Post by jets07 on Nov 15, 2009 12:29:58 GMT -5
(UPDATE FROM ATLANTA SPIRIT’S MICHAEL GEARON BELOW.)
This might seem like a random question: But do you care what your sports franchises are worth?
I ask because Forbes Magazine just came out with NHL franchise values, and the Thrashers are ranked 29th out of 30 teams — and the only team behind them is the Phoenix Coyotes, who went into bankruptcy in May and are now operated by the league.
Forbes values the Thrashers at $143 million. “The owners of the Atlanta Thrashers [who also control the NBA's Hawks] have spent more time fighting with each other than their hockey team has with its opponents,” the article states. “The franchise has been forced to give bundles of tickets away to fill seats.”
The magazine, in a financial breakdown of the team, later references the lawsuits between the Atlanta Spirit owners, saying: “A nasty and continuous legal battle amongst the eight owners over the value of the Atlanta Thrashers and Hawks, along with Philips Arena [Atlanta Spirit, LLC owns all three entities], has resulted in the team turning to Goldman Sachs for investors. Seven of the eight owners want to buy out Steve Belkin but thought his $143 million asking price for his 30% stake in the assets was far too steep. The owners have spent over $10 million in legal fees and the team has run significant net losses the past two seasons because it has missed the playoffs.”
The Belkin matter may finally be nearing a resolution, as his recent losses in court to the other owners may finally prompt him to sell his stake in the franchises and arena.
(UPDATE: Atlanta Spirit Michael Gearon emailed the following response when I asked him about the Forbes’ article and valuation.)
“I have great respect for Forbes as a premier business magazine but I have always viewed Forbes attempt at estimating sports teams values or peoples’ 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 peoples’ 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 don’t have any debt and the financial information doesn’t reconcile to ours. In addition, I have no idea where Forbes came up with our purchase price for the Thrashers as $80 million.
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.
This might seem like a random question: But do you care what your sports franchises are worth?
I ask because Forbes Magazine just came out with NHL franchise values, and the Thrashers are ranked 29th out of 30 teams — and the only team behind them is the Phoenix Coyotes, who went into bankruptcy in May and are now operated by the league.
Forbes values the Thrashers at $143 million. “The owners of the Atlanta Thrashers [who also control the NBA's Hawks] have spent more time fighting with each other than their hockey team has with its opponents,” the article states. “The franchise has been forced to give bundles of tickets away to fill seats.”
The magazine, in a financial breakdown of the team, later references the lawsuits between the Atlanta Spirit owners, saying: “A nasty and continuous legal battle amongst the eight owners over the value of the Atlanta Thrashers and Hawks, along with Philips Arena [Atlanta Spirit, LLC owns all three entities], has resulted in the team turning to Goldman Sachs for investors. Seven of the eight owners want to buy out Steve Belkin but thought his $143 million asking price for his 30% stake in the assets was far too steep. The owners have spent over $10 million in legal fees and the team has run significant net losses the past two seasons because it has missed the playoffs.”
The Belkin matter may finally be nearing a resolution, as his recent losses in court to the other owners may finally prompt him to sell his stake in the franchises and arena.
(UPDATE: Atlanta Spirit Michael Gearon emailed the following response when I asked him about the Forbes’ article and valuation.)
“I have great respect for Forbes as a premier business magazine but I have always viewed Forbes attempt at estimating sports teams values or peoples’ 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 peoples’ 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 don’t have any debt and the financial information doesn’t reconcile to ours. In addition, I have no idea where Forbes came up with our purchase price for the Thrashers as $80 million.
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.