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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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Bruce Dowbiggin

Canada’s Liberals: Looking For A Place To Picnic In A Minefield

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Breaking: “Mexico’s president Claudia Sheinbaum believes she will have a deal to avoid U.S. tariffs by next Tuesday. Meanwhile Canada’s PM Skippy McDoodles— he of 22 percent approval— is flying around Europe delivering billions to the Ukraine bribery-recycling  mechanism and chatting with 18% approval Macron in Paris. God help Canada.”

For a party that consumes language the way Prime Minister Trudeau’s plane consumes jet fuel the ruling Liberals seem willfully— blissfully— ignorant of the meaning of the word Urgent. As in, get something done yesterday.

While Mexico seemingly recognizes the value of time in coming up with a deal by March 4 to avoid tariffs and Trump’s displeasure, viewers of the Xanax Liberal debates on Monday and Tuesday were treated to a government languorously floating down a river of polite debate, staying inside the guardrails of good taste.

The prevailing take was “we f**ed up the past decade, okay? But you know us and can depend on us to keep pandering to your romantic notions that don’t include Chinese money laundering, drug kingpins and cyber crime.” Apparently that should be enough for Canadian Boomers to flock to them like the swallows at Capistrano.

As most know by now the elders of the party disqualified two leadership candidates, Ruby Dhalla and Chandra Araya, from the debates because they couldn’t be relied upon to spare the cadaverous banker Mark Carney who famously has three different passports, a passel of corporate board seats and a halting grasp of French.

But who needs debate? The Liberals have settled on their enemy and it’s not Pierre Poilievre. It’s Donald Trump. They’re convinced themselves that targeting Beelzebub Trump, not addressing the tariff crisis, is all they need to expunge the Trudeau Follies and win a March election. Instead of engaging in serious talks (see: Danielle Smith) they’ll talk amongst themselves. The recent hockey win over over Tyrannus U.S. has apparently inspired Canadians to reward Liberals with another five years of sitting in first class while paying economy.

Emboldened 1A) candidate Chrystia Freeland, the former Finance minister and Truck Convoy caudillo, blasted Trump on Tuesday, urging Canada to join with… Denmark. “The U.S. is turning predator, and so what Canada needs to do is work closely with our democratic allies, our military allies. I would start with our Nordic partners, specifically Denmark who is also being threatened.”

Maybe she can do an anti-Trump rally at the Tivoli Gardens in Copenhagen? The problem being— for those who applauded Nazis in the Visitors Gallery— this fatuous nonsense all makes perfect sense. The capacity for denial in the Libs aging Boomer base seems inexhaustible. Currently they’re memory-holing the Rez School buried babies claims that the PM recited before the U.N.

While the social-justice Left was routed in America in 2024, Team Carney is acting as if Canada’s culture cancellation scheme still works. Meanwhile the Libs seem unaware or uncaring about South of 70— the collapse of the CDN dollar— and the hollowing-out of Canada’s GDP (the total market value of all the final goods and services produced and rendered in a specific time period).

Economist  @TrevorTombe writes that it’s Code red time. “Real GDP per capita in the U.S. was 43% higher than in Canada in 2023. In 2024, I estimate this gap will widen to nearly 50% … This stunning divergence is unprecedented in modern history.’ But no sweat, Carney will print all the money Canada needs to keep diversity programs functioning.

It all mirrors the last desperate, flailing attempts by the U.S. Democrats to save their grasp on ultimate power in the 2024 election. Having used the Media Party that hid Biden’s bribery schemes to disguise the senility of Joe Biden for four years they discovered they would be wiped out by Trump in the voting. Presto change-o, they tossed the primary results, threw Biden into the dumpster, got friendly pollsters to make its look like Kamala Harris was ahead.

In the American model the DEMs still got smoked—every state voted more for Trump than 2020. Trump easily won the Electoral College. But Canada’s Libs seem assured that they can make an end run on the CPC’s big lead. Already the Media Party pollsters are showing a Lazarus-like ascent from Trudeau’s 22-percent approval to a lead in some polls and a closer call in others.

There are no Rasmussen polls as there were in the U.S., which consistently showed Trump on the road to his win. And Canada has yet to digest the full Carney record. Already his controversial record on climate and printing money has started to trip him up, as in recent revelations that he lied about his role in sending Brookfield’s head office from Canada to the U.S.

If all else fails Canada can still repatriate Wayne Gretzky. Donald Trump has made him a “free agent” again. “He’s the Greatest Canadian of them all, and I am therefore making him a ‘free agent,’ because I don’t want anyone in Canada to say anything bad about him… He supports Canada the way it is, as he should, even though it’s not nearly as good as it could be as part of the Greatest and Most Powerful Country in the World, the Good Ole’ U.S.A.!”

Besides, there are other Canadian fish for Trump to fry: “@Tablesalt13 If Donald Trump really wanted to hurt Canada he could offer (vetted) citizenship to any Canadian with an advanced degree or a sought-after skill. 40-50% of skilled Conservatives would leave… and only the socialists would remain….. This would be extinction level.” Just don’t call it urgent.

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. You can see all his books at brucedowbigginbooks.ca.

