View Single Post
02-15-2013, 09:02 AM
MoreOrr's Avatar
Join Date: Jun 2006
Location: Mexico
Country: Canada
Posts: 24,649
vCash: 500
Originally Posted by MNNumbers View Post
I have been thinking this through for a year, now, and i keep coming to the same conclusion:

1) The league has 3 teams for sale (that's if they really are expanding, and I hope they don't - the whole league is not stable enough for that....). Anyway, 3 teams for sale. 2 expansion plus the Coyotes. The league owns them all.

2) Since the league owns them all, why is there is a difference in price for any of them?

3) Further, there are only 3 markets right now with any hope of being ready for a team in the next 5 years - SEA, QC and TOR2 (Although I have lots of hope for Markham, but there is a long way to go there. And, Hamilton seems to get lots of noise on this board, but I am not aware of a push in the city itself.)

4) 3 teams. 3 markets. Each market has a value. The league owns all 3 teams.

Conclusion: There is no windfall in expansion fees. If the league does sell 2 expansion teams, they won't make any more off them than off of selling the Yotes.

Can someone explain why I am wrong? I keep asking this, and no one ever answers. It seems like we all just assume that "EXPANSION = BIG BUCKS for the league."

Help me out here.
Yes, MNN, that does make sense. Actually, once I thought about it, it made sense on two levels. First, why actually should an expansion franchise cost more to obtain that a relocated franchise? The relocated franchise is generally already in full development, a finished product, so-to-speak. But in this case, as you say, the League owns the team, so it's as if they own all 3 of those locations that are available to be bought up.

I guess, someone will still say that regardless of the fact that the League owns the Coyotes, it's still a problem that they might eventually want taken off their hands, so generally the reduced cost is for taking that problem away. Nevertheless though, I'd still think that because of the added value of a developed franchise compared to an expansion one, that the cost should more or less even out, when taking the "help with a problem situation" into consideration.

MoreOrr is offline   Reply With Quote