TORONTO—A second NHL team in Toronto could mean big bucks. A new study by SportsCorp Ltd., a Chicago-based sports consulting firm, indicates another NHL franchise in the city would have a market value between $400 to $600 million.
The team would immediately become the third most profitable in the league behind the Toronto Maple Leafs and the New York Rangers, and on par with the Detroit Red Wings and the Montreal Canadiens.
Although the NHL continues to say it’s not exploring the idea, President of SportsCorp Ltd. Mark Ganis said the size and strength of the Greater Toronto Area (GTA) market would drive the new franchise’s value.
“There is no better [hockey] market anywhere than the one for a second team in Toronto,” Ganis told the Globe and Mail.
The GTA is home to more than 300,000 players and over 350 recreational hockey leagues. The region is experiencing drastic population growth—with a projected figure of more than 10 million people by 2012.
According to a 2007 Forbes magazine estimate, the Toronto franchise is worth in excess of $330 million. Hockey fans believe that a second Toronto team would be equally profitable.
“I can definitely see a lot of green bills, having a second team would be a wild idea,” said Novka Cosovic, 22, whose cousin Milan Lucic plays for the Boston Bruins.
Because of the huge hockey fan base in Toronto, getting tickets has proven difficult—even for family members of hockey players.
“When my cousin comes to Toronto to play, he’s only allowed to buy a max of five, maybe six tickets. In Boston, he’s allowed to hold 20 tickets,” Cosovic added.
Leafs tickets are virtually sold out and the waitlist for season tickets is long. But some people are worried an additional team won’t benefit the fans.
“Setting up another Toronto franchise will just be another lucrative venture,” said University of Toronto student Danielle Sandhu, who grew up a Leafs fan. “The sad thing is that the dedicated fans who wish to attend cannot because of the [high] prices.”
Tickets are costly for Maple Leafs game, with fans paying $150 easily for back-seat tickets.
Under the existing NHL radius clause, Toronto is protected from competitors that hope to set up shop in the area. However, the legality of the non-compete zone provision is debatable, as NHL governors could agree to change the rule or accept compensation. In this case, Maple Leaf Sports and Entertainment (MLSE), owner of the Air Canada Centre (and home to the Toronto Maple Leafs), would be entitled to a one-time territorial payment ranging from $90 million to $250 million.
Another option is a relocation of a present-NHL team, which would have to garner the support of NHL governors. The approval of a franchise move and/or sale to a new owner has proven tricky, given the current bankruptcy proceedings involving Nashville Predators minority owner William Del Biaggio.
So far, the setting up of multi-franchise teams in cities like New York has proven to be a success. An additional team in Toronto, located in a country where hockey is the number one sport, would be, according to sports finance experts like Ganis, financially agreeable.
It doesn’t seem to matter that the Maple Leafs have not won a Stanley Cup in 41 years.
The team would immediately become the third most profitable in the league behind the Toronto Maple Leafs and the New York Rangers, and on par with the Detroit Red Wings and the Montreal Canadiens.
Although the NHL continues to say it’s not exploring the idea, President of SportsCorp Ltd. Mark Ganis said the size and strength of the Greater Toronto Area (GTA) market would drive the new franchise’s value.
“There is no better [hockey] market anywhere than the one for a second team in Toronto,” Ganis told the Globe and Mail.
The GTA is home to more than 300,000 players and over 350 recreational hockey leagues. The region is experiencing drastic population growth—with a projected figure of more than 10 million people by 2012.
According to a 2007 Forbes magazine estimate, the Toronto franchise is worth in excess of $330 million. Hockey fans believe that a second Toronto team would be equally profitable.
“I can definitely see a lot of green bills, having a second team would be a wild idea,” said Novka Cosovic, 22, whose cousin Milan Lucic plays for the Boston Bruins.
Because of the huge hockey fan base in Toronto, getting tickets has proven difficult—even for family members of hockey players.
“When my cousin comes to Toronto to play, he’s only allowed to buy a max of five, maybe six tickets. In Boston, he’s allowed to hold 20 tickets,” Cosovic added.
Leafs tickets are virtually sold out and the waitlist for season tickets is long. But some people are worried an additional team won’t benefit the fans.
“Setting up another Toronto franchise will just be another lucrative venture,” said University of Toronto student Danielle Sandhu, who grew up a Leafs fan. “The sad thing is that the dedicated fans who wish to attend cannot because of the [high] prices.”
Tickets are costly for Maple Leafs game, with fans paying $150 easily for back-seat tickets.
Under the existing NHL radius clause, Toronto is protected from competitors that hope to set up shop in the area. However, the legality of the non-compete zone provision is debatable, as NHL governors could agree to change the rule or accept compensation. In this case, Maple Leaf Sports and Entertainment (MLSE), owner of the Air Canada Centre (and home to the Toronto Maple Leafs), would be entitled to a one-time territorial payment ranging from $90 million to $250 million.
Another option is a relocation of a present-NHL team, which would have to garner the support of NHL governors. The approval of a franchise move and/or sale to a new owner has proven tricky, given the current bankruptcy proceedings involving Nashville Predators minority owner William Del Biaggio.
So far, the setting up of multi-franchise teams in cities like New York has proven to be a success. An additional team in Toronto, located in a country where hockey is the number one sport, would be, according to sports finance experts like Ganis, financially agreeable.
It doesn’t seem to matter that the Maple Leafs have not won a Stanley Cup in 41 years.
