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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

Eau Canada! Join Us In An Inclusive New National Anthem

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This past week has seen (some) Canadians celebrating their heritage— now that Mike Myers has officially reinterpreted Canadian culture as a hockey sweater and Mr. Dressup. This quick-change was so popular that Canadian voters even forgot an entire decade of Justin Trudeau.

In the United States, the people who elected Donald Trump– and not Andrew Coyne– to run their nation celebrated Independence Day with stirring renditions off The Star Spangled Banner, although few could surpass the brilliant performance of the song by the late Whitney Houston at the 1991 Super Bowl.

The CDN equivalent is some flavour of the month changing the words to O Canada at the Grey Cup game. Canada’s national anthem has always been open to interpretation by people who may or may not have Canada in their hearts. At the 2023 NBA All Star Game Canadian chanteuse Jully Black became the latest singer to attempt a manicure to the English lyrics of O Canada, penned for the 1880 Saint-Jean-Baptiste Day ceremony ( Calixa Lavallée composed the music, after which words were written by the poet and judge Sir Adolphe-Basile Routhier. The English lyrics have “evolved” over the years, just like the dress code for the CDN PM..)

Black amended the first line from “our home and native land” to our home ON native land”. Because something-something. But this creative license is nothing new. Unlike Chris Stapleton, Marvin Gaye or Whitney Houston with the Star Spangled Banner, interpreters of O Canada have seen fit to amend the lyrics to their sensibilities. Roger Doucet, famed anthem singer of the Montreal Canadiens in the 1970-80s, tried to add the words “we stand on guard for truth and liberty” in place of the first “we stand on guard for thee”.

In 1990, having nothing better to do, Toronto City Council voted 12 to 7 in favour of recommending that the phrase “our home and native land” be changed to “our home and cherished land” and that “in all thy sons command” be partly reverted to “in all of us command”. (The latter was officially adapted.)

While those attempts had mixed outcomes it appears it’s just a matter of time till Ms. Black’s class-conscious culling of the words is accepted. Being generous we here at IDLM thought we’d short-circuit piecemeal attempts to create a throughly Woke version of the anthem that would last till the latest fad come along. Herewith our 2023 definitive O Canada that even— maybe only— Justin Trudeau could love:

“O Canada” (Ignores the French fact in our culture) Change to “Eau Canada”

“Our home on native land” (ignores indigenous land claims) Change to “Get off our land, settlers”

“True patriot love in all of us commands” (Only true patriot love? There were officially 78 kinds of relationships in Trudeaupia. And commanding love?) Change to “Love the one you’re with”.

“With glowing hearts we see thee rise” (rise suggests triumph of white triumphalist dogma) Change to “Non judgementally we oppose the crushing impacts of Euro-based autocracy”

“The true north strong and free” (How can anyone be strong or free when we support America’s killing fields?) Change to “Heteronormative thinking must be stamped out at our borders. If we even have borders anymore.”

“From far and wide” (Body shaming) Change to “Obesity is a disease that is not helped by putting it in the national anthem.”

“O Canada” (biased against A, B, AB blood types) change to “Science Must Be Believed”

“We stand on guard for thee” (Spreads hate against the non ableist community) Change to “Please remain seated.”

“God keep our land” (God? God? What is this, the Reformation) “Change to “It’s your thing”

”Glorious and free” (Glorious harkens to the bourgeois subjugation of Indigenous thought processes by white Christian priests) Change to “A genocidal state if there ever was one”.

“O Canada we stand on guard for thee/ 

O Canada we stand on guard for thee”  The denial of trans rights is used twice here to emphasize the intolerable burdens faced by people of the LGBTQ2R community as they seek respect and compensation for the evils of the founding oppressors.) Change to “Eau Canada, after 6.5 hours of intensive lectures on the gender, race and dissociative application of class war on your citizens you may someday come to understand that this song is a manifestation of your bigotry and exploitation of minorities— and why rhyming lines like “thee and free” is the work of the devil or J.K. Rowling, whomever comes to mind first.”

There. That wasn’t so tough, was it? Flows trippingly off the tongue like Mark Carney refusing a special inquiry into China buying the electoral process.  Or perhaps we should simply accept a literal translation of the original French lyrics:

“O Canada!

Land of our ancestors

Glorious deeds circle your brow

For your arm knows how to wield the sword

Your arm knows how to carry the cross;

Your history is an epic

Of brilliant deeds

And your valour steeped in faith

Will protect our homes and our rights.”

Yikes. That’s downright fascistic. But it’s Quebec, and we have to allow them their peccadilloes. So circle your brow with glorious deeds, grab a cross and a sword and valour steeped in faith. And remember we must be adaptable in the new era.

Unless it’s Alberta using the adapting to fuel its CO2-belching machines. In which case it’s man the battlements and follow Mike Myers into the fight.

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

The Covid 19 Disaster: When Do We Get The Apologies?

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Breaking: Drs. Bonnie Henry and Theresa Tam have been appointed to the Order of Canada in recognition of their role in the country’s response to the COVID-19 pandemic.

