In these unconventional markets, many soccer fans screamed charges during the first years of the NHL’s rise to the Sun Belt because many of these clubs piled up losses both on and off the snow. Yet over the past five years, groups in Dallas, Las Vegas, Miami and Tampa have secured seven of the 10 games in the Stanley Cup Finals, including four names.
The Sun Belt has turned into a sports hotspot despite the fact that The Original Six has a story.
One NHL staff leader claims that Tampa is a Harvard case study on how to rebuild a company in a difficult market. ” Move Bolts” marketing publications the growing city, and the club’s sellout run did top 400 activities by month’s close, the longest in the NHL.
Lightning owner Jeff Vinik just sold a majority stake in the team at a$ 1.8 billion valuation, 14 years after he invested$ 170 million to buy the company. The price is higher than 13 sports clubs in Sportico’s MLB group prices.

Nevertheless, the NHL has been on a successful run. In the last 13 months, it has discovered solutions to its two biggest franchise problems ( Arizona and Ottawa ), and competition for the new Canadian TV deal is anticipated to result in a deal worth more than double or even triple if things go well. Arenas are packed for NHL games and concerts.
The result is the average NHL franchise is worth$ 1.79 billion, up 37 % from 2023 by Sportico’s calculations. The jump follows a 29 % gain last year and represents a 92 % increase since 2021, when the average team was worth$ 934 million. Collectively, the NHL’s 32 teams are valued at$ 57.3 billion, including team-related business and real estate held by owners, based on conversations with 40 bankers, lawyers, team managers, owners and professionals over the last six months ( click here for a detailed methodology and revenue for the team ).
The Toronto Maple Leafs lead the NHL for the fourth straight year at a$ 3.66 billion valuation, followed by the New York Rangers ($ 3.25 billion ), Montreal Canadiens ($ 2.93 billion ), Boston Bruins ($ 2.67 billion ) and Los Angeles Kings ($ 2.5 billion ).
A few group transactions over the past year have highlighted the rise in NHL team principles. Private equity executive Oliver Haarmann reached a deal in December to purchase 9 % of the New York Islanders for a roughly$ 1.7 billion valuation that does n’t include any sort of control. In 2021, the Islanders opened the$ 1.1 billion UBS Arena, in partnership with Oak View Group.
When Ryan and Ashley Smith purchased the Arizona Coyotes and relocated the company to Salt Lake City under the momentary title Utah Hockey Club, the NHL’s never-ending story came to an end in April.
The Smiths paid$ 1.2 billion for the team, with$ 1.2 billion going to the Coyotes ‘ Alex Meruelo ownership and$ 200,000 being split as a relocation fee for the other 31 franchises. Since the beginning of 2022, Ryan Smith has been talking with NHL director Gary Bettman about why Utah is the ideal location for an NHL company. Some owners believe that the Utah Jazz owner and Qualtrics co-founder was paid a steal at$ 1.2 billion, which is 28th among NHL team values.

According to Bettman,” I think that is the range I believe the owners would want to be in if we were going to consider expanding,” whether it is$ 2 billion,$ 2.5 billion, or$ 2.7 billion, Bettman said in early 2024 regarding the next expansion fee. The NHL’s current list of quick to-dos does not include expansion.
Smith’s price may prove to be a discount, but he alleviated one of the NHL’s biggest problems with an exit plan in Arizona. The Coyotes were a drain on the NHL’s revenue-sharing system by a large margin, collecting at least$ 30 million annually through revenue sharing, after playing in a 4, 600-seat college hockey arena the past two seasons.
Utah sold 8, 500 full-season solution alternatives for the Delta Center, which has just over 11, 000 full-view tickets for sports and another 5, 000 half obstructed. Since 92 % of the season ticket customers are not Jazz fans, Smith Entertainment Group created a new fan base. An contract that gives SEG the authority to touch$ 900 million in bonds to cover the cost of the repairs to the Delta Center and funding for a new sports, entertainment, and agreement area close to the area was approved by the Salt Lake City Council this month.
