Firm wants to buy ENTIRE NHL for $3.5b
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03-04-2005, 07:09 AM
Join Date: Jul 2004
Location: Long Island
Originally Posted by
Team value has nothing to do with profits. The value of the Rangers comes from a few things. One is the arena they play in... probably the most widely known arena in hockey and basketball, only preceded by Lambow (I know it's spelled wrong, I'm tired), Yankee Stadium, Fenway Park and Wrigley Field in ALL of sports. Another is the city they're located in, being NYC. They have access to the biggest media outlets simply from being where they are. There are other things that go into it... but reputation from the things I mentioned is simply one. Brand recognition is another, and the Rangers brand is still pretty popular, despite the losing tradition we have right now.
To further the point, revenue generated doesn't mean a damn thing when it comes to the value of the league as a whole. Don't take this as a "firm offered 50% more than the league is worth" deal. This ties into what I said in the paragraph above.
But, in a more negative point... I want to know how a firm from Wall Street of all places would offer that much to buy a business that's losing more than $200 million a year. I get the feeling that those Wall St. guys don't believe it either. It just smacks of poor business decisions... which somehow seems completely illogical to me coming from there.
You guys realize something though... if all 30 teams were owned by one single entity, then the issue of a salary cap becomes a moot point. There's no collusion anymore when it's just one owner and whoever owns the entire NHL just sets a budget and salaries won't escalate because the budget of the whole league is in mind. This is why trusts are bad for workers, although we are still talking millions of dollars here.
Tawnos , I understand all that you posted, I'm just baffled at how people ignore the fact that this is about irresponsible owners, and love throwing the word greed around in regards to the players and the union. Yet disregard the total lack of business savy and sense that has been displayed by the owners and actually applaud what they have done, with rhetoric like" at least they are trying to fix it!" How about ....its their own fault for screwing it up ,and they should each have to bear the burden on their own, of fixing it, and ride out the situation bad contracts and all! That's what any of us would have to do if we made a bad financial decision! No one held guns to these guys heads! Last time I checked, the majority of us were no different than the players in that we are all looking for the biggest wage posssible.
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