Utah is number 1 in increased value.

[Mangosteen]

Utah Sees Massive Jump in Franchise Value

It didn’t take long for the Utah Hockey Club to make an impact on the NHL after their relocation from the Arizona Coyotes. Not only has a sense of stability in

www.si.com

Love hearing positive news!

Click to read more...

 

[Jamieh]

Utah Sees Massive Jump in Franchise Value

It didn’t take long for the Utah Hockey Club to make an impact on the NHL after their relocation from the Arizona Coyotes. Not only has a sense of stability in

www.si.com

Love hearing positive news!

Wonder how you would go about declaring AZ worth $675 million when they literally just sold for a billion?

 

[Jormungandr]

I love how Utah is claimed to be the same franchise as Arizona when the narrative fits. And at other times it’s not.

 

[Coyotedroppings]

I'm quite certain that every Boston fans left the Delta Center with all their digits intact, we need no more proof as to where the real market is.

 

[Arizonatah Coyetis]

Wonder how you would go about declaring AZ worth $675 million when they literally just sold for a billion?

The price Smith paid to buy and move the team included expansion fees.

 

[TheLegend]

No different than when the Clippers' value nearly doubles when Steve Ballmer comes along and he didn't even move the team.

Just like Winnipeg going from $170 million to over a billion now.

Wonder how you would go about declaring AZ worth $675 million when they literally just sold for a billion?

$675 million with no arena.

 

[Jamieh]

The price Smith paid to buy and move the team included expansion fees.

It was 1 billion for Mureulo and $200 million to League

 

[Arizonatah Coyetis]

It was 1 billion for Mureulo and $200 million to League

Yes. The NHL charged Smith $1.2B (expansion fee sized sum of money.) Gave $1B to convince Meruelo to go away and kept $200M for themselves.

This is how I understood it, at least:

The NHL preferred for Meruelo to build an arena, things to work out in Phoenix AND get $1B+ in expansion fees from Smith in Utah. It just didn't work out that way and they managed to solve a major problem and still get $200M in fees. The NHL has said that it considers Utah an expansion team, not a relocation. AM made out like a hawk in being convinced to sell, still doesn't mean the team was worth that much or that an appraiser would say the NHL paid what the going rate was. They overpaid to convince Meruelo to go away. An anomoly, not real value.

(Again that's how I understand it, anyways. Reserve the right to be wrong )

 

[Jamieh]

Yes. The NHL charged Smith $1.2B (expansion fee sized sum of money.) Gave $1B to convince Meruelo to go away and kept $200M for themselves.

This is how I understood it, at least:

The NHL preferred for Meruelo to build an arena, things to work out in Phoenix AND get $1B+ in expansion fees from Smith in Utah. It just didn't work out that way and they managed to solve a major problem and still get $200M in fees. The NHL has said that it considers Utah an expansion team, not a relocation. AM made out like a hawk in being convinced to sell, still doesn't mean the team was worth that much or that an appraiser would say the NHL paid what the going rate was. They overpaid to convince Meruelo to go away. An anomoly, not real value.

(Again that's how I understand it, anyways. Reserve the right to be wrong )

The only way to ever know the value of a sold item is the price it sold for....not sure how anyone can argue with that??

 

[TheLegend]

It was 1 billion for Mureulo and $200 million to League

The league owners essentially made 200 million for themselves by changing the unitforms on one team.

Fun fact.... Meruelo came away with probably 200 million himself.

 

[Arizonatah Coyetis]

The only way to ever know the value of a sold item is the price it sold for....not sure how anyone can argue with that??

If you and your neighbor have identical houses and he sells his for two times its appraised value because someone was either stupid or desperate and was willing to drastically overpay, does that mean your house is now worth twice as much or that that same house could turn around and re-sell for anything close to what he paid for it?

No. It's an anomaly and a severe overpayment. Just how I see it.

