Firm wants to buy ENTIRE NHL for $3.5b
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03-03-2005, 12:27 PM
Join Date: Feb 2002
Location: Ranger fan in Philly
I understand that they wouldn't expect an immediate return on their investment, but they would have to (a) rebuild the fanbase to prelockout levels, which will take some serious time, regardless of the articles people have written that state hockey fans are like sheep; and (b) maintain the cost level so that the league is profitable. I can't see that happening for a long time if the league's financial outlook is as bleak as they say it is. Franchise values and actual profits are two entirely different animals.
The only benefit I could see from this is that it removes all barriers to contraction. If it goes through, and the new ownership sees that a number of small, nontraditional market teams are having the most trouble recovering from the lockout and that the league as a whole would be more profitable as a niche sport for the major markets, they can easily contract the teams.
Also, I've heard (I don't know personally) that MLS's ownership situation is somewhat similar to this. If anyone here follows MLS and has some info, it'd be appreciated.
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