CNBC's Official NHL Team Valuations 2024: A Deep Dive into the 32 Franchises
Wednesday, Nov 20, 2024 8:05 am ET
4min read The NHL's 32 franchises have seen significant growth in value over the past decade, with CNBC's 2024 Official NHL Team Valuations revealing a collective worth of over $30 billion. This article explores the factors driving these valuations, the differences between Canadian and American teams, and the role of arena economics, ownership structures, and broadcasting deals in determining a team's worth.
The Toronto Maple Leafs top the list at $4 billion, with the Seattle Kraken bringing up the rear at $1.6 billion. The primary factors driving team valuations are revenue growth, arena economics, and market size. Between 2014 and 2024, team valuations have increased by an average of 140%, with revenue growth being the most significant driver.
Arena economics play a crucial role in team valuations. Teams with newer, larger-capacity arenas tend to have higher valuations. For instance, the Toronto Maple Leafs' Scotiabank Arena has a capacity of 18,800, while the Seattle Kraken's Climate Pledge Arena seats 17,100. The Maple Leafs' higher valuation can partly be attributed to their arena's larger capacity and modern amenities.
Ownership structures and purchase prices also influence team valuations. The Toronto Maple Leafs, owned by a consortium including Rogers Communications, BCE, and Larry Tanenbaum, were purchased in 2012 for $1.35 billion. In contrast, the Seattle Kraken, owned by David Bonderman and Samantha Holloway, were bought in 2018 for $650 million. This demonstrates that later purchases at higher prices can lead to lower valuations relative to revenue or EBITDA.
Regional sports networks (RSNs) and broadcasting deals contribute to team valuations. CNBC's methodology includes only the rights fees and advertising revenue paid by RSNs to teams, excluding the value of the network itself. However, these revenues contribute to a team's overall earnings, boosting its valuation. Additionally, CNBC anticipates a substantial increase in the NHL's next Canadian national broadcasting deal, which could begin with the 2026-27 season, further enhancing franchise values.
In conclusion, the NHL's 32 franchises have seen significant growth in value over the past decade, driven by revenue growth, arena economics, and market size. Arena renovations, relocations, and new arenas have also played a role in the evolution of team valuations. Canadian teams tend to be valued higher than American teams due to stronger local economies, higher ticket prices, and more lucrative broadcasting deals. As the league continues to grow and adapt, investors should keep a close eye on these trends to capitalize on emerging opportunities in the NHL market.
The Toronto Maple Leafs top the list at $4 billion, with the Seattle Kraken bringing up the rear at $1.6 billion. The primary factors driving team valuations are revenue growth, arena economics, and market size. Between 2014 and 2024, team valuations have increased by an average of 140%, with revenue growth being the most significant driver.
ACHR, ACRS, AEMD, AIM, ALAB...Market Cap
Arena economics play a crucial role in team valuations. Teams with newer, larger-capacity arenas tend to have higher valuations. For instance, the Toronto Maple Leafs' Scotiabank Arena has a capacity of 18,800, while the Seattle Kraken's Climate Pledge Arena seats 17,100. The Maple Leafs' higher valuation can partly be attributed to their arena's larger capacity and modern amenities.
Ownership structures and purchase prices also influence team valuations. The Toronto Maple Leafs, owned by a consortium including Rogers Communications, BCE, and Larry Tanenbaum, were purchased in 2012 for $1.35 billion. In contrast, the Seattle Kraken, owned by David Bonderman and Samantha Holloway, were bought in 2018 for $650 million. This demonstrates that later purchases at higher prices can lead to lower valuations relative to revenue or EBITDA.
Regional sports networks (RSNs) and broadcasting deals contribute to team valuations. CNBC's methodology includes only the rights fees and advertising revenue paid by RSNs to teams, excluding the value of the network itself. However, these revenues contribute to a team's overall earnings, boosting its valuation. Additionally, CNBC anticipates a substantial increase in the NHL's next Canadian national broadcasting deal, which could begin with the 2026-27 season, further enhancing franchise values.
In conclusion, the NHL's 32 franchises have seen significant growth in value over the past decade, driven by revenue growth, arena economics, and market size. Arena renovations, relocations, and new arenas have also played a role in the evolution of team valuations. Canadian teams tend to be valued higher than American teams due to stronger local economies, higher ticket prices, and more lucrative broadcasting deals. As the league continues to grow and adapt, investors should keep a close eye on these trends to capitalize on emerging opportunities in the NHL market.
