• Home
  • Management
  • Startup/Entrepreneur
  • Gamechangers
  • Tech/E-Commerce
  • Career
  • Global Business
  • Women's Business

  • Hockey’s Most Valuable Teams

    When it comes to the P&L statement, the NHL has become a two-tiered league.

    When it comes to profits and team valuations, the NHL has become a two-tiered league.

    In Pictures: Hockey’s Most Valuable Teams

    There is parity on the ice in hockey. Since a lockout canceled the National Hockey League’s 2004-’05 season and ushered in the salary cap era, a different team has won the Stanley Cup every year. Two big-market teams (Anaheim Ducks, Chicago Blackhawks), one mid-market team (Detroit Red Wings) and two small-market teams (Carolina Hurricanes, Pittsburgh Penguins) have won the championship. You can root for hockey almost anywhere in the U.S. and Canada and have a shot at seeing a local team capture the Cup.

    But when it comes to the P&L statement, the NHL has become a two-tiered league. During the 2009-’10 season the 30 teams combined to generate $160 million of operating income (earnings before interest, taxes, depreciation and amortization) on revenue (net of proceeds required for arena debt) of $2.9 billion. But seven teams (the Toronto Maple Leafs, New York Rangers, Montreal Canadiens, Red Wings, Philadelphia Flyers, Black Hawks and Vancouver Canucks) combined to earn $241 million, with none making less than $13 million. Meanwhile, 16 teams were in the red, with the six biggest money-losers (Phoenix Coyotes, Florida Panthers, Washington Capitals, Atlanta Thrashers, Buffalo Sabres and Tampa Bay Lightning) dropping an aggregate of $63 million.

    The big disparity in profit can almost always be explained by local television rights and arena economics. The Maple Leafs, Canadiens and Rangers each generate more than $25 million a year from their cable rights fees and more than $40 million from premium seating (luxury suites and club seats). In contrast, the Coyotes, Lightning and Thrashers each pull in less than $10 million from local television and under $15 million from premium seating.

    Slide Show: Hockey’s Most Valuable Teams

    The gap in profits has greatly affected team values.

    Read More:

    http://www.forbes.com/2010/11/30/leafs-rangers-canadiens-business-sports-hockey-valuations-10-most-valuable-teams.html

    Upstart: Business and Management for 29-40 Year Old Professionals

    Filed Under: Gamechangers

    Tags:

    About the Author:

    RSSComments (0)

    Trackback URL

    Leave a Reply

    You must be logged in to post a comment.