Forbes Releases Annual Financial Glimpse At NHL

FORBES magazine released its annual study of NHL franchises. The magazine did not release its traditional individual team valuations because of the cancellation of the ‘04-05 season. Following are the various economic characteristics the magazine highlighted:

FORBES' '05 NHL STANDOUT TEAMS
Most Valuable Team	Maple Leafs	$325M
Least Valuable Team	Hurricanes	$65M
Most Expensive Game To Attend^	Devils	$310
Least Expensive Game To Attend^	Hurricanes	$171
Biggest Increase In Franchise Value^^	Maple Leafs	86%
Biggest Decrease In Franchise Value^^	Panthers	-26%
Highest Operating Income^^	Maple Leafs	$85M
Highest Operating Loss^^	Blues	$91M
Most Valuable Team Brand	Maple Leafs	$41M
Least Valuable Team Brand	Oilers	$11M
Highest Media Revenues	Rangers	$28M
Lowest Media Revenues	Predators	$11M
Best-Managed Franchises^^^	Senators	148
	Devils	129
	Lightning	125
Worst-Managed Franchises^^^	Rangers	44
	Capitals	83
	Mighty Ducks	83

NOTES: ^ = Based on Team Marketing Report’s estimated cost of tickets, concessions, merchandise and parking for a family of four. ^^ = Most recent five years. ^^^ = Based on wins-per-player costs for the past five seasons, with playoff wins counting double. A score of 100 is average (FORBES, 11/28 issue). Forbes Senior Editor Michael Ozanian: “The impact of the lockout was to strengthen and help franchise values and help profitability. It has completely put the onus on the owners. If they can’t make the league go now, they have nobody to blame but themselves. There are no more excuses” (L.A. TIMES, 11/15).

NHL RESPONSE: NHL VP/Group Communications Bernadette Mansur: “For more than seven years, the NHL has not provided financial information to Forbes for this article. And, for more than seven years, the article has been filled with inaccuracies” (THE DAILY).

Richard Peddie Discounts Forbes’ Data

MAPLE LEAFS: MLSE President Richard Peddie, on Forbes’ valuation for the Maple Leafs: “It’s not even close.” Peddie added that the Maple Leafs’ actual operating profit “is much less once you account for taxes and the fact that MLSE pays [C$27M] per year on its debt.” But Ozanian said, “I had a banker tell me he could find a buyer and sell the Maple Leafs tomorrow for $300[M], so I think $325[M] is very reasonable.” Ozanian noted the Devils sold last year for $125M and said, “What’s a better deal, $325[M] for the Maple Leafs, including the revenue they get from the building, or $125[M] for the Devils?” (TORONTO STAR, 11/11).

PANTHERS: Panthers Majority Owner Alan Cohen said that he paid $85M for the team in ’01 and that “while he has no desire to sell it, he could get [$150-175M] for it now.” Panthers COO Michael Yormark: “I’m not quite sure how [Forbes] came up with that information. I have not spoken to Forbes, nor has the NHL, so for them to say they know our value is irresponsible” (PALM BEACH POST, 11/11).

SENATORS: Senators GM John Muckler, on the team ranking first in performance as it relates to player costs: “Part of it’s skill and part of it is management. We try to sign our players for their proper value, but I think a lot of our success has to do with the farm system, being able to promote people” (OTTAWA CITIZEN, 11/11).