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The Business of Hockey Discuss the financial and business aspects of the NHL. Topics may include the CBA, work stoppages, broadcast contracts, franchise sales, NHL revenues, relocation and expansion.

Average NHL team worth $282M?

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Old
11-18-2013, 10:26 AM
  #1
Maplestory*
 
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Average NHL team worth $282M?

Why aren't NHL teams worth as much as NFL, NBA or MLB teams? And the Leafs are barely worth the average of a NFL team.

http://www.forbes.com/sites/mikeozan...ble-nfl-teams/

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11-18-2013, 10:31 AM
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Dynamo Washington
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Television contracts.

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11-18-2013, 10:33 AM
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Jot
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USA has 10X more population then Canada. Thats 10X more fans for their respective sports teams.

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11-18-2013, 10:35 AM
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laundryman
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The NHL doesn't take in nearly as much revenue as the other major sports in the U.S. Football stadiums usually seat 60,000+ and tickets are far more expensive. Beyond that I don't think that the NHL's TV contract is worth nearly as much as the others.

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11-18-2013, 10:41 AM
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Quote:
Originally Posted by Dynamo Washington View Post
Television contracts.
Exactly. It's why teams like Jacksonville and Buffalo can be worth so much while being the equivalent of some of the NHLs worse teams.

Only NFL teams make more money (in profit) then the Leafs.

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Old
11-18-2013, 10:41 AM
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Quote:
Originally Posted by laundryman View Post
The NHL doesn't take in nearly as much revenue as the other major sports in the U.S. Football stadiums usually seat 60,000+ and tickets are far more expensive. Beyond that I don't think that the NHL's TV contract is worth nearly as much as the others.
Why is football so expensive? But hockey gear is already expensive though.

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11-18-2013, 10:49 AM
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Quote:
Originally Posted by laundryman View Post
The NHL doesn't take in nearly as much revenue as the other major sports in the U.S. Football stadiums usually seat 60,000+ and tickets are far more expensive. Beyond that I don't think that the NHL's TV contract is worth nearly as much as the others.
Yes, but the NHL has an 82 game schedule, where the NFL only has a 16 game schedule. Just something to take into account if we're talking about straight ticket revenue.

Baseball is where the money is... ~50,000 seats in a 162 game season.

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11-18-2013, 10:50 AM
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The NFL's TV revenue is so high that it covers the entire team's salary costs before they sell a single ticket.

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11-18-2013, 10:59 AM
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Interesting fact about the NFL, the average game takes 4 hours of televised time to play, the ball is actually only in movement for 11 minutes for the entire game.

That's a lot of advertising time.

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11-18-2013, 11:01 AM
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TheOtherScott
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Originally Posted by Dynamo Washington View Post
Television contracts.
Revenue sharing, too. The NFL's revenue sharing deal is essentially to split all league revenue equally between the 32 teams.

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11-18-2013, 11:03 AM
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Originally Posted by Metro Misfits View Post
Interesting fact about the NFL, the average game takes 4 hours of televised time to play, the ball is actually only in movement for 11 minutes for the entire game.

That's a lot of advertising time.
Yeah there was a thread recently where OP thought there were too many commercials during an NHL period (3). In the NFL, it's almost insufferable:

Intro
Commercial break
Coin toss
Commercial break
Kick off
Commercial break

Injury with 5 seconds left in the quarter
Commercial break
End of quarter
Commercial break

TD
Extra point
Commercial break
Kick off
Commercial break


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11-18-2013, 11:03 AM
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Average game isn't 4 hours, most of the games tht start 1 ET are over by 4:30 ET with maybe a couple stragglers, lucky if the average game is 3:30

Baseball is kinda like that as well, most of the game the ball isn't actually in play

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11-18-2013, 11:06 AM
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Quote:
Originally Posted by laundryman View Post
The NHL doesn't take in nearly as much revenue as the other major sports in the U.S. Football stadiums usually seat 60,000+ and tickets are far more expensive. Beyond that I don't think that the NHL's TV contract is worth nearly as much as the others.
Really? Baseball tickets in the places I've been in the States are dirt cheap. I can't speak for football tickets, but would they really cost more than hockey tickets in Canada? Usually, the cheapest tickets you can find are $50, and quickly get into the $100+ range.

