Mister F |
Jan 16, 2020 5:37 AM |
Quote:
Originally Posted by suburbanite
(Post 8800093)
Cool, except it's the new expansion fees that matter in this context, and entering markets that can afford the $650 million fee (Vegas and Seattle) makes more money than Saskatoon and Quebec which would never be worth that much.
The point is that a new franchise would never command the premium that it does today if the league never expanded beyond traditional hockey markets. There isn't a Canadian market left that can justify paying the current price tag for a franchise, there is now examples of two non-traditional American markets in the few years that can... Arizona and Florida are acceptable loss leaders to NHL management if it results in even a few successes like Vegas, Nashville, most likely Seattle, etc.
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The $500 million Quebec City bid was fully submitted. Quebecor could justify paying it and I think they know a bit more about the market conditions than you or me. With the way that all team values are increasing, $650 million is within reach of potential teams in cities like Hamilton or Quebec or a second team in Toronto. The expansion fee is a bet on the future by the entity that pays it.
Quote:
Originally Posted by JHikka
(Post 8800116)
These teams are worth double now what they were a decade ago.
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So has every Canadian team. Tripled actually. NBA team values are 3-5x higher than they were a decade ago. Same with MLB. Every team in both leagues is worth more than US$1 billion. NFL teams are almost all over $2 billion. Bettman's so called growth in the sunbelt is utterly unremarkable.
Quote:
Originally Posted by JHikka
(Post 8800116)
The NHL did well just by being first into the Vegas market. You can say "so far" as many times as you like but to date Vegas has been an unmitigated success for the NHL and Seattle will absolutely be the same.
The new media deal will be a sizable increase over the current deal. [ Source]
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Like I said, we'll see. The Golden Knights are the only game in town, they're still new, and they made it to the finals in their first year. They're about to have a juggernaut to compete with. If they're still doing this well financially when they're a decade old then my skepticism will have been misplaced.
If the next NBC TV deal doubles it'll still be smaller than the Rogers deal. If it triples it'll be only slightly bigger. Not very impressive considering the population of the US.
Quote:
Originally Posted by JHikka
(Post 8800116)
So what do you propose? Moving Florida to Quebec City? The NHL does not get into a better situation by doing this for reasons i've already outlined and others have mentioned in this thread. Florida holds onto a pretty key area for the league (Southern Florida) and one with a lot of potential if the Panthers ever field a strong team. Florida can bleed money as much as it likes in operations - NHL revenues have doubled in the last decade, sponsorships are at an all-time high, and a new TV deal will provide additional revenue. Florida losing money every year is worth it for the overall growth potential that areas serves (~7M in pop.). Arizona's gains this year in season tickets, merchandise, and overall interest should provide a good blueprint.
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Like I said, revenues doubling over a decade is hardly impressive considering what all the other sports have done. The NHL is treading water, relatively speaking.
I'm not proposing anything. This whole discussion got started when I simply pointed out that teams aren't located where the demand is and that if they were, there would be more teams in Canada and fewer in the US. For some reason a lot of Canadians seem to take offence to that fact and I have no idea why. In any case, nothing you've said has disproven my original point.
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