[NHL] Leafs again the richest club: Forbes


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Leafs again NHL's richest club: Forbes

Lower player salaries drive up franchise values

Nov. 10, 2006. 01:10 PM

The Maple Leafs are No. 1 again - just not in the standings.

Forbes magazine has released its annual list of team valuations and the Leafs remain the NHL's richest franchise with a value of $332 million (all figures U.S.). That's up slightly on the $325 million figure the magazine attached to the team last season, when it also topped the list.

Toronto edges out the New York Rangers, valued at $306 million, and the Detroit Red Wings, third on the list at $258 million.

The magazine, in a report released on its website, concludes that "hockey teams are worth more today than before the new collective bargaining agreement (CBA) because player salaries have gone down to 54 per cent of league revenue from 66 per cent."

The magazine, as an example, points to the Anaheim Ducks, which were purchased in 2005 for $70 million, just $20 million more than the team's price as an expansion franchise in 1992. Forbes now values the Ducks at $157 million.

The Leafs also topped the NHL in operating income (earnings before interest, taxes, depreciation and amortization) taking in, according to Forbes, $41.5 million. Next, again, was the Rangers, way back at $17.7 million.

All that money, however, does not help the Leafs be more competitive on the ice since one of the results of the 2004-05 lockout was a salary cap that, this year, limits teams to spending $44 million on player salaries.

Richard Peddie, the president of Maple Leafs Sports and Entertainment, was not immediately available for comment on the Forbes numbers but he has denounced them in the past, noting that the magazine does not have access to MLSE's numbers or the financial reports of other organizations.

http://www.thestar.com/NASApp/cs/ContentSe...4&t=TS_Home

  • 2 weeks later...

You'd think tha Habs would be number 1 or at least 2, considering we're sold out every game...

Selling tickets is nothing...

Theres lots of costs/sources of revenue like what you pay your arena, merchandise, television deals, balancing players/coaches/gm salaries, price of tickets and amount of season ticket holders, i don't even know the half of it...

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