The Maple Leafs ‘ Stanley Cup rainfall reached 57 times final period, the longest in club history. Yet Toronto remains the dominating company in the game, with the NHL’s highest regular-season profits year after year.
Since Rogers Communications purchased 75 % of Oak Leaf Sports &amp, Entertainment in 2012 in conjunction with other telecoms giant BCE, in 2012, it has had a first-hand experience with the power of the Leafs company. The Leafs, the NBA’s Toronto Raptors, and MLS’ Toronto FC are the family companies of LSE. Last month, Rogers reached an agreement to acquire BCE’s 37.5 % stake in MLSE for CA$ 4.7 billion ($ 3.4 billion based on current exchange rates ). The deal values MLSE at$ 9 billion and is expected to shut in mid-2025, subject to group certifications.
The Lightening sold for more than seven periods their yearly earnings. Traditional income multiples have been used by bankers and investors to benefit sports teams. NHL combinations have expanded tremendously and are 7.7 on regular, per Sportico’s estimates. They still trail the NBA ( 11 ), MLS ( 9.6 ) and the NFL ( 9.3 ), while MLB, the NWSL and the WNBA range from 6.7 to 7.3.
” There has been a powerful need for businesses, and I’m bullish on the NHL”, said longtime activities lender Sal Galatioto, who represented the Melnyk home when it sold the Ottawa Senators last year for$ 950 million.
The overall rise in sports values, which saw NFL teams increase by 15 % year over year and NBA teams increase by 33 % most recently, has benefited NHL franchises. However, the NHL’s collective bargaining agreement stands out among other things.
Without some of the flaws found in various leagues, the NHL has a hard cover at both the group and team levels. The NHL seal was put in place in 2005 and has transformed the revenue profile of owning a team, especially in conjunction with the revenue-sharing system, which transferred about$ 27 million in funds next season to help low-revenue clubs. Between 1992 and 2013, the NHL experienced four work stoppages, but union relations between the league and players ‘ unions have rarely been better in advance of the next CBA expiration in 2026. In the upcoming agreement, it is anticipated to maintain the current economic system.
The 32 NHL teams generated$ 7.5 billion in total revenue last year, including non-NHL revenue at arenas where teams own or run the venue. Hockey-related revenue ( HRR ), which is used to determine the salary cap, was$ 6.3 billion, up 8 %. HRR is projected to top$ 7 billion for the 2024-25 season.
Last year, NHL teams made record sponsorship revenues. New assets, such as digitally enhanced dasherboards ( DED ) and home/away jersey patches, have helped sponsor revenue more than double since the 2020-21 season. Attendance hit a record 22.9 million fans, with all but five teams at 94 % capacity or higher. Sponsorship and gate receipts, including premium seating, represented nearly 60 % of total revenue.
Many southern clubs located further afield of Tampa have experienced significant business growth. After winning the Cup, the Florida Panthers sold out of season tickets for the first time this year. The Vegas Golden Knights ‘ gate receipts are among the top five in the NHL. The Dallas Stars have already sold out American Airlines Center for the season, making this their second-best financial year in club history.
NHL teams only generate one-third of the same amount of money as NBA teams do through shared national income from merchandise, sponsorships, and media, but local economics are comparable for ticketing and sponsorships. The majority of NHL teams also recoup some or all of the money earned at their facilities from concerts and other occasions.
The concert business boomed coming out of COVID-19 and can add$ 25 million-plus to the bottom line of teams at certain arenas. AEG, which owns LA’s Crypto.com Arena and the Kings, had 56 concerts at the building in its most recent fiscal year. The New Jersey Devils ‘ home in Newark, Prudential Center, ranked fifth in 2023 among the highest-grossing arenas in the world, according to Billboard. It had 65 concerts and 210 events during the 2023-24 year. In addition to the Philadelphia Flyers, Wells Fargo Center hosted 54 concerts, WWE WrestleMania, the Philadelphia 76ers, Villanova basketball and dozens of other events. The Kings, Devils and Flyers control all of the economics of these buildings.
