Forbes Magazine has released its annual valuation report on NHL teams. Our Ducks are definitely below average at 21. Our Ducks guess-timated value is;
Team value: $192 million
Owners: Henry and Susan Samueli
Revenue 2011-12: $91 million
Operating income 2011-12: -$10.8 million
The Ducks suffered the fourth-biggest operating loss in the NHL during the 2011-12 season as a result of not making the playoffs and not having an NBA team help them fill the Honda Center.
Like many NHL teams our Ducks need to make the playoffs in order to book profit from operations. This might be why Senators owner Eugene Melnyk keeps preaching, “Owning an NHL team doesn’t make sense unless you also own the rink.”
Obviously in the opinion of Forbes and as has been occasionally spoken to by our Ducks.org the Honda Center also operates at a loss. There just isn’t enough concerts, religious revival and college hoops to put the barn in the black.
MORE MONEY, MORE PROBLEMS
Any other year, Bettman would be thrilled with the numbers Forbes magazine reported when it comes to franchise values in the NHL. But in a year when the players are locked out and the league is crying poor, they’re something of a disaster.
While there are some in the hockey/business community who think Forbes’ franchise values are inflated, the American business magazine’s research reinforces the point there is a wide gulf between the NHL haves and have-nots.
According to the report, the 17 teams that made money last season pulled in profits of $380.5 million, while the 13 teams that lost money were in arrears by $130.2 million. That leaves more than $250 million in profits that could be distributed more evenly to the teams losing huge amounts of money, namely the Coyotes, the Columbus Blue Jackets and the New York Islanders.
If the NHL increases its revenue sharing contributions by $50 million, to $200 million from the current $150 million, that won’t even cover half the losses of its have-not teams.
The good news for our Ducks though is Forbes surprisingly 5th place rating in the most bang for the buck category:
Player-cost-to-win Ratio: 115
The Ducks may seem like a surprising addition to the list, but two deep playoff runs immediately following the last lockout – the latter of which ended with a Stanley Cup victory – coupled with consistently average player costs led Anaheim to outperform the average NHL team by 15% in terms of cost efficiency.
Obviously Bob Murray is living in the house Brian Burke and Brian Murray built. He certainly deserves credit for holding costs down. On the other hand costs won’t matter if our Ducks continue to miss the playoffs.
Since we have some MBA’s and managers among our readership, can our Ducks increase revenue from operations also called HRR (Hockey Related Revenue in the CBA chat) by selling more tickets instead of raising prices for a consistently devalued product?
The difference between booking profit or loss from operations is making the playoffs.
The answer to making the playoffs might be Coach Boudreau having the depth to build a productive line anchored by Bobby Ryan. We know Teemu & Saku can anchor a strong third line in ES situations. We know the Twins will continue to draw the best D match ups the opposition can put out there. The PP will be fine, especially with Gabby giving the 2nd unit enough TOI to be productive. Daniel Winnick takes the PK up a notch. The blue line should be better with the addition of Souray and Allen and the maturation of Fowler and Sbisa. If Lydman enjoys a bounce back season in his contract year, our D could be very good.
Gabby does have some options when it comes to building a productive line around Ryan. Bonino and Holland will compete for center while Palmieri and Cogliano are the leading wingmen candiates. This assumes DSP and Winnick line up alongside the Twins and Finns, respectively.
Jeez that felt good. Seems like eons since I blogged a 600+ word post. CHOMP, CHOMP.