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Bruce Dowbiggin

Wayne’s World Has Moved South. Canadians Are Appalled. Again.

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Welcome to Canada’s Bedlam 2025. A petition is circulating in Edmonton demanding that Wayne Gretzky’s name be stripped from the eponymous boulevard honouring his status as an Edmonton/ Canadian hero and hockey icon. His crime? Supporting Donald Trump, who’s demanding Canada pay for its own defence, among other outstanding bills.

Meanwhile the kaffiyeh-wearing NDP members who support the scum who massacred mothers and babies in an unprovoked attack on Oct. 7, 2023, are still referred to as honourable members. Go figure. (Lest we forget the same Canadian Mensheviks out for Gretzky also want to strip Elon Musk’s Canadian citizenship for similarly hanging out with Trump and firing useless bureaucrats.)

There was a time when Gretzky was the holiest of holies. So above criticism that, when he got himself snared in a gambling scandal, the Canadian media and fans bought a story about his wife being the degenerated gambler. That’s an untouchable. In a nation where no one is disciplined for foisting untested vaccines on an unsuspecting public he was a made man.

Or so we thought, till a picture appeared of him and his family celebrating Donald Trump’s re-election in November.

Canada’s reflexive Left (see above) recoiled in disgust that No. 99 would sully his name and record by supporting Trump at the moment he was about to serve Canada with the bill for riding in first class while paying economy. When he did nothing to repent to the kaffiyeh brigade— as is his obligation apparently— they primed their attacks on the No. 1A player to ever don skates in Canada.

The final straw came when Canada and the U.S. engaged in their epic, brawling two-game set for supremacy of… a title the NHL made up a month before. No matter. An unchastened Gretzky was introduced as the honorary captain for Team Canada for the final game. It was the heretical excommunication moment for those orchestrating a coup, replacing PM Justin Trudeau for dour banker Mark Carney.

Forget Winnipeg chantoozie Chantal Krevaziuk massacring O Canada before millions of TV viewers. Gretzky’s failure to bend a knee before the Charlie Angus demographic was the real betrayal. Even though he’s lived as an American citizen since the epic trade of 1988 (all his kids are American) he’s obliged to honour the diktats of the Canadian Liberal cult.

As we wrote last November Gretzky has company in Canada’s penalty box with his only rival for greatness, Bobby Orr who has become a non-person in Canada for getting too close to Trump. “In Orr’s case it was his published endorsement of Trump’s losing 2020 campaign that led to the shade being drawn over the greatest defenceman (IMO player) ever. “He’s the kind of teammate I want”. 

“Much like the Gretzky tsunami of condemnation, Orr took it in the cup… and we don’t mean Stanley… Here was Vancouver columnist Daniel Wagner: “In other words, Orr faces no harm from a Trump administration and is likely insulated from the harm that others have experienced. That doesn’t excuse his endorsement, but goes a long way towards explaining it.”  In the Hockey News Ken Campbell tied Orr to the Jan. 6 riots.  “Bobby Orr Was Part of the Problem. Now He Can Be Part of the Solution”.  

In our column of Nov. 8, 2020, we pointed the wee hypocrisy of the liberal-left  press box. “Just weeks after giving LeBron James’ political activism a tongue bath, the Globe & Mail sent in the goons for Orr. “Neither Bobby Orr nor any other athletes should be leading the political conversation” thundered Cathal Kelly. 

Sure. Leave it to us.  Other Canadian sports media called Trump a “monster”, a “racist” and “a totalitarian”. You could heat most of the GTA with the steam emitted by their indignation at Orr having the temerity to speak out. Others swore to sell off their precious Orr memorabilia as if Orr had been accused of throwing a Stanley Cup Final.

A bitter Orr has taken a low profile since as even some in his hometown of Parry Sound wants nothing to do with him. “Poor Parry Sound,” tweeted Mary Lou George on Oct. 31, 2020. “What a disgrace #BobbyOrr has turned out to be. Guess he believes bragging about assaulting women really is just locker room talk since he wants Trump on his team. Sad.”

Longtime fans in Parry Sound dumped on him. “I just assumed that he was a good guy. Honestly it was heartbreaking for me to learn this about him. It just shattered my impression – I guess it was an illusion – it just shattered it… It kind of now, makes me rethink a lot of my hockey heroes … it’s just disappointing.”

The message is that in progressive Canada, suspended in its 1970s  it doesn’t pay for even the greatest hockey heroes to diverge from their Trudeaupian orthodoxy. As Canadiens star goalie Carey Price learned when he dared to disagree with Trudeau’s plans to seize guns.

But the message is clear. Whether you’re Wayne Gretzky, Bobby Orr or Carey Price, Canada’s Woke chorus will not abide insubordination to their cause. That includes much of the media. To paraphrase Jack Nicholson’s character in A Few Good Men, they can’t handle the truth. So shut up and pass the puck.”

At this rate Canada may run out of hockey gods who decamp to America. And heaven forbid Canadians ask how it is that their stars who have a chance to look at the True North from a different view come away with a new perspective.

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. You can see all his books at brucedowbigginbooks.ca.

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