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?
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).
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?