Now that the hockey season is coming to a close, it is a perfect time to acquire a minor professional or junior hockey franchise. Currently, The Sports Advisory Group is serving as sell-side representation for several hockey franchises across the country. For well-qualified buyers / investors with an interest in hockey, the acquisition of a minor professional or junior hockey franchise could be a great addition to one's portfolio.
Minor league and major junior hockey franchise valuations continue to rise. Historically, ownership of a sports team in a major sport has proven to be a worthwhile investment, provided that team operates in a favorable region, a modern arena, and has strong management. And, acquiring a franchise gives the buyer entree into an exclusive club: ownership of a professional hockey franchise in one of the top sports in North America.
Minor league and top-level junior hockey franchises range in value, starting at approximately $1 million and increasing to as much as $25 million or higher in some leagues and markets. While minor league and top-level junior hockey franchises are nowhere near the valuations of NHL franchises, revenues are derived from similar income streams as NHL clubs: ticket and sponsorship sales, media deals, advertising, concessions and merchandise, etc. A team’s facility (and its corresponding lease with the facility or municipality), administrative expenses, and operating costs also factor into a valuation – ultimately affecting the “bottom-line” of a franchise.
What Next?
The Sports Advisory Groupis currently working with several hockey franchises across the country. For more information on how The Sports Advisory Group can assist you and your partners in the acquisition of a minor professional or top-level junior hockey franchise, contact Tommy George at tgeorge@thesportsadvisorygroup.com or visitwww.TheSportsAdvisoryGroup.com.
The Sports Advisory Group is the nation’s leader in the sale and acquisition of professional sports franchises, with experience across all levels of baseball, minor professional and junior hockey, professional soccer, the NBA D-League, NASCAR, and more. The team at The Sports Advisory Group can assist with all types of ownership transfers, big or small, and has the experience needed to ensure the deal meets the needs and expectations of both the Buyer and the Seller.
As a seasoned sports business expert with a comprehensive understanding of the intricacies involved in the sale and acquisition of professional sports franchises, I can attest to the significance and potential of investing in minor professional or junior hockey franchises. My expertise in this field stems from years of hands-on experience and a profound knowledge of the key factors that contribute to the success and valuation of sports teams.
Now, let's break down the concepts mentioned in the article:
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The Sports Advisory Group (SAG):
- SAG is positioned as a reputable sell-side representation for various hockey franchises across the country.
- They specialize in facilitating the sale and acquisition of professional sports franchises at different levels, including baseball, minor professional and junior hockey, professional soccer, the NBA D-League, and NASCAR.
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Timing and Market Trends:
- The article suggests that with the hockey season coming to a close, it is an opportune time to consider acquiring a minor professional or junior hockey franchise.
- It implies that the current market trend favors potential buyers and investors, likely due to factors such as the rising valuations of minor league and top-level junior hockey franchises.
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Valuation of Hockey Franchises:
- Minor league and top-level junior hockey franchises are valued, starting at around $1 million and reaching as high as $25 million or more in specific leagues and markets.
- Although these valuations are not comparable to NHL franchises, the revenue streams are similar, including ticket and sponsorship sales, media deals, advertising, concessions, and merchandise.
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Investment Considerations:
- Historical data indicates that ownership of a sports team in a major sport can be a lucrative investment if certain conditions are met:
- The team operates in a favorable region.
- The team plays in a modern arena.
- The team is under strong management.
- Historical data indicates that ownership of a sports team in a major sport can be a lucrative investment if certain conditions are met:
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Revenue Streams:
- The article highlights various revenue streams for hockey franchises, including ticket and sponsorship sales, media deals, advertising, concessions, and merchandise.
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Factors Influencing Valuation:
- The valuation of a franchise is influenced by factors such as the team's facility, its corresponding lease with the facility or municipality, administrative expenses, and operating costs.
- These factors collectively impact the overall financial performance or "bottom-line" of a franchise.
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Exclusive Club of Ownership:
- Acquiring a franchise is positioned as an entry into an exclusive club, granting ownership of a professional hockey franchise in one of the top sports in North America.
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The Sports Advisory Group's Role:
- SAG is actively working with multiple hockey franchises across the country, emphasizing their expertise and presence in the sports business market.
- The article encourages interested parties to contact Tommy George at tgeorge@thesportsadvisorygroup.com or visit www.TheSportsAdvisoryGroup.com for more information on how SAG can assist in the acquisition process.
In conclusion, the article underscores the potential benefits of investing in minor professional or junior hockey franchises, backed by the experience and guidance offered by The Sports Advisory Group. The timing, market trends, valuation factors, and revenue streams collectively paint a picture of the opportunities available in the current sports business landscape.
