Post by razorsedge on Jan 30, 2011 20:21:01 GMT -5
NHL brushfires still burning
January 30, 2011 16:01:00
Kevin McGran
Sports Reporter
While the NHL paints a rosy picture, citing robust TV ratings and sponsorship growth, sore spots remain. The divide between the haves and have-nots in the 30-team league is huge.
By the league’s own accounting, it is set to establish a revenue record of close to $2.9 billion (all figures U.S.). Building on the buzz from the last playoffs and Winter Classic, the league may also cash in with a significant U.S. TV contract.
But there are weaknesses, mostly in the Sunbelt. In its annual review, Forbes.com concluded the NHL has “become a two-tiered league.” Forbes.com reports that seven teams made money — lots of it — while 16 lost money last season.
The league’s 30 teams combined to generate $160 million of operating income, but the top seven (Maple Leafs included) combined to earn $241 million, none making less than $13 million. The six biggest losers (the Coyotes, Panthers, Capitals, Thrashers, Sabres and Lightning) were a combined $63 million in the red.
It’s no surprise that many teams are for sale, or that suitors are hard to find.
“It’s not a good business decision” to buy a team, said Richard Powers, assistant dean at the Rotman School of Management at the University of Toronto. “There may be some upside in the future depending on how the economy recovers and how these teams perform, but you’d have to have pretty deep pockets to jump into an NHL franchise in the States.”
PHOENIX COYOTES
Average attendance: 10,796
The Desert Dogs remain the league’s most troubled child and most likely candidate to move, with folks in Winnipeg hoping for a return of the Jets. The team is orphaned now, really. The league owns it. The City of Glendale is responsible for any financial losses until a deal with billionaire Matthew Hulsizer closes. If it does. The deal was supposed to be done Dec. 30, then Jan. 14 and now has been delayed again. Glendale is trying to raise $100 million through a bond issue and recoup the money over 30 years in other ways such as parking revenue from around Jobing.com Arena. But the municipal bond market has essentially crashed. There are reports the city is trying to raise the bond privately, much harder to do. Meanwhile, the Goldwater Institute, a taxpayers’ rights group, is weighing its legal options to prevent what it sees as the city essentially handing over $100 million to a billionaire to help him buy the team. A successful suit could essentially stop the deal in its tracks and send the team — that has never turned a profit in the desert — looking for a new home.
ATLANTA THRASHERS
Average attendance: 13,053
Ownership has been telling reporters for years the team is not for sale. Then the Atlanta Journal-Constitution dug up a lawsuit that suggests the team has in fact been on the block. The ownership group, known as Atlanta Spirit, is suing the law firm that wrote its ownership agreement, claiming the contract was “fatally flawed” and prevented them from selling the team. They have been trying to sell since 2005 and have lost $130 million, the lawsuit said. This team, if it moves, is most closely linked to interests in Quebec, although Winnipeg is another possibility.
DALLAS STARS
Average attendance: 14,968
This success story from the Sunbelt — a Stanley Cup winner, consistently competitive with a decent fanbase — is for sale because owner Tom Hicks is bankrupt. It wasn’t the Stars’ fault. Owners are tough to come by when financial institutions aren’t all that willing to lend. Former Anaheim Ducks president Tony Tavares is in place as interim president. Investors remain interested, but that’s as far as things have gone.
CAROLINA HURRICANES
Average attendance: 15,584
Owner Peter Karmanos Jr. is up front about his need for new investors. He has hired the New York City-based investment bank Allen & Co. in a bid to sell half the team. His previous partner, Tom Thewes, died two years ago. Karmanos is looking for North Carolina-based partners.
NEW YORK ISLANDERS
Average attendance: 9,856
Owner Charles Wang says his team is not for sale despite the lowest attendance in the oldest building in the league, and repeated failed attempts to build a new arena. “We are working very hard to try and keep the team on Long Island because that’s my home,” he said in a rare interview on Sirius XM Satellite Radio. “That’s where it belongs.” He might sell if someone gave him what he paid for it, but the franchise’s value has plummeted. Paid attendance on Jan. 27 vs. Carolina was 4,976. Brooklyn and Kansas City, Mo., would be interested if the team looks to move.
