Forbes: Arizona Coyotes are third-least valuable franchise in NHL
Nov 30, 2016, 5:00 PM
(Associated Press)
According to Forbes, the Arizona Coyotes are the third-least valuable franchise in the National Hockey League.
Forbes released a list called “The Business of Hockey,” which ranks the value of each of the league’s 30 franchises, and the Coyotes come in at No. 28.
The Coyotes have been in turmoil the past several years with the change of ownership and the threat of the Coyotes hitting the road. A new plan, however, may kick-start the Coyotes and get excitement back into the team.
The Arizona Coyotes unveiled a plan in November to build a new $400 million hockey arena in Tempe. The team would cover half the cost with taxpayers covering the balance. The deal still has many hurdles to clear including approval from lawmakers and concessions from Arizona State University as part of a land lease.
The Coyotes are worth $240 million, and they have the second most debt in the league compared to their worth at 54 percent ($136.8 million). The only other team with more is the New Jersey Devils at a staggering 81 percent.
Arizona also has the third-lowest operating income at $-8 million, which is the earnings before interest, taxes, depreciation and amortization. On top of that, they are bringing in the fourth-least revenue in the league, with an annual income of $101 million, and according to Forbes, the franchise is in serious disarray.
The Coyotes have been in financial peril almost ever since the club moved from Winnipeg to downtown Phoenix and later Glendale.The club has been heavily subsidized recently by the city of Glendale. The latest deal was amended last year to cut the city’s management fee to $6.5 million from $15 million, but shifted all hockey-related revenue to the team. The latest owner, Andrew Barroway, paid a rich $305 million for the team in 2014. He says the team might break even with a new arena in Tempe.
The two franchises ranked behind the Coyotes in value are the Florida Panthers ($235 million) and the Carolina Hurricanes ($230 million).
The New York Rangers had the highest valuation by Forbes, at a staggering $1.25 billion. They were followed by the Montreal Canadiens ($1.12 billion), the Toronto Maple Leafs ($1.1 billion) and the Chicago Blackhawks ($925 million).