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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

Why Canada’s Elites Are Captives To The Kamala Narrative

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“As he closes the election with rank racism, relentless unreality and authoritarian threats, Trump’s popularity among Canadian Conservatives is higher than ever. This seems like it could be a problem”.— Bruce Arthur, Toronto Star 

A problem for whom, Bruce? It’s telling that while 50 percent of Americans see through Kamala Harris and the DEMs coup narrative as complete bushwah, probably 90 percent of Canadians– led by Arthur and the corporate media– lap up this condescending narrative. Their biggest fear remains that the populist revolt against authority in the U.S. might threaten Canada’s elite class. Like Toronto Star squishy columnists.

In the hermetically sealed media world of Canada, natives take their cues from CNN and MSNBC talking points both of which employ Canadians in highly visible roles. (Here’s expat Ali Velshi famously describing on NBC that the 2020 George Floyd riots that burned for weeks— destroying billions in damages while resulting in multipole deaths— as “generally peaceful”

The narratives of Russiagate, drinking bleach, “fine people” to Hunter Biden’s laptop— long ago debunked down south— are still approved wisdom in Canada’s chattering class. Especially if America’s conflagration election can be used to demonstrate the good sense and judgment of Canada’s managerial and media class.

The northern pecksniffs have loads of insanity to work with as Trump seemingly edges ahead in polls. There’s the brouhaha over a shock comedian at a Trump rally calling Puerto Rico “a floating island of garbage”. Unhinged outgoing POTUS Biden then called GOP voters “garbage”. So Trump made an appearance as a garbage man, to the shrieking disapproval of CBS News chief anchor Nora O’Donnell.

Then there’s Whoopi Goldberg on The View predicting Trump will “break up interracial marriages and redistribute the white spouses: “He’s going to deport and you, put the white guy with someone else… The man is out there!” Forget that Trump did nothing of the sort when he was president from 2016-2020. It’s every hysteric for himself as Nov. 5 looms. Their biggest fear? Those who vilified Trump the past decade will be out of the power loop for at least four years— or longer if VP candidate J.D. Vance extends the Trump revolution. It’s panic time.

Picked up on by those fearing their place in the Canadian power grid might fall next. The disdainful cheers from Arthur and Andrew Coyne and the CBC bien pensants at each thrust of Trump-as-Nazi echo through a press corps which now fawns over Mark Carney, the bespoke banker/ heir apparent to Trudeau. They grasp at each anti-Trump narrative like starving men in the desert.

It’s 1990s redux in Ottawa as think-tank Aristotles work to reinforce their status quo. While a public that has CPC ahead by 20 points in the polls demands change, the Liberal/ NDP cabal want that old-time political religion of insider baseball Ottawa-style. Here’s NDP attack bot Kathleen Monk insisting that PM-in-waiting Pierre Poilievre get security clearance on the Chinese election interference case so that he might better be skewered for not telling Canadians the truth included in them about how their elections are being subverted by the Chinese.

No one drawing a Liberal support cheque worries aloud that Trudeau knows the truth contained in this files, that it’s injurious to him and the NDPs, that Canadians need to know the names of MPs and senators taking bribes, why a police request sat on a minister’s desk for 54 days unopened. It’s Poilievre/ Trump who’s untrustworthy. It’s a strategy that the Libs and NDP pray Poilievre will fall for. Pierre’s sin is he doesn’t believe the public should depend on government for everything. That’s heresy in Canada’s Family Compact, and so the Trump comparisons.

The anti-Trump vendetta also means that Canadians have decided that Elon Musk, the pre-eminent genius of the 21st century— is now Josef Goebbels to Trump’s Hitler. As we wrote recently “on his way to immortality Elon Musk made one critical mistake: purchasing the website Twitter, now re-branded as X. In doing so he fired 90 percent of the previous staff and instituted a policy of open speech for the Right on the site— starting with restoring Donald Trump’s account. Which put Musk on the Hit List for leftist plutocrats.” 

