I doubt that Forbes puts significant effort into these puff pieces.
I've noticed in the past that in some of the team blurbs they've simply cut-and-pasted from previous years (with out-of-date info).
I think you are right. I imagine they have a excel spreadsheet which they have an intern/low level staffer update each year based on certain questionable assumptions made years ago, possibly plugging in such bogus data as official "announced attendance" figures and ticket prices, etc. from such questionable sources as the Team Marketing Report. I even question if they've made use of any recent legitimate public information and leaks to improve their article/data.
In terms of investing advice, I would highly recommend ignoring magazines such as Forbes and Fortune. They have been wrong so many times, I wonder if they do it intentionally -- i.e., pump and dump.
ďI have great respect for Forbes as a premier business magazine but I have always viewed Forbes attempt at estimating sports teams values or peoplesí net worth as purely entertainment for its readers. I have never been able to reconcile where Forbes gets their financial information for sports values or for that matter peoplesí net worth. Is Trump really worth $2 billion as Forbes claims, or is it a lot less, which is what the NY Times claims. With respect to your 3 [questions], my comments are below:
1. Forbes financial information is not accurate. For example, the Thrashers donít have any debt and the financial information doesnít reconcile to ours. In addition, I have no idea where Forbes came up with our purchase price for the Thrashers as $80 million.
2. Does the ranking surprise me? I havenít given it much thought except to say that it is the same as the Atlanta Falcons. Is the ranking a reflection on how they are run? I think Arthur Blankís answer to that question would be no.
3. We have worked hard to separate the Belkin issue from either management or the teams. The Hawks have improved every year we have owned the franchise and are currently ranked in the top 6 in the NBA based on the start to our season. With respect to Thrashers, I had strong concerns last February; however, once [Ilya Kovalchuk] became captain and we made some trades, we had a very strong finish. I like our core young players as well as the addition of [Rick] Dudley in the front office. We are playing .500 hockey, are 5-2-1 on the road against some good teams and our franchise player has been out for 3 weeks.
With respect to Belkin, we had a major victory in court. The benefit to that win is that I have been able to sleep better at night. It certainly hasnít impacted Kovy or Joe Johnsonís sleep. In other words, this has impacted us personally and it is not an issue that has impacted decisions we have made with either franchise. It seems that writers want to continue keeping this issue in the news when it was a 2005 story.
You know that data for the Predators is Wrong according to Fan 590, Globe and Mail, TSN, and other Canadian media outlets. William Boots Del Baiggo is the hand picked by Gary Bettman, 100% owner of the Predators. Forbes list some guy named David Freeman
Also interesting to note that the owners are wanting to sell the team less than a year after buying all 14000 tickets to steal Revenue Sharing from the Canadian teams. Doing that also locked in their lease for 5 more years, making it harded to sell the team.
Last edited by Gnashville: 11-13-2009 at 07:55 PM.
If the owners of the Cash Cow teams don't like the agreement that they agreed to why not sell out??? Or are thay making more money themselves????
Detroit yes, the rest no.
As for your question about selling out I think you nailed it the next CBA will be very interesting. I think the big issue will be the NHL itself not the NHL vs. the NHLPA. I think the big market teams will do everything possible to have a better deal, this one is way to much in favour of small market teams.
I doubt Calgary is "losing money". I suspect the figures include financing costs and creative accounting. There's no other explanation for how the Flames can have higher revenue than the Oilers, yet be "losing money" while the Oilers are making money.
Same situation in Ottawa I believe.
It's my understanding Melnyk owns SBP in addition to a couple other assets relating to the area... though I seem to recall him going on record that he does sets the team budget with the assumption of playoff revenue to break even - so last year would have hurt some if that's the case.
So while the team itself may be losing money, its by design and overall I believe all the related assets are on the positive side of the balance sheet in total.
Finally, someone has reported what we've been saying in Phoenix all along. Not that it's going to change any minds, but perhaps some will now give credence to this report as they did to everything Shoalts and the G&M reported all summer:
Not all teams have been invited to this party. In most cases this is the fault of owners who took their eyes off the puck. Prime example: The Phoenix Coyotes spent several months in bankruptcy protection and were just purchased for around $140 million by the league. In essence, the league is assuming most of the teamís liabilities and will operate it until a buyer who wants to keep the Coyotes in Phoenix can be found. Prior ownership was more concerned with real-estate development near the arena than producing a winning hockey team. New ownership will have a tough time rebuilding fan loyalty and attracting non-hockey events like concerts to Jobing.com Arena with the NBAís Phoenix Suns playing in a competing arena just 15 miles away.