretch for the MLS team in LA. Somehow have the 9th best avg attendance in the world with a restrictive cap and no relegation

 

[Evilhomer]

I think it's as simple as Rogers' seeing the explosion in value of professional sports teams over the past decade and having cash on hand to fleece BCE out of its stake at a time when BCE is desperate for cash. I very much doubt that BCE would have been interested in selling its stake had it not been in such a dire financial position.

 

[TMLBlueandWhite]

How did the Leafs go up by a billion dollars in one year?

These are some lofty valuations. You're telling me they made so much money last year they went up 40% in twelve months. Whatever methodology they used to come up with that figure is far beyond my infantile pea brained conprehension.

Seems more likely Forbes is just pulling numbers out of their butts.

Revenue only went up 12% and income only 5%. So how the hell does the company go up 50%. The answer is simple: they fudge the numbers.

"Hockey’s soaring valuations have less to do with revenue, however, than with revenue multiples."

They used a 12.3 multiplier for the Leafs. The largest of any other hockey team. I guess when the team isn't making any more money the solution is to count the money they are making as more valuable.

A buck is a buck, unless you're the Leafs, in which case it's twelve bucks.

 

[LeafsNet]

Did a quick Google search and came across this for AHL teams. The AI came up with this, but it’s based on this website which is mostly concerned with squad value rather than entire market value.

AHL | Team Rating | Season 2024-2025 | Benchrates

American Hockey League Team Rating Season 2024-2025 based on Squad Values

benchrates.com

1. Wilkes-Barre/Scranton Penguins: $9,916,086
2. Abbotsford Canucks: $9,452,639
3. Syracuse Crunch: $8,564,248
4. Ontario Reign: $8,302,097
5. Providence Bruins: $8,069,652
6. Grand Rapids Griffins: $8,001,100
7. Hershey Bears: $7,666,968
8. Tucson Roadrunners: $7,647,964
9. Laval Rocket: $7,624,759
10. Toronto Marlies: $7,277,276