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Wonder how you would go about declaring AZ worth $675 million when they literally just sold for a billion?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
Love hearing positive news!
It was 1 billion for Mureulo and $200 million to League
)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??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
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.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
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.
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.
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.
That guy went from hero to zero fairly quickly and ultimately to the end of the Coyotes. Kinda wonder if Betman kinda forced the whole deal with his public proclamation that they couldn't stay in Glendale?? Either was Meruelo was a slimeball and unfortunately it paid of for him.
Murello tried for years to make it work in AZ, I don't think he is slimy. He purchased a distressed asset at a time when franchise values were increasing in value yearly. He weathered losses which turned out to be not much versus the exit price. Smart business man, buy low, sell high. Selling the team to another market was never plan A.
