Ryan Wilson: How much is your favorite NHL team worth? How much is your favorite NHL team worth?

Ayyyy

Forbes always underestimates a team's value though.

Dallas way to high

Forbes always underestimates a team's value though.

Right? Rangers should be an extra bill on Kreider's presence alone

$7.50 for a ticket?

It costs $19.50 to see the Victoria Royals (WHL) play.....

Right? Rangers should be an extra bill on Kreider's presence alone
- j.boyd919

Not talking about the Rangers in particular, it's just that if you look at any professional sports team that has been sold in the past decade vs the value Forbes assigned it that year, Forbes is always waaaaaaaay below.

Is that pricing for (frank)ing real for tickets...

So that 500 million expansion fee is going to equate to about a 250 million value for the Vegas team. I'm no money manager but I'd say that's prob not a great investment.

Is that pricing for (frank)ing real for tickets...
- SRam19

Yup. The Islanders can't even give away tickets.

And the stadium is STILL 75% empty with tickets that price. Crazy.

Yup. The Islanders can't even give away tickets.

And the stadium is STILL 75% empty with tickets that price. Crazy.
- rangerdanger94

My god if I lived there I would be goin to every game. I love Johnny T.

So that 500 million expansion fee is going to equate to about a 250 million value for the Vegas team. I'm no money manager but I'd say that's prob not a great investment.
- Gerk

People don't buy sports teams as investments. They buy them because they're rich AF and like sports and want to build a family legacy.

Not talking about the Rangers in particular, it's just that if you look at any professional sports team that has been sold in the past decade vs the value Forbes assigned it that year, Forbes is always waaaaaaaay below.
- rangerdanger94

oh I know, I was just having fun hahaha

oh I know, I was just having fun hahaha
- j.boyd919

Forbes had the LA Clippers valued at $575 million before they were sold for $2 billion

Forbes had the LA Clippers valued at $575 million before they were sold for $2 billion
- rangerdanger94

Well if your worth about 29 billion why not.

Well if your worth about 29 billion why not.
- SRam19

Exactly. And things are worth whatever people are willing to buy/sell it for.

Ted Starkey ‏@TedStarkey 21s21 seconds ago
For perspective, Caps were valued at $134M in 2000. Rangers, then tops at $263M, now tops at $1.25B.

Forbes had the LA Clippers valued at $575 million before they were sold for $2 billion

And I think everyone agrees it was an overpayment (2nd highest bid in NA sports history). Ballmer put in a bid because he badly wanted ownership of a sports team.

My god if I lived there I would be goin to every game. I love Johnny T.
- SRam19

Apparently you haven't seen this team play. It's (frank)ing painful to watch. It's like the Keystone Cops and 3 Stooges joined together to form a hockey team.

And I think everyone agrees it was an overpayment (2nd highest bid in NA sports history). Ballmer put in a bid because he badly wanted ownership of a sports team.
- DeflatedPucks

Well in Ballmer's defense this purchase was less of a boondoggle than his purchase of Nokia's mobile unit.

And I think everyone agrees it was an overpayment (2nd highest bid in NA sports history). Ballmer put in a bid because he badly wanted ownership of a sports team.
- DeflatedPucks

Well wasn't 1 bil of that to pay Kobe's insane salary owed?

Those ticket prices are nuts, just sent my friends down there a link to it so there will be 5 extra people there tonight

Apparently you haven't seen this team play. It's (frank)ing painful to watch. It's like the Keystone Cops and 3 Stooges joined together to form a hockey team.
- Isleshockeyman

I remember I went to a Habs Canucks game last year, lower bowl as my buddy has season tickets. The people behind us paid 400$ per ticket for a regular season game. Isles have been playing better hockey than the Canucks..

I remember I went to a Habs Canucks game last year, lower bowl as my buddy has season tickets. The people behind us paid 400$ per ticket for a regular season game. Isles have been playing better hockey than the Canucks..
- Codes1087

Not this year. Worst team in the league. Gallant gets fired, yet Crappy still gets behind the bench each game night. It's ludicrous.

P.S. hoping you guys score 12 tonight. Need any help we can get to get Crappy and Snow out of there.

Exactly. And things are worth whatever people are willing to buy/sell it for.
- rangerdanger94

Here's the flaw in that logic and I mean this with all respect:

the Dodgers are the only other sports team (also LA interestingly) to sell for more than $2b in NA. However, unlike the Clippers, the Dodgers new owners received :
- the Dodgers team
- the arena
- an expiring television contract & TW waiting in the wings
- land surrounding the stadium and parking lot

vs. what the Clippers had (the team, practice facility, and a lease with Staples arena)

http://www.nytimes.com/20...chelle-sterling.html?_r=1

Financially, the Clippers in the year before the sale had reveues of $128 million and once you take away expenses, are left with $10-17m in profits (depending on the source).

Time Magazine did a calculation that the only way to get a $2b valuation would be if revenues would rise to $500m. Which would require a revenue multiple of 500 by their current standards).
Remember, this deal was signed before the opportunity to sign a Lakers-esque contract.

http://time.com/2800607/s...s-angeles-clippers-worth/

Here's a nice piece from Grantland on the Clippers valuation where he used a regression on the coefficient of franchise value (and the difference between 2004 and 2014 - lets be honest, NBA team valuations rose through the roof post-lockout):

http://fivethirtyeight.co...dollars-buy-the-clippers/

The Forbes valuation is very low but the sale of the team for $2b even more so.


It's also pretty common knowledge Ballmer was
a) bummed that his friends from MS owned a sports team and had other commitments after leaving MS
b) he lost out on the Sacramento team

Its fine and dandy to say the value of anything is what people would pay for it, but you have to understand if the Clippers revenue multiple were used for any NBA team it would be ludicrous. Just in 2013 the Kings (Sacramento) sold for $534 and the Warriors for $450m. Even factoring the LA market, anything over 1b is an overpayment.

The flaw with valuations as to what people are willing to pay is that they won't hold up and more importantly, won't extend to other places. Points to note:

- Do you really think the Dot Com bubble was unusual in bringing down companies like Cisco that had P/E ratios of 200?
- Tulip bubble: Ill let you read this one, its pretty interesting. In the 1500s Tulips sold for more than 10X the salary of a yearly employed skilled artisan. Perhaps the first speculative bubble of its kind.

https://en.wikipedia.org/wiki/Tulip_mania

In summary, I think everyone realizes
A) Ballmer was desperate and had lots of cash
B) The Forbes estimate is low (for all NBA franchises - except the Lakers - there's might be too high) but $2b valuation is way beyond the annual cash flows

Now, I'm just hoping the;

#gunnersblogcurse

Won't come into play today!! (Even though he poop bagged the Islanders it wasn't soo bad??? Was it? :urg.

I really hope this inconsistent poop show stops & we can actually

1. Score goals before putting the 56th sog
2. Muzza gives them nothing
3. We play something that resembles 'give a (frank)' hockey
4. The most important, we beat the (frank)ers in their empty (frank)ed up poopty arena (& Sid puts a puck through the windscreen - is that car still parked in the corner? Ownership should just turn the arena into a Wilsons parking lot - cost you $20 to park there get a free game of hockey!).