A team’s market value "increases after winning the sport’s top prize," which means the Penguins "could be worth as much as" $700M, according to a source cited by Matthew Gutierrez of the PITTSBURGH POST-GAZETTE. But Focus Investment Banking Managing Dir Fred Rock said that because the Penguins "are a popular brand and winners of two championships" since '09, this year’s Stanley Cup win "may not increase the team’s value as much as one would think." There are far more influential factors including "the price at which other teams in the league have sold, the number of bidders and the financial state of the league." Pittsburgh’s market "is limited compared with the larger cities" of N.Y., Chicago and L.A. Clubs in these larger markets "tend to sell for much larger amounts." But in many ways, Pittsburgh "acts like a large market." The Penguins "have one of the highest payrolls in the league and arguably the league’s premier player" in C Sidney Crosby. The Penguins "have had 431 consecutive sellouts." They also "hold the development rights to the 28 acres of the former Civic Arena property in the Hill District." Those development rights "will be factored into the terms of the contract." With a few other hockey clubs on the market -- including the Hurricanes -- the average bid for the Penguins "will likely be lower than it might be if they were the only property available." Vanderbilt Univ. economics professor John Vrooman said that it "may dilute the Penguins’ winner’s premium" (PITTSBURGH POST-GAZETTE, 6/18).
