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Bruce Dowbiggin

Celebrity Owners– Fun, Yes, But The Equity Is Even Better

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In case you hadn’t noticed. Celebrity Sports Ownership is all the rage. When the Ottawa Senators were for sale Ryan Reynolds, Snoop and The Weeknd were all mentioned among the bidders (that eventually went to Montreal businessman Michael Andlauer). LeBron James now holds a minority position with Liverpool FC.

Jay-Z owns part of the Brooklyn Nets, Usher a piece of the Cleveland Cavaliers while Fergie of Black Eyed Peas fame also partly owns the Miami Dolphins. Gloria and Emilio Estefan, Marc Anthony, and tennis superstars Serena and Venus Williams are owners of pro sports teams. Famously, Elton John owned Watford FC, although he’s now just an honorary chairman.

And, of course, Reynolds and Rob McElhenney used a documentary TV series that showed their Welsh Wrexham soccer team promoted to the FA’s League Two. What’s the attraction?

Clearly a little PR is always a good thing. But sports team ownership has also become a lucrative equity play. As BMO reports, “The average compound annual growth rate since the last purchase price…  is 15 percent, a meaningful outperformance to the TSX and S&P.  Forbes estimates the Toronto Blue Jays are currently worth US$2.1 billion or roughly C$2.85 billion.

Based on recent sports franchise transactions, expansion fees and annual estimations of franchise values by Forbes Magazine, an $8 billion enterprise value is easily defendable for the Jays’ owners MLSE (who also own the Maple Leafs, Toronto FC and Argonauts).”

It’s the same across the major pro sports leagues. The estimated average franchise value in the NFL since 2013 is $5.1B with a compound annual growth rate (CAGR) of 16 percent; in the NBA it is $2.9B with a CAGR of 18 percent. For MLB it is $2.3B with a CAGR of 12 percent; the NHL is $1.0B with a CAGR of 11 percent; while MLS is $0.6B with a CAGR 21%.

But, BMO cautions, owning a sports franchise is considered “an equity investment strategy rather than a cash flow or income play.” In other words, don’t think that ticket sales and hot dogs are going to make you rich. (Although the NHL’s salary cap, which guarantees owners’ profits is a sweet deal.) The key is sports media which is thriving despite the move to cord cutting..

Sports media rights contracts have grown in tandem with franchise valuations. Not to be ignored in the advertising growth and viewer interaction is the bear knowns as legalized sports betting. Betting companies are flooding the airwaves with commercials while bettors tune in to watch how their selections work out. The casinos and online shops have replaced lower-paying traditional advertisers who’ve dropped off.

In Canada, league or team ownership of broadcast properties is still common. For that reason the real value of those broadcast rights is often opaque. (We had some irritated pushback from Rogers and Bell for writing on this tidy arrangement in the mid 2010s, forcing some limited disclosures). Rogers Sportsnet and TSN own (via MLSE) own a stable of teams in MLB, NHL, CFL and MLS. Good luck finding out what they pay themselves for media rights.

It’s more open in the U.S. Since the New York Yankees pioneered the YES network in 2002— sparking multiple imitators in other markets—the move in the U.S. has been away from outright ownerships of regional sports networks. A number of RSNs in the U.S. are either in bankruptcy or nearing it. Digital and network sources are now absorbing these sources. ESPN, via its owner Disney, is looking to find partners for its many broadcast properties as their bottom line in general has suffered.

Still, ESPN’s legacy business generates revenue and operating income of approximately $12.5 billion and $4.0 billion in 2023. It remains to be seen what new model emerges in the U.S. to answer cord cutting and the death of conventional TV. The NFL’s experiment on Monday, having two MNF games compete on separate networks is one experiment.

In Canada’s monopolistic market, “TSN/RDS penetration rates have declined at a quicker pace than ESPN over the past 10 years. ESPN penetration has dropped from 81 percent of U.S. households in 2013 to 56 percent in 2022, while TSN/RDS penetration has decreased from 89% of Canadian households in 2013 to 49 percent in 2022.

In addition, BMO admits that cord cutting is a thing. “SportsNet subscribers have decreased -23 percent to 5.8 million over the same period. Subscriber and advertising revenues are 60 percent and 40 percent of total revenue, respectively. Since 2017, TSN revenues have increased 13 percent. TSN subscribers have decreased -29 percent to ~7.8 million over the same period.”

But! In the last five years, TSN and SN have increased advertising revenues by 13 percent and 15 percent respectively. The same figure for the top five Canadian non-sports channels (collectively) is six percent. Thank you legalized wagering in Ontario. So who wouldn’t want a piece of this action, especially in Canada?

