Penguins' owners looking for record $750M for team
The owners of the Pittsburgh Penguins are asking $750 million (U.S.) for the team, but face long odds of finding a buyer who’s willing to pay that much because of the flagging North American economy and uncertainty over the future of the Canadian dollar, sports investment bankers say
Currency analysts with Bank of America Merrill Lynch said in August that the Canadian dollar could fall to 65 U.S. cents before the end of 2016.
NHL deputy commissioner Bill Daly rejected the idea that currency swings would impact the Penguins sale.
"Canadian dollar would not play into a transaction like this at all,” he wrote in an email.
The NHL’s Canadian national television revenue is worth $433 million (CAD) for each of the 30 NHL teams — roughly $14 million (CAD) per season. With a Canadian dollar that averages 90 cents U.S., that yearly income converts to about $13 million (U.S.). If the dollar is worth 75 cents U.S., the Canadian income converts instead to $10.7 million (U.S.).
Some bankers justify the steep price by pointing out other recent NHL team sales.
The Florida Panthers were sold for $160 million in 2013, Forbes magazine reported, while Carolina Hurricanes owner Peter Karmanos told TSN in an interview his team is worth $450 million. The NHL reportedly wants $500 million apiece for expansion teams.
“Franchise expansion fees usually act as the price floor for team values,” Dorweiler said. “But I don’t see that happening now. In this case, even if an expansion team is worth $500 million, I don’t think that means the Florida Panthers are worth that much, or even $300 million.”
http://www.tsn.ca/talent/sources-pen...-team-1.354678
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Originally Posted by steelerdude15
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