Phoenix LXXII: Send in the Clowns
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02-19-2013, 03:47 PM
Join Date: Dec 2002
Originally Posted by
Let me ask you a hypothetical question. Let's pretend for a minute that we're not dealing with nhl franchises here. What if a pompous, arrogant little midget approached you and said that he had an 'asset' to sell to you. Upon doing your due diligence, you discovered that this 'asset' would likely lose between 10 and 20 million bucks per year. How much would you pay the midget for this 'asset'? Or, alternatively, would you possibly demand that the midget pay money to you for taking on the annual losses of the 'asset'?
That's not a fair statement. If your analysis showed losses, like any struggling business, but considerable upside, you'd have a case for buying that asset. It doesn't matter if it's 10 million or 100 million. If you find it a worthwhile venture, the selling price is agreeable. $90 million seems like the market agreed upon bottom value for an NHL team, regardless of history or market. There's little to no built in value beyond simply being an NHL club. If these assets were 100% portable with no concern for leases or anything of the sort, the value would be higher.
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