The red flag in this surging equity market comes in the form of smaller Canadian NHL markets. The Senators sale for $950 suggests a healthy interest in owning, but the Sens sale was also tied into the new LeBreton Flats arena. Ownership or control of a Canadian arena means more than NHL games. It also includes revenue from concerts, rallies, monster-truck events etc.

Even with that can Andlauer produce a winner just two hours from the Montreal Canadiens market? Likewise, the Winnipeg Jets are desperately in need of a larger arena to replace the 15,321 Canada Life Centre. Having Canada’s richest man, David Thomson, as an owner is no guarantee of getting one. And should Thomson tire of being the saviour of a losing Jets hockey property, who in that market has C$1-2B lying around needed to fund the franchise properly?

Likewise, the Calgary Flames. Despite the political press conference this summer about as new agreement the arena that management promised by 2013 has still not seen a shovelful of dirt turned over. The latest gaffe was architect’s drawings for the rink being rejected by the NHL due to inadequate dressing-room space. Start again.

Should the rink not be available till 2025-26 will an evolving ownership group still be interested in shelling out the money to keep the Flames (and Stampeders, Roughnecks and Hitmen) operating in Calgary? And if they don’t, because losing sucks? While energy-rich Calgary has plenty of billionaires, few will want to risk the money needed to keep a competitive team in a small market.

Connor McDavid’s brilliance plasters over the same small-market crack in Edmonton. Yes, they have their new building, but can owner Darryl Katz fund the moves need to keep his stars and build a winner? Vancouver, owned by the Aqulini family, has a larger market base, but with Seattle Kraken just two hours away can they too write the cheques needed to create the first Stanley Cup winner since the Canucks entered the NHL in 1970.

If these Canadian markets do survive longterm it might have to be with foreign ownership. Certainly there is money to be made riding the equity train. But there also no guarantees that those carpetbagger owners might replicate the Montreal Expos and scoot to richer markets.

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Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster  A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, he’s a regular contributor to Sirius XM Canada Talks Ch. 167. Inexact Science: The Six Most Compelling Draft Years In NHL History, his new book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org . His 2004 book Money Players was voted sixth best on the same list, and is available via http://brucedowbigginbooks.ca/book-personalaccount.aspx

BRUCE DOWBIGGIN Award-winning Author and Broadcaster Bruce Dowbiggin's career is unmatched in Canada for its diversity and breadth of experience . He is currently the editor and publisher of Not The Public Broadcaster website and is also a contributor to SiriusXM Canada Talks. His new book Cap In Hand was released in the fall of 2018. Bruce's career has included successful stints in television, radio and print. A two-time winner of the Gemini Award as Canada's top television sports broadcaster for his work with CBC-TV, Mr. Dowbiggin is also the best-selling author of "Money Players" (finalist for the 2004 National Business Book Award) and two new books-- Ice Storm: The Rise and Fall of the Greatest Vancouver Canucks Team Ever for Greystone Press and Grant Fuhr: Portrait of a Champion for Random House. His ground-breaking investigations into the life and times of Alan Eagleson led to his selection as the winner of the Gemini for Canada's top sportscaster in 1993 and again in 1996. This work earned him the reputation as one of Canada's top investigative journalists in any field. He was a featured columnist for the Calgary Herald (1998-2009) and the Globe & Mail (2009-2013) where his incisive style and wit on sports media and business won him many readers.

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2025 Federal Election

Will Four More Years Of Liberals Prove The West’s Tipping Point?

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The 1997 political comedy Wag The Dog featured a ruling president far behind in the polls engaging Hollywood to rescue his failing ratings. By inventing a fake war against Albania and a left-behind “hero”— nicknamed Shoe— the Hollywood producer creates a narrative that sweeps the nation.

The meme of hanging old shoes from the branches of trees and power lines catches on and re-elects the president. In a plot kicker, the vain producer is killed by the president’s handlers when he refuses to stay quiet about his handiwork. The movie’s cynicism over political spin made it a big hit in the Bill Clinton/ Monica Lewinsky days.

In the recent 2024 election the Democrats thought they’d resurrect the WTD formula to spin off senile Joe Biden at the last minute in favour of Kamala Harris. Americans saw through the obvious charade and installed Donald Trump instead.

You’d think that would be enough to dissuade Canadians who pride themselves on their hip, postmodern humour. But you’d be wrong, they don’t get the joke. Wag The Carney is the current political theatre as Liberals bury the reviled Justin Trudeau and pivot to Mark Carney. If you believe the polling it might just be working on a public besotted by ex-pat Mike Myers and “Canada’s Not For Sale”.

