As NHL expands, private equity could boost hockey's financial boom

Discussion in 'Fugu's Business of Hockey Forum' started by Llama19, Nov 30, 2019.

  1. Llama19

    Llama19 Registered User

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    NHL team values on rise ahead of next TV rights deal

    To quote:

    "With the National Hockey League in the midst of expansion and a top-dollar media rights deal on the horizon, existing team owners may have to join their peers in other sports leagues by looking to private equity firms as potential investors.

    The NHL has no rules prohibiting private equity firms from holding ownership stakes in franchises. However, NHL Deputy Commissioner Bill Daly acknowledged that private equity has rarely pursued investments in individual clubs during the league’s history.

    Wall Street’s focus on pure profitability does not easily translate to franchise ownership within sports leagues, where member clubs often place the health of the overall sport above a team’s individual needs. In addition, private equity firms are often unwilling or unable to alter their financial operations to comply with NHL ownership deals that are subject to board approval, [NHL Deputy Commissioner Bill ] Daly told FOX Business.

    Concerns about the ability of some NHL teams to maintain profitability, as well as foreign-exchange considerations for Canadian-based franchises, are additional obstacles to private equity investments, industry sources said."

    Source: www.foxbusiness.com/sports/nhl-private-equity-ownership-team-expansion
     
  2. Mud the ACAS

    Mud the ACAS St. Louis Blues: 2019 Stanley Cup Champions

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    A private equity firm saved the Blues in 2005, but there was still notable damage inflicted along the way. I see lots of the same kinds of squeezing done to maximize present cash flows at the expense of long-term revenue, which ultimately is going to weaken franchises. But, if we're solely talking about jacking up franchise values to make things look good on paper, sure - go with private equity firms. The higher the price, the more squeezing that will occur.
     
  3. madhi19

    madhi19 Just the tip!

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    I will laugh my butt off if NHL teams start getting the Toy R Us treatment.
     
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  4. supsens

    supsens Registered User

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    Lol NHL..no person would be stupid enough to “invest” in the NHL
     

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