Forbes analyzes NHL teams
Forbes.com recently issued a report regarding how the NHL is doing financially since the lockout. This pretty much sums it up:
The average hockey team is now worth $180 million and makes an operating profit (in the sense of earnings before interest, taxes, depreciation and amortization) of $4.2 million. During the 2003-2004 season, the last before the lockout, the average hockey team was worth $163 million and lost $3.2 million.
The Toronto Maple Leafs are worth the most at $332 million making them the most profitable team in the NHL, even though they didn’t make the playoffs last year. Pretty impressive if you ask me. The New York Rangers came in second with a value of $302 million, which should probably increase over the next few years if they continue making the playoffs. Last season was their first playoff appearance since 1997.
Mike Ilitch bought the Detroit Red Wings in 1982 for $8 million. Today, his hockey team is worth $258 million. According to the Forbes evaluation, the Wings early playoff exit cost Ilitch at least $5 million in profits. Major corporate sponsors for the Wings include Molson Coors, Motor City Casino, Miller Brewing, MBNA, and Detroit Medical Center.
A few interesting tidbits from the Detroit section…
1) The average Red Wings game ticket is $51, which is $6 more than the New York Rangers’ average ticket but $19 less on average than the Toronto Maple Leafs’ tickets. The Dallas Stars worth $10 million less than the Wings has the average ticket price at $60. And here I am complaining about ticket prices at the Joe.
2) I thought that it was interesting that the Detroit revenue has fallen from the 2003-2004 season, which the Wings made $97 million, to the $89 million revenue from last season. In 2001-2002, the Wings not only won the Cup but made $114 million in revenue and were valued at $268 million.
Forbes.com also put together a slideshow featuring “The Ultimate Hockey Franchise” which combines the best of a variety of teams. Mike Ilitch was named the best owner.
Our criteria for a good owner: consistently wins, puts a good team on the ice and doesn’t fleece the fans. The Detroit Red Wings’ Ilitch has overseen a team that has made the playoffs 15 straight years, netting three Stanley Cup titles. And despite a rabid fan base, the average ticket price at Joe Louis Arena is just $43, the 18th highest in the league, according to Team Marketing Report.
Not surprisingly, the Washington Caps were given the title of best website. Their owner, Ted Leonsis, certainly has interacted the most with hockey bloggers.
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2 Responses to “Forbes analyzes NHL teams”
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November 12th, 2006 at 6:47 am
Well the Rangers have one of the prettiest goaltenders ever. So it must cost a bit to keep up his beautiful face.
November 12th, 2006 at 11:04 am
Haha. Yes this is true.