News Article Flyers are 8th most valuable hockey franchise

[Digityman]

THE FLYERS are ranked the eighth-most valuable NHL franchise by Forbes magazine with a worth of $290 million.

That represents a decline from last year, when the Flyers were ranked sixth, at $301 million.

Forbes ranked the Toronto Maple Leafs as the most valuable NHL franchise with a worth of $521 million.

Forbes reported the average team value hit a record $240 million, while operating income fell 21 percent due to soaring player salaries.

Hockey's wealth gap is widening: 18 of the 30 teams are losing money while top markets like Toronto, New York City and Montreal see their values rising, thanks to ticket revenue and cable television deals.

The Rangers are second at $507 million and the Montreal Canadiens third at $445 million. Detroit is fourth at $336 million and Stanley Cup-champion Boston is fifth at $325 million.

Chicago, Vancouver, the Flyers, Pittsburgh and the Los Angeles Kings round out the top 10.

http://www.philly.com/philly/sports/flyers/20111201_Flyers_are_8th_in_value.html

[Phlyer1]

How many of the top six are of the original six? Also how much of the overhead are player salaries for the Flyer. Is the reason they have dropped in value?

[idahophilly]

There is worth on paper (290 mil) versus the intangible worth to the league. I think the Flyers would rank in the top 4 for that. I base it on nothing of course! What teams are most valuable to the league?

Toronto, Montreal, Dertroit, Philly, Rags, Boston...?

[doom88]

The Flyers aren't a cheap ticket in town and the economy is forcing people to rethink discretionary spending. While I do not know for sure, I don't think the Philadelphia area is quite as rich as say Boston or NYC.

[AlaskaFlyerFan]

How many of the top six are of the original six?

Unless I'm reading it wrong, all of them.

Toronto is first, Rangers are second, Montreal Canadiens third, Detroit is fourth, Boston is fifth, Chicago is sixth.

[Vanflyer]

That represents a decline from last year, when the Flyers were ranked sixth, at $301 million.

This is actually very easily explained. The two key factors are income based. The first one is "Revenue" and the second one is "Gate Receipts".

1) Revenue (which is the net of stadium revenues used for debt payments) was down 11 million.

2) Gate receipts were down 8 million.

So 19 million in less income. It wasn't because people were not spending, it was merely because the Flyers played 60% less home playoff games as the prior year when they went to the SCF.

Look at the teams that jumped over them this year:

1) Chicago- Their revenue (net stadium) only decreased 2M and gate receipts same decrease as the Flyers. The difference in revenue caused the valuation to be greater than the Flyers this year.

2) Vancouver- They were in the SCF so both revenue and gate receipts were significantly higher, thus why they moved ahead of us.

So, in the end, the Flyers and Philly market are not on the decline, it is just a matter of simple results on how well you do in the playoffs. This should be a clear indicator to everyone why the playoffs are such an economically important aspect to the sustainability of a hockey franchise.

*Note- That both operating expenses and Player expenses were not dramatically changed from the prior year, as one would expect because they are pretty much known quantities.

Edited December 2, 2011 by Vanflyer

[HockeyFan]

So, in the end, the Flyers and Philly market are not on the decline, it is just a matter of simple results on how well you do in the playoffs.

This is part of the problem for some of the neo-expansion teams that don't make the playoffs; not only is area interest down, but the chance to pad accounts is also lacking. Winning begats winning... Cross-sports, look at the Phillies as a prime example.

[Phlyer1]

Unless I'm reading it wrong, all of them.

Toronto is first, Rangers are second, Montreal Canadiens third, Detroit is fourth, Boston is fifth, Chicago is sixth.

Thanks I forgot about Chicago. Large African American and Hispanic communities in Philly. Most are not interested in Hockey. Re. I was a Lt. at Engine 28 in Philly. The night the Flyers won their first cup we had to go to another fire house to cover for them as they were out all night. The rest of the City went crazy and you could have heard a pin drop in the Ghetto. I am not being racist it was a fact of life at that time..