NHL Team Valuations Rise 10%; Maple Leafs Top Forbes List

NOTES: Revenues and operating income are for the '07-08 season. All figures in U.S. dollars. ^ = Value of team based on current arena deal (unless new arena is pending), without deduction for debt (other than arena debt). ^^ = Includes arena debt. * = Earnings before interest, taxes, depreciation and amortization.

HIGH ROLLERS: Badenhausen said of the Maple Leafs, "They seem to be immune to the idea that if you put a poor product on the ice, fans aren't going to show up." Badenhausen said that the club with "likely the brightest financial future" is the Penguins, whose $195M value grew 26% in the past year, "more than any of the other NHL franchises." The Penguins had risen 17% in value a year earlier. Badenhausen said the Penguins will "continue, most likely, to move up the ranks. They've got an exciting young team that is very marketable, they've got a fan base that is tuned in, and probably most important, they'll be getting a new arena in 2010" (BLOOMBERG NEWS, 10/29).

ON THE UPSWING: In New Jersey, John Brennan wrote, "after a league-worst" $15.3M operating deficit in last year's valuations, the Devils this year were listed with a "positive operating income" of $1.9M. The "turnaround is due to the Devils' shift from sharing revenues with the New Jersey Sports and Exposition Authority to the club keeping almost all of the revenues" at the Prudential Center. Badenhausen said, "It's a brand new day for the Devils, going from a lease that was one of the worst in the league to a deal more like most NHL teams get. They've also been able to generate a lot of non-hockey revenues that they get to keep" (Bergen RECORD, 10/30).

NOTES: In San Jose, John Ryan reported the Sharks' $2.4M operating income figure "differs significantly from what Sharks CEO Greg Jamison" previously stated. Jamison said that the team "lost [$2-3M]." The Sharks "point out that Forbes compiles those numbers without any cooperation from the NHL" (SAN JOSE MERCURY NEWS, 10/30)....Badenhausen said that the Flyers' $1.8M loss is "based on many factors, including the team's payroll." He said that the '07-08 payroll was $66M, which includes "salaries, buyouts, benefits and workman's compensation charges" (PHILADELPHIA INQUIRER, 10/30).

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