As opposed to Wag The Dog, few are laughing about this performative theatre, however. There are still two debates (English/ French)  and over three more weeks of campaign where anything— hello Paul Chiang—can happen. But with Laurentian media bribed by the Libs— Carney is threatening those who stray— people are already projecting what another four years of Liberals in office will mean.

As the most prominent outlier to Team Canada’s “we will fight them on the beaches…” Alberta’s premier Danielle Smith is already steering a course for her province that doesn’t include going to war with America on energy. She asked Trump to delay his tariffs until Canadians had a chance to speak on the subject in an election April 28. Naturally the howler monkeys of the Left accused her of treason. She got her wish Wednesday when Canada was spared any new tariffs for the time being.

Clearly, she (and Saskatchewan premier Scott Moe) have no illusions about Carney not using their energy industry as a whipping post for his EU climate schemes. They’ve seen the cynical flip in polls as former Trudeau loyalists hurry back to the same Liberal party they abandoned in 2024. They know Carney can manipulate the Boomer demographic just as he did when he called for draconian financial methods against the peaceful Truckers Convoy in 2022.

Former Reform leader Preston Manning is unequivocal: “’Large numbers of Westerners simply will not stand for another four years of Liberal government, no matter who leads it.’“ So how does the West respond within Confederation to protect itself from a predatory Ottawa elite?

Clearly, the emissions cap— part of Carney’s radical environmental plans— will keep Alberta’s treasure in the ground. With Carney repeating no cancellation of Bill C-69 that precludes building pipelines in the future, the momentum for a referendum in Alberta will only grow. The NDP will howl, but there will be enough push among from the rest of Albertans for a new approach within Canada.

In this vein Smith even wants to approach Quebec. While it seems like odd bedfellows the two provinces most at odds with the status quo have much in common .  “This is an area where our two provinces may be able to coordinate an approach,” Smith wrote this week. That could include referendums by the middle of 2026.

Perhaps the best recipe for keeping the increasingly fractious union together is a devolution of power, not unlike that governing the United Kingdom. While Westminster remains the central power since 1997, there are now separate parliaments in Scotland, Wales and Northern Ireland that put power closer to the citizen, so that local factors are better recognized in decision making.

With so little uniting the regions of the country any longer, devolution might provide a solution. What form could decentralization take within Canada? A Western Canada Parliament could blunt predatory federal energy policies while countering the imbalances of Canada’s equalization process. Similar parliaments representing Quebec, the Atlantic provinces, Ontario and B.C. would protect their own special interests within Canada. Ottawa could handle Canada’s international obligations to defence, trade and international cooperation.

While the idea is fraught with pitfalls it nonetheless remains preferable to a breakup of the nation, which four more years of Liberals rule under Mark Carney and the same Trudeau characters will likely precipitate. Smith’s outreach case would be the beginning of such a process.

None of this would be necessary were the populations of Eastern Canada and B.C.’s lower mainland remotely serious after snoozing through the Trudeau decade. The OECD shows Canada’s 1.4% GDP barely ahead of Luxembourg and behind the rest of the industrialized world from 2015-2025. As we’ve said before the Boomers sitting on their $1 million-plus homes are re-staging Woodstock on the Canada Pension and OAS. As with Wag The Dog, they’re not getting the joke.

When the Boomers award themselves another four years of taxapalooza and Mike Myers and the other “Canada Not For For Sale” celebs head south to their tax-avoidance schemes how will the Boomers say they’ve left Canada  better off for anyone under 60? We’ll hang up and listen to your answer on the TV.

Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster  A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, his new book Deal With It: The Trades That Stunned The NHL And Changed hockey is now available on Amazon. Inexact Science: The Six Most Compelling Draft Years In NHL History, his previous book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org . His 2004 book Money Players was voted sixth best on the same list, and is available via brucedowbigginbooks.ca.

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Bruce Dowbiggin

Are the Jays Signing Or Declining? Only Vladdy & Bo Know For Sure

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We were watching the Los Angeles Dodgers home opener on Thursday. The defending World Series champs came from behind to beat Detroit 5-4. The big hit was a three-run homer from a player named Teoscar Hernandez off AL Cy Young winner Tarik Skubal

If that name sounds familiar, Teoscar was a Toronto Blue Jay from 2018-2022. He pounded 121 homers in the span as part of the Jays’ order. But when Toronto decided it needed bullpen help he was traded to Seattle in 2022 for pitchers Erik Swanson and Adam Macko. While Swanson has battled injuries and Macko is no-go, Hernandez keeps pounding the ball.

