NHL Operating Incomes Analysis

By , September 15, 2011 2:05 pm
Where all the Dallas Stars revenue went...

Where all the Dallas Stars revenue went...

So this article was inspired by some talk over at the Putting On The Foil Forum about financial problems some teams in the NHL are having… namely the New Jersey Devils and the Dallas Stars. I thought I’d dig a little deeper, knowing that there is information from Forbes about teams’ operating incomes available to the general public. Why are these teams in such hardship when it seems like they’ve always done well?

Stastical uber analysis by Moi

OK, Click the link for a pic of an Excel doc (maybe I’ll upload this thing to Google Docs later) I made based on Forbes NHL Team Valuation reports.

First off… an important note: Take this with a grain of salt! That is because these numbers might not be 100% accurate. Plus the values are a bit off already in that it (as they state at Forbes) they don’t include “interest, taxes, amortization, depreciation”. Also keep in mind we don’t have last year’s numbers yet. However, I think they still give us an overview to see what teams have been succeeding and which have been keeping their head above water.

Dallas… a recent article stated that they were in financial hardship and are selling the team and declaring bankruptcy (the ownership group is). Well, if you look at the Forbes numbers, it looks like this team is still doing quite well. So I kind of wonder if the problems the Stars’ ownership group is having is because of the Stars or if it’s because of their other businesses/teams that they own, etc. Anyone with insight on that, feel free to share.

Anyways, I thought I’d use this info to point out that keeping this league afloat (and this should be obvious) are profits by Toronto, Montreal, New York, and to lesser extents Detroit and Vancouver, DALLAS, Edmonton and Chicago.

Your bottom feeders are:
Phoenix, Florida, New York Islanders, Columbus, Carolina, Atlanta, Nashville, Buffalo, St. Louis, Washington (a team that is losing money despite Ovechkin being there).

Here’s a sorted version of that table I did up above.

Note: I am in no way a dollars and “sense” (sic) guy. So I may be severely oversimplifying things here. But it just seems to me like the Dallas Stars aren’t really a bankrupt team so much as the ownership group is bankrupt for other reasons. The Devils seem to have been losing money up until recently, although I’d say once you figure out all the missing numbers (taxes, etc.) they’ve probably lost money every year since 2006.

Where would this league be now without Toronto, Montreal and New York though?

6 Responses to “NHL Operating Incomes Analysis”

  1. Racki says:

    Quick explanation of this pic I created: http://puttingonthefoil.com/wpfiles/wp-content/uploads/2011/09/operatinginc.png

    While it says it in the legend, people might not read anyway :P…..

    Red = Really bad… Green = Really good. Yellow = basically a team is making profit, but probably not a whole lot. It gets more red as a team gets worse in the negative operating income, and more green as a team is in the positive income.

  2. Mr.Majestyk says:

    When teams had deep playoff performances they made lots of money

  3. Racki says:

    Definitely true. The last 3 years haven’t been good to the Stars, but they did have one big 3 round run too (which explains the spike in 08). Carolina is a good example of that too… piss poor ever year, but only slightly piss poor when they beat us in the cup :P Detroit another good example.

    Washington.. how can you not be in the black with Ovechkin there? The love affair is ending? Pittsburgh’s decline is also probably disturbing too. Wait till they watch the year without Crosby.

  4. Just wanted to leave a bit of information here:

    You are essentially correct in that the Dallas Stars are not as in bad a financial situation as it’s being made out to be.

    The team is for sale because Tom Hicks, the previous owner (technically current), owned not just the Stars but the Texas Rangers and Liverpool FC. He then defaulted on $525 loans tied to all three teams and basically just gave up, deciding to not pay the loans and to sell the teams instead.

    Selling the Rangers alone did not satisfy the lenders that now held the debt. Hence, the Dallas Stars were now tied to that debt as well. He needs to sell the team in order to satisfy all debts.

    Going to bankruptcy court is a clean way of satisfying all lenders, cleansing assets and assuring that the sale is completed to everyone’s liking. It has nothing to do with the team itself going broke.

  5. Howdy says:

    Very interesting, couple surprises in there (Dallas among them, IMO).

    One note, Capitals numbers for last year/this year may look very different, now that they own the building.

  6. Racki says:

    Brandon Worley:
    Just wanted to leave a bit of information here:

    You are essentially correct in that the Dallas Stars are not as in bad a financial situation as it’s being made out to be.

    The team is for sale because Tom Hicks, the previous owner (technically current), owned not just the Stars but the Texas Rangers and Liverpool FC. He then defaulted on $525 loans tied to all three teams and basically just gave up, deciding to not pay the loans and to sell the teams instead.

    Selling the Rangers alone did not satisfy the lenders that now held the debt. Hence, the Dallas Stars were now tied to that debt as well. He needs to sell the team in order to satisfy all debts.

    Going to bankruptcy court is a clean way of satisfying all lenders, cleansing assets and assuring that the sale is completed to everyone’s liking. It has nothing to do with the team itself going broke.

    Hey Brandon, thanks for confirming that for me!

    BTW, welcome to the site to you and Howdy

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