Forbes' annual analysis of NHL franchise values serves as a great window into the business of hockey. The sharp decline seen this year offers a sobering look at how the pandemic disrupted the league's finances throughout the 2019-20 season.
According to reports by Mike Ozanian and Kurt Badenhausen for Forbes, the NHL experienced its first drop in average team valuation since 2001, with figures sliding 2% to $653 million. The revenue side was even worse, falling by 14% to a total of $4.4 billion, while operating income crashed by 68% to just $250 million. This financial slump was inevitable, as the playoffs were played in empty-seat bubbles. The authors point out that about 70% of a team's income usually relies on the live experience, including food, drinks, and in-stadium sponsorships. Even so, the New York Rangers remain the most valuable team in the league, holding steady with last year's numbers—a result of the team's massive presence in the New York market.
It’s anything but difficult to perceive any reason why with the whole post-season directed in isolated air bubbles with void stands. Per Ozanian and Badenhausen, all the aspects of normal fanfare, in-arena food and drink purchases, sponsorships, etc are what typically make up about 70% of revenue for teams and the league.
As indicated by Forbes, the New York Rangers remain the NHL’s most valuable team and they have been consistent with last year’s assessment. This isn’t surprising considering the large market and huge financial budget of the historic Big Apple club.
The rankings behind the New York Rangers, valued at $1.65 billion, were largely expected. The Toronto Maple Leafs take the second spot at $1.5 billion, followed by the Montreal Canadiens at $1.34 billion. Rounding out the top five are the Chicago Blackhawks at $1.085 billion and the Boston Bruins at $1 billion.
Looking at other teams, the Vancouver Canucks rank 10th with a valuation of $725 million. Further down the list, the Edmonton Oilers sit at 14th ($550 million), followed by the Calgary Flames in 20th ($480 million), the Ottawa Senators in 26th ($430 million), and the Winnipeg Jets in 27th ($405 million).
Ozanian and Badenhausen highlight that several teams struggled, including the Tampa Bay Lightning, who lost $11 million. Normally, winning the Stanley Cup leads to a huge financial windfall, but without fans in the stands, the Lightning's victory didn't translate into the usual profit. The New York Islanders suffered an even steeper operating loss of $38 million, though their overall franchise value remained stable at $520 million, keeping them 16th overall. In total, fifteen teams reported negative income, including the Winnipeg Jets at -$7.6 million and the Ottawa Senators at -$2.9 million.
The New York Islanders posted an operating income of -$38 million. That doesn’t mean a drop in their overall value, however they landed at 16th in that regard, holding their value at $520 million. Fifteen other teams posted negative incomes which also included the Ottawa Senators ($-2.9 million) and Winnipeg Jets ($-7.6 million).