Forbes Valuation Reports $6.1M Operating Profit For NHL In '08-09

The NHL had its "most profitable year smack in the middle of a recession," as the league during the '08-09 season "posted an average operating profit" of $6.1M, according to Badenhausen, Ozanian & Settimi as part of FORBES' annual NHL team valuations. The $6.1M figure was the "highest figure in the 12 years Forbes has been tracking the league's finances." Aggregate revenue during the '08-09 season "increased $70[M]" from the '07-08 season to $2.82B, and "despite the sour economy and tighter credit markets, the average NHL franchise is worth" $223M, $3M more than the previous year. Badenhausen, Ozanian & Settimi noted "big revivals in markets like Chicago, Pittsburgh and Washington, and new NHL partners," have "helped boost gate receipts and sponsorship revenue." And the "biggest revenue growth area last year for the NHL was local TV." But "not all teams" have seen off-ice success, and "in most cases this is the fault of owners who took their eyes off the puck" (FORBES.com, 11/11).

RK	TEAM	VALUE	1-YR % +/-	DEBT/ VALUE	REVENUE	OPERATING INCOME
1	Maple Leafs	$470M	5%	31%	$168M	$78.9M
2	Rangers	$416M	1%	0%	$139M	$27.7M
3	Canadiens	$339M	2%	71%	$130M	$31.3M
4	Red Wings	$337M	11%	0%	$130M	$27.4M
5	Flyers	$273M	-1%	24%	$101M	$3.1M
6	Bruins	$271M	3%	44%	$108M	$11.6M
7	Blackhawks	$258M	26%	0%	$108M	$20.9M
8	Stars	$246M	-10%	81%	$97M	$12.4M
9	Canucks	$239M	1%	46%	$109M	$20.3M
10	Devils	$223M	0%	112%	$97M	$1.4M
11	Penguins	$222M	14%	45%	$93M	$3.3M
12	Wild	$210M	-3%	54%	$95M	$1.3M
13	Kings	$208M	-1%	79%	$92M	$10.6M
14	Ducks	$206M	2%	17%	$94M	$4.8M
15	Avalanche	$205M	-11%	16%	$84M	$3.4M
16	Flames	$200M	-2%	15%	$95M	$-0.8M
17	Senators	$197M	-5%	66%	$90M	$-3.8M
18	Lightning	$191M	-4%	55%	$80M	$-2.2M
19	Sharks	$184M	3%	24%	$84M	$-5.0M
20	Capitals	$183M	15%	37%	$83M	$-4.9M
21	Hurricanes	$177M	5%	51%	$82M	$-4.6M
22	Blues	$176M	9%	68%	$80M	$-2.7M
23	Sabres	$170M	1%	29%	$79M	$-5.2M
24	Oilers	$166M	-5%	60%	$83M	$9.4M
25	Blue Jackets	$165M	5%	27%	$77M	$-9.9M
26	Panthers	$159M	-2%	50%	$74M	$-13.6M
27	Predators	$156M	-5%	52%	$71M	$-5.7M
28	Islanders	$149M	-3%	67%	$62M	$-5.6M
29	Thrashers	$143M	-10%	46%	$68M	$-1.8M
30	Coyotes	$138M	-3%	101%	$66M	$-18.5M

NOTES: Revenues and operating income are for '08-09 season. Value of team based on current arena deal (unless new arena is pending) without deduction for debt (other than arena debt). Debt/value includes arena debt. Operating income is earnings before interest, taxes, depreciation and amortization.

Maple Leafs, Rangers Seeing Financial Success Despite On-Ice Struggles

BIG MARKET, BIG REVENUE: Forbes National Editor Michael Ozanian indicated that he is "not surprised" the Maple Leafs and Rangers are "perched at the top -- despite both struggling to field consistently strong teams on the ice." Ozanian: "You can't compare those teams to small-market and warm-market teams because Toronto is a hockey hotbed and New York is just the biggest market in the country. Those teams also have multiple sports in their arenas. Toronto has a basketball team they can also sell sponsorships to and package with hockey. The same thing with the Rangers and the Knicks." Meanwhile, Flames President & CEO Ken King "challenged the methodology used for the study." King: "I respect the magazine but I know this; they're not looking at our books" (CANWEST NEWS SERVICE, 11/12).

PACKING A BITE: FORBES' Peter Schwartz wrote the Sharks have "yet to hoist the Stanley Cup, but when it comes to building teams that deliver bang for the buck, they're the closest thing the National Hockey League has to a dynasty." In the four seasons since the NHL introduced a salary cap, "by the metric of player costs to wins," the Sharks are the "only team to finish each season in the top eight among the league's 30 teams." Sharks GM and former NHLer Doug Wilson has a "managerial approach that's more in line with an MBA grad than a retired player," as he is "open to new ideas ... and contributes to weekly strategy sessions for the bevy of properties controlled" by Sharks Owner Silicon Valley Sports & Entertainment (FORBES.com, 11/11).