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11-18-2013, 11:06 AM
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NFL does a brilliant job of selling drama. The ball is only in play for a few minutes but the build-up to each play is compelling to the fan with no rooting interest. The NHL should really try to buy some of NFL's production talent. They could teach NHL's production crew a thing or two about effective storytelling.

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11-18-2013, 11:11 AM
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Quote:
Originally Posted by Crease View Post
Yeah there was a thread recently where OP thought there were too many commercials during an NHL period (3). In the NFL, it's almost insufferable:

Intro
Commercial break
Coin toss
Commercial break
Kick off
Commercial break

Injury with 5 seconds left in the quarter
Commercial break
End of quarter
Commercial break

TD
Extra point
Commercial break
Kick off
Commercial break

This exactly .The NFL has an outrageous amount of commercials. Absolutely kills it for me most Sundays.

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11-18-2013, 11:14 AM
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Chfan
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Quote:
Originally Posted by Crease View Post
NFL does a brilliant job of selling drama. The ball is only in play for a few minutes but the build-up to each play is compelling to the fan with no rooting interest. The NHL should really try to buy some of NFL's production talent. They could teach NHL's production crew a thing or two about effective storytelling.
I agree. But the NFL is once a week. If the NHL starts trying to do storylines for every day, people are just gonna get tired of it.

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11-18-2013, 11:15 AM
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I agree. But the NFL is once a week. If the NHL starts trying to do storylines for every day, people are just gonna get tired of it.
Good point.

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11-18-2013, 11:17 AM
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Only way NHL even comes close to NFL is if somehow Canada's population goes up by 10x in the near future.

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11-18-2013, 11:21 AM
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Originally Posted by Ewan McGregor View Post
Only way NHL even comes close to NFL is if somehow Canada's population goes up by 10x in the near future.
But wait. From what I heard Canada actually is topping basketball more than hockey.

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Old
11-18-2013, 11:32 AM
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TV and merchandising contracts.. They don't even need people to go to games. That's an added bonus for them.

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11-18-2013, 11:36 AM
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Quote:
Originally Posted by Dynamo Washington View Post
Television contracts.
Nailed it right away.

The San Diego Padres, one of the 3 or 4 least visible teams in Major League Baseball, recently sold for $800 million. Why? Well, an owner with money to blow...but it still blew past the Forbes valuation just on the basis of the new television contracts.

MLB's new national television contract nearly doubled overnight and each team will be getting roughly $25.5 million per year starting next year. Throw in the fact that San Diego inexplicably has one of the most expensive RSN deals ($60 million a year for the small market Padres? The Cardinals get $14 million...yeesh), throw in revenue sharing (of which San Diego easily qualifies for) and you get why an also-ran team can double their value in a short couple years thanks to the fact that they're basically guaranteed to turn a hefty profit.

The NHL is still a gate-driven league...the Padres look to be ~$30 million in the black for next year without taking in a dime from tickets.

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11-18-2013, 11:44 AM
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I would think that the NHL is largely a gate-driven sport, more so than the other major sports. Approximately 2/3rds of a team's budget is driven through tickets sold...and that is why attendance is more critical for the NHL than for any other sport.

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11-18-2013, 12:07 PM
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Quote:
Originally Posted by Chfan View Post
I agree. But the NFL is once a week. If the NHL starts trying to do storylines for every day, people are just gonna get tired of it.
There is only one storyline in the NHL. Sidney Crosby. And he's been shoved down our throats for a few years now, people get tired of it. They need new things to talk about.

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Old
11-19-2013, 09:19 AM
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Originally Posted by hfgreg View Post
TV and merchandising contracts.. They don't even need people to go to games. That's an added bonus for them.
Actually, they do.

Well, money speaking they don't but they blackout markets that do not sell enough tickets (Jacksonville is the master in that area). That way, they diminish costs and force desperate owners (Bills owner bought a lot of tickets to keep the last game against Jets on air) to spend their own money.

If such a rule was implemented in NHL...well we would probably know only about 24-25 teams.

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