In his one year in Seattle he had strikeout problems but did hit 26 homers with 93 RBIs. In the winter of 2023-24 he signed as a free agent with the aforementioned Dodgers. Batting behind Shohei Ohtani he launched 33 homers and 99 RBIs. He won the All Star Home Run Derby. His key hit in Game 5 of the World Series propelled L.A. to the title. The stacked Dodgers liked him enough to give him a three-year, $66 million contract.

Why are we telling you this? Because the Blue Jays also started their 2025 season at home, matched against the Baltimore Orioles. And while there are reasons to believe the Jays will not replicate their 74-win disaster of 2024, there remain the old bugaboos of injuries and pitching. In the four games against the division rivals they need to beat, Jays’ pitching gave up 24 runs while scoring 18—nine of them in one game.

The splashy acquisition of 40 year old HOF pitcher Max Scherzer has already gone sideways as a bad thumb has put him on the IL. The new stopper, Jeff Hoffman, was rejected on medical grounds by two other teams before Toronto’s money made him healthy. The rest of the bullpen— a disaster in 2024— got off to a rocky start with Orioles hitters playing BP against them. They’ve already DFA’d one pitcher and called up two more from the minors. The re-made pen performed well in Game 4, but how it holds up in their next 158 games is a mystery.

On offence, while their rivals in Boston and New York added sexy pieces to their rosters the Jays were only able to acquire veteran switch-hitting Baltimore slugger Anthony Santander. More typical of their other signees is ex-Cleveland 2B infielder Andres Giminez who in 2023 had the lowest average exit velocity of all AL batters (84.8 mph), and led the AL in percentage of balls that were softly hit (21.7%). He does play a slick second base.

The winter story line for the Jays offence was what to do about Vladimir Guerrero Jr. and Bo Bichette, the erstwhile star-dust twins who were— along with Cavan Biggio— supposed to guarantee titles when they emerged in 2019. Biggio is gone, so the other two carry the credibility of the management team of Mark Shapiro and Ross Atkins. From the outside the Jays seem paralyzed to act.

While the Jays dithered, the price for players like Guerrero and Bichette soared. Using Juan Soto’s Mets $765 M deal as a yardstick Guerrero turned down a Jays offer of just under $600 M, saying he was done talking during the season. If Shapiro/ Atkins had anticipated the market Guerrero would have cost a lot less in 2023-24. If there is no progress by the trading deadline the Jays will be forced to get what they can in a trade.

Shortstop Bichette— a gifted player who battled injuries in 2024—is likewise up for a new deal. He has started strong in 2025 and would command a handsome return in a trade. He says the Jays are waiting to see what happens with Guerrero first.  Having sold the pair for years to their loyal fans, having to trade them will be a massive PR blow. And while Jays’ national audience can be an advantage, having a whole country pissed with you is devastating.

The rest of the secret sauce for a Toronto comeback revolves around one of their hitting prospects taking a step forward. Any/ all of Will Wagner, Alan Roden, Addison Barger or Leo Jimenez can have a job if they show their bats are for real. Otherwise Shapiro and Atkins will hope that Dalton Varsho, George Springer and Alejandro Kirk can find a little magic in their aging bats.

A failure to retain talent may prompt fans to recall that Rogers decided that Shapiro and Atkins, who dumped Teoscar, were worthy replacements for the previous GM who’d walked away. The man Schneider and Atkins were hired to improve upon— Canadian Alex Anthopoulos— has made the Atlanta Braves a dominant team. Since AA moved to Atlanta they’ve won 90, 97, 38 (Covid year), 88, 101, 104, 109, 89 games. They’ve won a World Series and two other playoff series. They won six straight NL East titles before injuries sank them last year.

The Braves have developed young everyday superstars like Ronald Acuńa Jr. who don’t get picked off second base. They have built a pitching staff largely from within, not splashy FA signings. They have swagger without cockiness. They are set for years to come.

The Blue Jays? Since AA left they’ve won 73, 67, 32 (Covid), 91, 92, 89, 74 games. They’ve won zero postseason games while missing the playoffs in four seasons. The players they traded are starring for other teams in the postseason. They are again employing an inexperienced company guy as manager.

While it’s true that the sun can’t shine on the same team every day, Jays fans believe it would be nice if the great orb would find their club as it did back in the 1992/93 World Series days. Instead of the reflected glory of past stars winning for other teams. Patience is thin. And time is ticking.

Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster  A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, his new book Deal With It: The Trades That Stunned The NHL And Changed hockey is now available on Amazon. Inexact Science: The Six Most Compelling Draft Years In NHL History, his previous book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org . His 2004 book Money Players was voted sixth best on the same list, and is available via brucedowbigginbooks.ca.

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