First-time NHL franchises worth $1 billion on average

Average NHL franchise is now worth over $1 billion for the first time, at annual valuation released by Sportico on Tuesday. Sports Business Publications reports that franchise values ​​are up 9% year-over-year, a sharp increase as revenue has rebounded after the pandemic.

The NHL is still far behind other North American professional sports competitors. The average NFL team is worth $4.1 billion, while the average NBA team is $2.6 billion and the MLB team $2.3 billion, according to Sportico. But that made investors see the value of the NHL, where there are only so many professional sports brands on the market.

Sportico used an average multiple of 5.3 from revenue to value to calculate the valuation.

“These leagues and teams are great content creators,” David Blitzer, co-owner of Devils, told Sportico. “And you have a supply situation where there are very few new franchises being created, and demand for them is growing quite strongly, and you can see it coming up with the number of people showing up in the country. different scenarios to try and get in on the process.”

NHL Commissioner Gary Bettman said last month at the Board of Governors meeting in New York, the league generated a total of $5.4 billion last year, impressive considering some arenas have spent part of the season without fans in the building due to restrictions about health.

To the surprise of no one, the Toronto Maple Leafs are the league’s most valuable asset with an expected valuation of $2.1 billion. But the Leafs didn’t generate the highest revenue for the 2021-22 season by Sportico’s calculations – that would be the New York Rangers, which brought in $282 million in revenue, due to their run to the Conference Finals. Winter.

Arizona Coyotes lays out the consequences of franchise pricing. The tournament’s 32nd team is worth $465 million, still up 13% from the same period last year. Arizona is the only NHL franchise worth less than $600 million, according to Sportico. Coyotes can also greatly increase in value if they can finally get steel and shovels on the ground on a new arena in Tempe.

The prospect of a new arena is why no team has increased in value more than the Ottawa Senators, up 21%, to an estimated $655 million. That valuation is expected to rise even further, due to a signed Memorandum of Understanding for a promising new downtown arena in LeBreton Flats. Rebuilding Sens’ is ice-focused, attendance has averaged 15,017 this season, and there’s been a ‘Bill Wirtz Effect’ happening in the fanbase since the owner. Owner Eugene Melnyk died unexpectedly last March. According to Sportico, the Senators, owned in trust by Melnyk’s two daughters, are now beginning to explore the potential of a sale.

Since the Seattle Kraken already has an expansion fee of $650 million, it’s unlikely the NHL Board of Governors will want to approve a future sale for less than $700 million.

The NHL, which does not comment on or participate in the calculations of the story, is always tense with public league valuations like these. However, Sportico has received cooperation from eight NHL brands as part of a methodology and consultation with public records, market records and sports pricing experts to attempt to Try to accurately assess franchise value and revenue.

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