Boudrias Posted October 30, 2020 Share Posted October 30, 2020 13 hours ago, qwijibo said: Vancouver paid $6m in 1970 for their team. Inflation adjusted that’s = to roughly $40m. Vegas and Seattle paid $500m each. The league had to give them decent expansion rules. Comparing the value of a franchise in 1970 at $6 mil versus a franchise in 2019 at $500 mil has many variants. Using a 2% inflation factor is one but also consider the revenue growth which is far higher than 2%. Not only are teams generating far more income but there is a CAP with escrow provisions. IMHO there is far more downside protection than in 1970. In 2018/19 the NHL had sales of $5.09 billion of which the players share +/- 50%. If you amortized a franchise fee of $500 mil over 20 years and added interest charges my ballpark tells me a cost of $37 mil for a fully financed expansion franchise. I would expect the financing could be spread even longer. One can play with these numbers in many ways. Going back to 1970 there wasn't even revenue sharing. Most fans don't like Bettmen but I give him a lot of credit for saving Canadian NHL franchises as most were ready to fold back in the late '70's and early '80's. One cannot really argue that he has not stabilized the NHL Another consideration which has fallen aside during Covid was the renewed broadcast contract that Bettman was negotiating with American networks last fall. The final numbers were never public but speculation was +$200 mil per year. Even higher if the broadcast rights were segmented by regions. At $200 mil that was + $6 mil per team. You can understand to some extent why so many teams were pushing their CAP's up as they anticipated a significant increase. Link to comment Share on other sites More sharing options...
J.I.A.H.N Posted October 30, 2020 Author Share Posted October 30, 2020 3 hours ago, timberz21 said: Owner were not in favors of allowing free buyouts for their teams, do you really think they want their team to exceed the cap? You seem to be thinking GMs are calling the shots...but governors/owners/Bettman and $$$ are. Just like a coach has to deal with the players/trades/injuries despite of all his plans....GMs needs to deal with the Flat Cap/Luongo recapture/Expansion draft when it happens. It's called being a manager. No need to be condescending I do get your point and I do realize the "Owners" call the shots on this I am merely bringing it up for discussion Link to comment Share on other sites More sharing options...
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