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11-30-2011, 01:52 PM
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Forbes 2011: Team Values Hit All-Time High

The annual Forbes estimates of NHL team values, revenues, et al.
More business is boosting National Hockey League team values but climbing player costs are eroding the sport’s profitability.
The average hockey team is now worth $240 million, 5% more than last year due to a 5% increase in revenue during the 2010-11 season, to an average of $103 million per team.
But margins are getting squeezed. During the 2010-11 season the league posted operating income (earnings before interest, taxes, depreciation and amortization) of $126 million, 21% lower than the previous year. Main reason: Player costs increased 11%, to $59 million. Last season 18 of the league’s 30 teams lost money even before they had to pay bank loans or write down assets, compared with 16 the prior year.

The league’s salary cap, set at 57% of revenue, is too high for some teams to be profitable . As a result, expect the National Hockey League to undergo a cantankerous labor negotiations when the owners and players union begin to hammer our a new collective bargaining agreement to replace the current six-year deal that expires in September . The NHL must move much closer to the 48% model the NFL agreed to before this season or the 50-50 revenue split National Basketball Association owners and players recently agreed to.
The last paragraph sounds like a lobbying effort on behalf of the NHL. What utter bunk.

Team valuations:

Video Clip (discussing Fehr):

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