Due to the high demand for tickets and ticket prices, especially in the conference finals and Stanley Cup, teams have traditionally used the playoffs to boost their bottom-line. Before the NHL took its cut, which is based on a complicated formula and typically costs teams roughly 35 % of their gate, the Edmonton Oilers set a new record last year with 12 home playoff games totaling more than$ 100 million in gross ticket revenue. The league’s cut partially funds the revenue-sharing pool.
The Oilers were already one of the NHL’s highest-grossing teams, but the playoff run pushed their estimated revenue after revenue sharing to a league-record$ 357 million. The Rangers ‘ conference finals run also contributed to their top-$ 350 million in net revenue. The Oilers will continue to be a force in the Western Conference after losing Game 7 of the Cup Finals to the Panthers. This summer, they re-signed star Leon Draisaitl and will almost certainly extend Connor McDavid’s contract, which expires after next season.
Other than Utah, a number of other teams are thinking about reviving their arenas and/or creating mixed-use developments outside of their homes. After flirting with Virginia, the Washington Capitals reached a deal to stay in Washington, D. C., with$ 800 million in renovations for Capital One Arena. The Carolina Hurricanes made plans for a$ 1 billion mixed-use district that will encircle the arena it shares with North Carolina State University last month. The South Philadelphia Sports Complex will be transformed by the Flyers for a$ 2.5 billion budget. L. A. For NHL franchises looking to expand beyond their arenas, Live, Edmonton’s Ice District, and Water Street Tampa serve as model brands.
The NHL is plagued by the same regional sports network issues that plague MLB and NBA teams. Following a December agreement between the league and Diamond Sports Group, Bally Sports channels last year broadcast games for 11 NHL teams, and the majority of those teams received a roughly 20 % cut in their rights fees. Eight of those teams are re-applying to the newly-named FanDuel Sports Network in terms of a variety of terms, including additional pay reductions or even the return to their prior contract terms in the case of the Nashville Predators.
Every NHL team with a base in the United States is looking at options on local television. After the club and DSG parted ways this summer, many people are watching the Dallas Stars this year. Dallas signed a seven-year deal with A Parent Media Co. ( APMC) to stream all regional Stars games free of charge through a new direct-to-consumer platform, Victory+. They became the first major men’s sports franchise in the country to switch almost all local broadcasts away from the RSN model and toward a streaming service.
” They gave us a foundation of security that we work off of to really pioneer and go direct to consumer and stream our games,” said Brad Alberts, CEO of the Stars, in an interview. ” The big question, which I ca n’t answer today, is how the economics are going to perform for this over time”.
Local TV made up roughly 10 % of NHL revenue last year, and Canadian teams are largely immune from the messiness of the RSN model in the U.S. This spring, the Oilers and Calgary Flames signed new 11-year contracts with Sportsnet to carry their respective games. Clubs with bases in the United States are happy if they can negotiate new deals at the same price as their prior ones. According to several people with knowledge of the terms who were not authorized to speak publicly, the Oilers and Flames deals have an average annual value of twice the amount of the previous ones.
NHL teams and league executives are optimistic about the upcoming round of Canadian media contracts due to the necessity of airing hockey in Canada. The current 12-year, CA$ 5.2 billion ($ 3.8 billion ) deal with Rogers Communications was signed in 2013 and expires after the 2025-26 season. Rogers ‘ exclusive negotiating window opens in January, and Rogers ‘ CEO Tony Staffieri publicly indicated his desire to keep the property.
The majority of people anticipate that the package will be divided among various parties. Rogers and Amazon’s Prime Video have signed a deal to stream games on Monday nights this year and the following season. In the early part of the 2024-25 season, a younger audience was drawn to games because the initial streaming viewership was strong. In the 18-49 age group, viewership for the Monday Prime games has increased by more than 50 % from previous years.