As requested,
here's the link for the Waterloo stat
Thanks for posting that article from the Spec. It took a bit of digging but I found the full text of it (it's quite long with the tables at the end included):
What would it be worth? TheSpec.com - Local - What would it be worth?
Study says a team in Hamilton could reach $600m in market value
Joan Walters
The Hamilton Spectator
(May 23, 2009) The business of hockey can be a treacherous undertaking -- just ask the Phoenix Coyotes. They have been hemorrhaging money for years.
But potential revenue streams available to team owners, arena managers, suppliers and others is nothing to be sneezed at.
Especially in Canada. The hands-down most profitable team for years has been the Toronto Maple Leafs; and the top 10 teams by value include Montreal and Vancouver.
BlackBerry billionaire Jim Balsillie has been trying for years to bring a team to Hamilton to serve southern Ontario. And it's not just because he's a lifelong hockey player and a believer in the game.
A study released last fall says a second NHL team in the region could mean big bucks. SportsCorp Ltd., a Chicago-based sports consulting firm, found that a team here could have a market value of $400 million to $600 million, after factoring in what the Leafs are worth, and whether the market could absorb another team.
Balsillie's acquisition of the Coyotes for $212.5 million US could be an especially shrewd investment.
The Phoenix team has been weighed down by financial problems almost since the beginning, despite hot prospects when it first got off the ground in the NHL's sunbelt expansion.
A copy of the Phoenix team consortium's Arena Management and Lease Agreement, filed in Arizona as part of owner Jerry Moyes's bankruptcy filing, shows the potential that seemed to exist.
Without providing specific income expectations, it cites many of the game's traditional revenue streams, including licensing, arena naming rights, tickets, premium seats and suites, and concessions, such as food and beverage.
But in Phoenix, some of that promise was never realized.
Even so, the city of Glendale claims that an offer to keep the ailing team in Arizona - thought to be in the range of $130 million - would actually produce better financial results than a move to Canada. That's because Glendale, a Phoenix suburb, could launch a claim for about $500 million US against the Coyotes for failing to live up to an agreement to play until 2035 at the Jobing.com arena, named for a Phoenix-based job recruiter.
That 10-year, $30-million corporate name deal was struck in 2006, about three years after the arena opened. The team's annual losses have been in the range of $20 million to $30 million US.
The city of Glendale sought a court injunction Thursday to prevent the team's move.
It says in the filing that a recent study conservatively estimates the team's economic impact on the city at 540 jobs, $199 million in industry output, $38 million of "value added" in labour income property tax income and business taxes, and $1.2 million in sales tax.
Attendance in Phoenix has been sagging, though, not a good thing for the league, since about 50 per cent of NHL revenue is tickets.
Hockey-mad Canadians might remedy the problem.
Last year, an NHL report on ticket revenues for its 30 teams showed the six Canadian franchises account for almost a third of the $1.1 billion US in ticket revenue.
In Hamilton, sell-out games are taken as a strong possibility.
Even though Copps Coliseum is not up to NHL standards - and costly renovations would be needed - it is anticipated ticket prices would be in line with the rest of the league. In 1997, when a publicly-backed consortium tried for an NHL expansion team, the plan was to fit Copps with 93 private boxes, each leased for $78,000 a season.
In 1997 dollars, the annual net take from suites alone would have been $6 million.
All in, it was anticipated that an NHL team starting play in 1998-99 could turn an annual profit of $7 million to $8 million, based on revenues of up to $67 million a year in its first five years.
Forbes magazine's 2008 annual report on the NHL places Calgary Flames at No. 8 for operating income of $7 million US.
It is conceivable that a Hamilton team would rank right up there within the league's top 10.
jwalters@thespec.com
905-526-3302
With spectator wire services
THE LATEST OBSTACLE?
Two New York senators wrote to NHL commissioner Gary Bettman on Thursday siding with the league in its bid to prevent the move to Hamilton. The Sabres, one of the NHL's strongest U.S. small-market franchises, generates about 20 per cent of revenue from across the border in Ontario - fans who would presumably keep their wallets in Canada if there were a local team.
Team values
1 Toronto Maple Leafs 448
2 New York Rangers 411
3 Montreal Canadiens 334
4 Detroit Red Wings 303
5 Philadelphia Flyers 275
6 Dallas Stars 273
7 Boston Bruins 263
8 Vancouver Canucks 236
9 Colorado Avalanche 231
10 New Jersey Devils 222
11 Minnesota Wild 217
12 Los Angeles Kings 210
13 Ottawa Senators 207
14 Chicago Blackhawks 205
15 Calgary Flames 203
16 Anaheim Ducks 202
17 Tampa Bay Lightning 200
18 Pittsburgh Penguins 195
19 San Jose Sharks 179
20 Edmonton Oilers 175
21 Buffalo Sabres 169
22 Carolina Hurricanes 168
23 Nashville Predators 164
24 Florida Panthers 163
25 St. Louis Blues 162
26 Washington Capitals 160
27 Atlanta Thrashers 158
28 Columbus Blue Jackets 157
29 New York Islanders 154
30 Phoenix Coyotes 142
Value in US million dollars based on current arena deal (unless new arena is pending) without deduction for debt
Source: Forbes magazine NHL Report, 2007-08 season
Operating income
1 Toronto 66.4
2 Montreal 39.6
3 New York Rangers 30.7
4 Vancouver 19.2
5 Dallas 14.2
6 Detroit 13.4
7 Edmonton 11.8
8 Calgary 7.4
9 Pittsburgh 5.1
10 Ottawa 4.7
Value in US million dollars.
The Forbes list calculates operating income as earnings before interest, taxes, depreciation and amortization.
Average ticket price
Toronto 76.15
Montreal 64.26
Vancouver 62.05
Boston 61.40
Minnesota 61.28
Philadelphia 60.25
New Jersey 57.15
Calgary 55.81
New York Rangers 54.96
Edmonton 54.17
Florida 52.61
Chicago 52.22
Pittsburgh 51.45
NHL AVERAGE 49.66
New York Islanders 48.84
Ottawa 48.82
Atlanta 48.51
Columbus 47.76
Nashville 47.22
Los Angeles 47.20
Detroit 46.60
Anaheim 43.50
San Jose 43.07
Tampa Bay 42.41
Washington 41.66
Colorado 40.62
Carolina 38.38
Dallas 37.80
Phoenix 37.45
Buffalo 36.43
St. Louis 29.94
Source: Team Marketing Report, 2008
Values in US million dollars.
What value Copps?
It's been speculated that Copps Coliseum might carry a different moniker if an NHL team arrives. That's because arena naming rights are an attractive sponsorship opportunity for major corporations. They pay big money to affix their names and logos.
It was William Wrigley, the chewing gum magnate and owner of the Chicago Cubs, who started the trend in the 1920s. He elected to name the park Wrigley Field. Today about 90 per cent of NHL teams play in a name-sponsored arena.
Here are some NHL arena examples:
* Prudential Financial purchased the naming rights for the Prudential Center, in New Jersey, in January 2007 for $105.3 million over 20 years.
* The Maple Leafs play in Toronto's Air Canada Centre. Naming cost for the airline: $40 million over 20 years.
* Carolina Hurricanes also have a Canadian-based name sponsor. They play in the RBC Centre. The Royal Bank of Canada paid $80 million for 20-year rights.
* The cost of a naming rights and promotional sponsorship deal for the Pepsi Center, where Denver plays, was about $68 million.
Source: hockey.ballparks.com, NHL, Spectator file
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