So now the sneering scribes are going after him, too, in spite of his Canadian citizenship. This is no small thing as Canadians reflexively grab at any shred of CanCon elsewhere. Canadian politics under the Liberals has become a vedette exercise since Pierre Trudeau started dating Funny Girl Barbra Streisand.  In the U.S. outsiders to the political system are rare. Much of the pearl clutching about Trump results from his not being manipulated by the byzantine American political universe.

In cases such as Barack Obama and Kamala Harris, the nominees were moulded by the machine to highlight their acceptability. Ronald Reagan excepted, the insider track is the preferred route to a nomination in either party. Biden personified lifelong membership in the insiders club. As did John Kerry, Mitt Romney, Al Gore, John McCain, Walter Mondale, Mike Dukakis, Gerald Ford, John Kennedy, Richard Nixon and so on.

But in Canada, the Liberal party in particular now disdains the tried-and-true. After decades of zero-charisma PMs such as Mackenzie King, Louis St. Laurent and Mike Pearson, the Grits went ga-ga for the international flair of PET. His irreverence and impertinence on the world stage was catnip to Liberals as the 1960s cultural revolution shook up staid Canada. Since then the blue print has listed more toward “star” candidates from outside the party, such as Michael Ignatieff, Stephane Dion, Justin Trudeau and now Mark Carney.

Trudeau II is the epitome of the vedette candidate, bathed by the glow of U.S. magazines and slathering leftists in Europe. Liberals felt vital as long as the trust-fund PM got props from outside, such as when WEF honcho Klaus Schwab outed Skippy as one of his lieutenants. Trump, the antithesis of the Dauphin, is a blustery carny riding the wings of populist outrage. His crass, bumptious style personally offends the sensibilities of Toronto Star scribblers and CBC wind therapists.

The clincher for Canadians is the overwhelming Kamala love from the Hollywood crowd. Virtually every high-profile actor/ singer/ writer has embraced the woman who was parachuted into the nomination in a coup— even as the glitterati raved about anti-democratic Trump. From Beyoncé to Bilie Eilish to Bruce Springsteen, their support has been a winner in Canada’s fangirl/ fanboy culture.

So as we head to next Tuesday’s end to the election marathon in America, the finger-wagging will increase as Canadians try to elevate themselves above a nation that, for all its faults, has actually staged a policy choice. Meanwhile in Canada, NDP leader Jagmeet Singh once again embraces his coalition with a drowning Trudeau for another year.

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. 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

Musk Win: How Elon’s Heel Turn Has Driven The Left Insane

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It’s not often that we can watch the workings of our modern world with childlike glee. But glee might be the best word to describe the feelings of most as they watched the stunning safe return of the booster rocket from Starship X. The video showed how the arms of the Starship X tower grabbed the rocket from out of thin air as it slowly descended to earth, gently place it safely back on the launch pad.

In normal times the person who created such a company would be hailed as the pinnacle of human potential. Add in that he has also created revolutionary electric cars and Starlink satellite systems and the PayPal network and you’d probably nominate the South African/ Canadian in question as a permanent Nobel winner. He’s among the world’s richest people as a result.

But on his way to immortality Elon Musk made one critical mistake: purchasing the website Twitter, now re-branded as X. In doing so he fired 90 percent of the previous staff and instituted a policy of open speech for the Right on the site— starting with restoring Donald Trump’s account. Which put Musk on the Hit List for leftist plutocrats.

How? He hired prominent independent journalists such as Bari Weiss, Michael Shellenberg and Matt Taibbi to show that Twitter, along with Facebook and other prominent social media sites, had been paid to censor opponents at the behest of the Joe Biden campaign during the 2020 election. He started posting about the disturbing contrast of America’s voting system (results up to three weeks after election) compared to Argentina (6.6 hours).  He pointed out that America is broke, saying things like “”The reason why I’m involved in politics this time, is because this time it’s a fork in the road. I think we’re doomed if Trump doesn’t win, so he’s gotta win.”.

From worshipful respect, Musk was suddenly met with scorn, derision and, in Europe, plans to censor him permanently. Brazil shut down X completely. British intelligence targeted his association with Trump. The radical Left in the U.S., accustomed to its version of truth, suddenly decided that Musk was in line with Nazis and the Far Right.