I can see your point though. If you're dying of thirst and the merchant only has one bottle of water left and increases the cost from $1 to $5 the water IS all of a sudden worth $5 even if only temporarily

 

[Jamieh]

If you and your neighbor have identical houses and he sells his for two times its appraised value because someone was either stupid or desperate and was willing to drastically overpay, does that mean your house is now worth twice as much or that that same house could turn around and re-sell for anything close to what he paid for it?

No. It's an anomaly and a severe overpayment. Just how I see it.

I can see your point though. If you're dying of thirst and the merchant only has one bottle of water left and increases the cost from $1 to $5 the water IS all of a sudden worth $5 even if only temporarily

It means nothing for my house but it sure as shit means his house was worth 2 times its appraised value. The value of any asset is what someone will pay for it and for the Coyotes that is clearly $1 billion.

Probably just a coincidence that Utah is worth the same $1.2 billion Smith spent to get the team hey????

 

[Arizonatah Coyetis]

It means nothing for my house but it sure as shit means his house was worth 2 times its appraised value. The value of any asset is what someone will pay for it and for the Coyotes that is clearly $1 billion.

Probably just a coincidence that Utah is worth the same $1.2 billion Smith spent to get the team hey????

I agree. But it doesn't mean that property value doesn't correct itself the next time around. Meruelo was paid $1B though. So like I said, I see your point. But the media, analysts, and whoever's are calling it differently. I'm mostly just trying to rationalize how they seem to be looking at it.

 

[Jamieh]

I agree. But it doesn't mean that property value doesn't correct itself the next time around. Meruelo was paid $1B though. So like I said, I see your point. But the media, analysts, and whoever's are calling it differently. I'm mostly just trying to rationalize how they seem to be looking at it.

Values change, that isn't news. But you can't really put a value on something for not much more than half what it sold for half a year ago. Lastvtear's valuation for the Coyotes has proven to be incorrect by a large amount.

 

[Arizonatah Coyetis]

Values change, that isn't news. But you can't really put a value on something for not much more than half what it sold for half a year ago. Lastvtear's valuation for the Coyotes has proven to be incorrect by a large amount.

Maybe. But theoretically, how does the term "overpayment" even exist if the sale price is always considered the real value of the item purchased? Or "paid a premium" or "got ripped off" or "bad deal?"

All terms for someone that willingly paid the price but usually shouldn't have because it's not worth it.

 

[Jamieh]

Maybe. But how does the term "overpayment" even exist if the sale price is always considered the real value of the item purchased? Or "paid a premium" or "got ripped off" or a "bad deal?"

Those terms are all irrelevant to value of an asset. The value is simply what someone is willing to pay, full stop. Me thinking $100 for a ticket to a hockey game is nuts does not make the value of that ticket anything when 11,000 people willing pay that rate.

 

[Arizonatah Coyetis]

Those terms are all irrelevant to value of an asset. The value is simply what someone is willing to pay, full stop. Me thinking $100 for a ticket to a hockey game is nuts does not make the value of that ticket anything when 11,000 people willing pay that rate.

The NHL was out of options. More like hostage money than fair value or worth IMO. Here's another term that applies to AM, "made out like a bandit!"

 

[TheLegend]

The NHL was out of options. More like hostage money than fair value or worth IMO. Here's another term that applies to AM, "made out like a bandit!"

Want to hear another shocker??

Both IceArizona and Andrew Barroway made money too.

 

[Jamieh]

The NHL was out of options. More like hostage money than fair value or worth IMO. Here's another term that applies to AM, "made out like a bandit!"

I don't think the article was about about fair value or any other description was. It was simply about the value of an asset and nothing else really matters when you have an actual sale price for that asset. How the value can be anything but the actual price someone paid is really not debatable? If you get your house appraised at $500K and put it on the market with the only offer you ever receive is $400K the value of your house certainly isn't $500K. If you get an offer of $600K the value certainly isn't $500K.