COLUMBUS BLUE JACKETS
Average attendance: 13,214
An early expansion success story has failed miserably. The Jackets have about 2,000 fewer season-ticket holders than they did last season. Forbes says the team is for sale; the team denies it. One thing that could keep owners happy is a revised lease with the city for Nationwide Arena. The Jackets claim the lease is one of the main reasons they have been losing $10 million to $12 million a year. They’d like money from parking and naming rights.
EDMONTON OILERS
Average attendance: 16,839
Not for sale, but fans in Edmonton worry the Oilers may be on the move. Billionaire owner Daryl Katz is unhappy with Rexall Place and wants the city to build a downtown arena. He says he would contribute $100 million. Katz is looking beyond Edmonton, though, into management arrangements with other arenas, and fans fear one of those— perhaps Copps Coliseum in Hamilton or the hoped-for arena in Quebec City — will end up with the Oilers. That said, it’s hard to believe they would ever leave Edmonton.
BUFFALO SABRES
Average attendance: 18,322
Terry Pegula, an oil and gas drilling executive, is the only bidder for the Sabres. Principal owner Thomas Golisano wants to sell. The team lost money, according to Forbes, despite 14,825 season tickets and a renewal rate of 95 per cent. The rights to operate HSBC Arena may be the true profit-maker and the reason to stay put.
ST. LOUIS BLUES
Average attendance: 19,150
They had 26 sellouts to start the season, which may be why ownership no longer wants to sell outright. But private equity firm TowerBrook Capital Partners still does want to sell part of the team. Two unnamed groups are said to be interested.
NASHVILLE PREDATORS
Average attendance: 15,999
The Predators — always looking for investors, it seems — manage to make the playoffs, average 15,000 fans a game and qualify for revenue sharing year after year. Managing partner David Freeman has stepped down as CEO over a probe of his finances.
LOS ANGELES KINGS
Average attendance: 18,061
Forbes reported the Kings were fielding offers, but the team says it is not for sale. Owner Philip Anschutz has built an empire that is expanding but based in the Staples Center, and it’s hard to imagine he’d give up part of that.
www.thestar.com/mobile/sports/hockey/nhl/article/930532--nhl-brushfires-still-burning?bn=1
January 30, 2011 16:01:00
Kevin McGran
Sports Reporter
While the NHL paints a rosy picture, citing robust TV ratings and sponsorship growth, sore spots remain. The divide between the haves and have-nots in the 30-team league is huge.
By the league’s own accounting, it is set to establish a revenue record of close to $2.9 billion (all figures U.S.). Building on the buzz from the last playoffs and Winter Classic, the league may also cash in with a significant U.S. TV contract.
But there are weaknesses, mostly in the Sunbelt. In its annual review, Forbes.com concluded the NHL has “become a two-tiered league.” Forbes.com reports that seven teams made money — lots of it — while 16 lost money last season.
The league’s 30 teams combined to generate $160 million of operating income, but the top seven (Maple Leafs included) combined to earn $241 million, none making less than $13 million. The six biggest losers (the Coyotes, Panthers, Capitals, Thrashers, Sabres and Lightning) were a combined $63 million in the red.
It’s no surprise that many teams are for sale, or that suitors are hard to find.
“It’s not a good business decision” to buy a team, said Richard Powers, assistant dean at the Rotman School of Management at the University of Toronto. “There may be some upside in the future depending on how the economy recovers and how these teams perform, but you’d have to have pretty deep pockets to jump into an NHL franchise in the States.”
PHOENIX COYOTES
Average attendance: 10,796
The Desert Dogs remain the league’s most troubled child and most likely candidate to move, with folks in Winnipeg hoping for a return of the Jets. The team is orphaned now, really. The league owns it. The City of Glendale is responsible for any financial losses until a deal with billionaire Matthew Hulsizer closes. If it does. The deal was supposed to be done Dec. 30, then Jan. 14 and now has been delayed again. Glendale is trying to raise $100 million through a bond issue and recoup the money over 30 years in other ways such as parking revenue from around Jobing.com Arena. But the municipal bond market has essentially crashed. There are reports the city is trying to raise the bond privately, much harder to do. Meanwhile, the Goldwater Institute, a taxpayers’ rights group, is weighing its legal options to prevent what it sees as the city essentially handing over $100 million to a billionaire to help him buy the team. A successful suit could essentially stop the deal in its tracks and send the team — that has never turned a profit in the desert — looking for a new home.