As blogger Mike Benz notes, the deep state targeted him for not playing along. “CCDH — whose explicit written goal is to “Kill Musk’s Twitter” — not only has its Chairman come from NATO’s Atlantic Council, its former Comms chief was a CIA operative who worked extensively in NATO intelligence ops… CCDH’s former Head of Communications is a self-described “CIA operative” in her own Twitter bio (!!) with an extensive history of NATO operations: ‘Covert operations, intelligence & disinformation’”

While admitting that he’ll likely be in jail within six months of Kamala Harris winning the presidency, Musk is unfazed. Here’s fired CNN talking head Don Lemon challenging— and losing— on Musk’s commitment to free speech. But Musk’s deft debating didn’t discourage the purchased media of the left from trying some more.

Here’s Vanity Fair excoriating Musk for veering from their catechism. Here is reliably lunatic NBC News saying Musk is— gasp— against DEI. For good measure here’s Reuters giving an airing of former Twitter employees grievances against Musk. Topped by president Joe Biden’s demand to “Politically, lock him up — lock him out, that’s what we’ve got to do,” said even as he president’s Justice Department was in fact trying to jail Mr. Trump literally.

When he realized that the Left was using him as a piñata Musk responded to the onslaught by making an alliance with former president Donald Trump, the Beelzebub of Woke folk and the bureaucrat’s nightmare. Because Trump, the braggart, was at least in favour of free speech for other braggarts, Musk agreed to join his team after the election as Efficiency Czar for government.

Musk began saying things like he’d reduce the approximately 340 agencies in the U.S. federal government to just 90. He also questioned the usefulness of most people in the DC bubble. He began asking why the government’s $42 B plan for rural internet, awash in delay and debt, shouldn’t be shelved for his Starlink system which already serves customers at a fraction of Kamala Harris’ white elephant.

While he was at it, Musk also eviscerated the DEMs pet cause of border reform. “If given 4 more years to do it, the big govt machine will legalize vast numbers of illegals, making all swing states permanently deep blue, just like they did with California. Every major Democrat politician has stated that their goal is to legalize all illegals. Believe them.

If you thought January 6, 2021, was a shock to Washington’s privilege, a Musk efficiency regime— combined with RFK Jr taking on the healthcare industry— will be tantamount to setting off a thermo-nuclear device beneath the Senate lunchroom. Democrats and the trained hamsters of the GOP establishment swore a fatwa on a guy whom they’d venerated not long ago.

Here’s the New York Times, party organ of the DNC, on Musk’s Efficiency commission. “That would essentially give the world’s richest man and a major government contractor the power to regulate the regulators who hold sway over his companies, amounting to a potentially enormous conflict of interest.” Yahoo calls him a threat to national security because something something something. MSNBC, the TV voice of Woke Washington, declarded that Musk is using his power to sue his critics into silence.

But such is the temperature of the DEI Left as it faces imminent destruction in the 2024 election. Having rationalized two assassination attempts on Trump they now nurse snuff fantasies about eliminating Musk the Menace. As legal scholar Jonathan Hurley writes, “It is all part of Musk mania and the need to break the only executive who has defied the anti-free speech movement.”

You can measure their panic by the employment of DEMs superstars like Barack and Michelle Obama and the odious Clintons. While the obsequious Obama laments division in the body politic, Kamala Harris states: “Trump is literally Hitler and he will use the military to kill US citizens.”

Obama, who institutionalized the Racism® industry upon his winning the presidency, is accusing Trump and Musk of… you guessed it… racism for dividing Americans. From Henry Louis Gates to struggle sessions in the military to embracing race hustlers with ankle bracelets in the White House, Obama guaranteed the George Floyd America as it heads to the polls on November 5. Before Musk bought Twitter, he got away with it all, But a Musk X has exposed the glib Obama as a petty Marxist tyrant.

That a transitional figure such as Musk is being sacrificed to the altar of Woke politics is, regrettably, no surprise in these times. Which makes it no less reprehensible. The Obama motto regarding enemies is “No one gets out alive”. Perhaps Musk should heed A.E. Houseman who observed, “smart lad to slip betimes away from fields where glory does not stay. For early though the laurel goes, it withers sooner than the rose.”

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. 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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