ATLANTA THRASHERS
Average attendance: 13,053
Ownership has been telling reporters for years the team is not for sale. Then the Atlanta Journal-Constitution dug up a lawsuit that suggests the team has in fact been on the block. The ownership group, known as Atlanta Spirit, is suing the law firm that wrote its ownership agreement, claiming the contract was “fatally flawed” and prevented them from selling the team. They have been trying to sell since 2005 and have lost $130 million, the lawsuit said. This team, if it moves, is most closely linked to interests in Quebec, although Winnipeg is another possibility.
DALLAS STARS
Average attendance: 14,968
This success story from the Sunbelt — a Stanley Cup winner, consistently competitive with a decent fanbase — is for sale because owner Tom Hicks is bankrupt. It wasn’t the Stars’ fault. Owners are tough to come by when financial institutions aren’t all that willing to lend. Former Anaheim Ducks president Tony Tavares is in place as interim president. Investors remain interested, but that’s as far as things have gone.
CAROLINA HURRICANES
Average attendance: 15,584
Owner Peter Karmanos Jr. is up front about his need for new investors. He has hired the New York City-based investment bank Allen & Co. in a bid to sell half the team. His previous partner, Tom Thewes, died two years ago. Karmanos is looking for North Carolina-based partners.
NEW YORK ISLANDERS
Average attendance: 9,856
Owner Charles Wang says his team is not for sale despite the lowest attendance in the oldest building in the league, and repeated failed attempts to build a new arena. “We are working very hard to try and keep the team on Long Island because that’s my home,” he said in a rare interview on Sirius XM Satellite Radio. “That’s where it belongs.” He might sell if someone gave him what he paid for it, but the franchise’s value has plummeted. Paid attendance on Jan. 27 vs. Carolina was 4,976. Brooklyn and Kansas City, Mo., would be interested if the team looks to move.
COLUMBUS BLUE JACKETS
Average attendance: 13,214
An early expansion success story has failed miserably. The Jackets have about 2,000 fewer season-ticket holders than they did last season. Forbes says the team is for sale; the team denies it. One thing that could keep owners happy is a revised lease with the city for Nationwide Arena. The Jackets claim the lease is one of the main reasons they have been losing $10 million to $12 million a year. They’d like money from parking and naming rights.
EDMONTON OILERS
Average attendance: 16,839
Not for sale, but fans in Edmonton worry the Oilers may be on the move. Billionaire owner Daryl Katz is unhappy with Rexall Place and wants the city to build a downtown arena. He says he would contribute $100 million. Katz is looking beyond Edmonton, though, into management arrangements with other arenas, and fans fear one of those— perhaps Copps Coliseum in Hamilton or the hoped-for arena in Quebec City — will end up with the Oilers. That said, it’s hard to believe they would ever leave Edmonton.
BUFFALO SABRES
Average attendance: 18,322
Terry Pegula, an oil and gas drilling executive, is the only bidder for the Sabres. Principal owner Thomas Golisano wants to sell. The team lost money, according to Forbes, despite 14,825 season tickets and a renewal rate of 95 per cent. The rights to operate HSBC Arena may be the true profit-maker and the reason to stay put.
ST. LOUIS BLUES
Average attendance: 19,150
They had 26 sellouts to start the season, which may be why ownership no longer wants to sell outright. But private equity firm TowerBrook Capital Partners still does want to sell part of the team. Two unnamed groups are said to be interested.
NASHVILLE PREDATORS
Average attendance: 15,999
The Predators — always looking for investors, it seems — manage to make the playoffs, average 15,000 fans a game and qualify for revenue sharing year after year. Managing partner David Freeman has stepped down as CEO over a probe of his finances.
LOS ANGELES KINGS
Average attendance: 18,061
Forbes reported the Kings were fielding offers, but the team says it is not for sale. Owner Philip Anschutz has built an empire that is expanding but based in the Staples Center, and it’s hard to imagine he’d give up part of that.
www.thestar.com/mobile/sports/hockey/nhl/article/930532--nhl-brushfires-still-burning?bn=1