And so the game of covid liar’s poker has more winners. It’s like awarding the captain of the Titanic the Nobel Prize for his work on floatation. As we now know these two— and the other WHO finger puppets in Canada— made the Covid 19 episode worse, not better, with their prescription for panic, positives and punishment. Even as they knew the truth about the limits of the virus and the efficacy of vaccines they continued to spew fallacious PCR data on the extent of the sickness and who was at risk.

Put simply, to protect vulnerable seniors they said kids were also at great risk. Which was unconscionable.

In this they encouraged Justin Trudeau in his worst instincts, combining his father’s insouciant disregard for civil rights (sending in the police) with his mother’s mental stability. Propped up by Team Tam and its U.S. allies such as Anthony Fauci, this hysteria peaked with a sequestered PM crushing the Truckers Convoy’s vaccine protest with emergency measures and destruction of civil liberties.

Lest you wonder, this overreach was recognized at the time. Justice Maclean wrote at the trial of Convoy organizers, “Defendants & other persons remain at liberty to engage in a peaceful, lawful & safe protest”. On Feb. 16, he continued a no-honking order, again writing:  “Defendants & other persons remain  at liberty to engage in a peaceful, lawful & safe protest.”

The leaders of the Convoy, lynched by Canadian media’s phoney claims of right-wing American interference, are still fighting jail time on charges of nuisance. While violent criminals are routinely released on bail or absolved.

Justice Richard Mosley later concluded that while the convoy was a disruption of public order, it didn’t constitute a national emergency and invoking the act “does not bear the hallmarks of reasonableness — justification, transparency and intelligibility.” But in real time Team Tam made no attempts to correct the wilder misgivings about Covid (lockdowns, mandatory vaccines). Trudeau was given a hall pass. Needless to say the purchased media made things infinitely worse regurgitating these mistakes.

In short, they knew better but hid the truth. But why pick on Henry and Tam? Under Trudeau and his wingman Jagmeet Singh this was the golden age of lies and prevarications in Canada and the U.S. No apologies were ever offered when the truth emerged.

As we’ve noted before, Trudeau cried with a teddy bear carefully positioned over 751 alleged unmarked graves in a known Catholic cemetery that the local Cowessess band abandoned. The Liberal government knew the claim of 215 “children’s graves” was false, and still ran with it to get Trudeau his photo-op. Naturally the CBC Media Party played (and still plays) accomplice in this farce as the Canadian flag was lowered to half-mast for six months and Trudeau ratted out Canada at the UN as a genocidal state.

There were more, plenty more Trudeau scandals that media endorsed and then stood by even as the truth was revealed. SNC Lavalin. We Charity. Arrive Can app. Firing indigenous justice minister. Chinese drug infiltration/ money laundering. Nazi Celebrated in Parliament. Welcome To Canada immigration. Nova Scotia massacre. McKinsey Consultation. Blackface. And so on.

And were there apologies when it came time to make the Trudeau Liberals accountable? No, they staged a media circus over Donald Trump’s assertion of 51st state. All the fake news and deliberate lies went poof, allowing Mark Carney to seamlessly assume the PM job.

Lest We Forget Pt. 2 it was not exclusive to Canada. As we are now learning: Barack Obama and Joe Biden sat in an August 3, 2016 Situation Room briefing and said, yeah, let the highest officials in our administration fabricate evidence to frame the opposing party candidate Donald Trump. Obama. Biden. Comey. McCabe. Strzok. Page. Rice. Etc.

Knowingly using the faked Clinton campaign ‘Steele Dossier’ hoax, they launched a federal investigation into the Trump presidential campaign that lasted three years after Trump was sworn in as the nation’s 45th President. Arresting and jailing his partners and colleagues. Inventing fake stories for their media enablers. Let’s repeat that. Saint Obama knew there was criminal activity in the process but let his henchmen try to fix an election.

And when the ruse was uncovered no one apologized. No one in authority was fired or jailed. The Pulitzer Prizes awarded to the NT Times and Washington Post for disseminating the DEMs scandal were not rescinded. Nor were they given back by the lying newspapers.

The concerted frauds of the same U.S. DOJ, FBI and State Departments were fed by media and accepted by gullible publics in Canada and America. The fantastical 2020 election results were likewise drummed into the public irrespective of the sudden “appearance” of 27 million new votes during a pandemic.

It was all a fitting preamble to the 2020-2024 Biden senility scandal with Democrats running a man they knew was in full dementia. In the 2020 election Biden was hidden from public view, the better to let media attack Trump for spurious charges launched by partisan DNC attorneys in Georgia, New York and DC. Even then it took the suppression of Hunter Biden’s incriminating laptop just prior to the election to get his father elected.

The dance of denial continued in Biden’s term as he physically and mentally deteriorated before the American public. But inquiries about who was running the government if not Biden were harshly suppressed. Media lackeys noted he was sharp as a tack mentally and in tip-top physical condition when he wasn’t falling down stairs.

It took the stunning 2024 debate debacle with Trump to strip away the lies about Biden’s health, now said to be advanced prostate cancer and Parkinson’s. The media, caught in their own lies about Biden’s condition, offered no apologies and tried to blame Biden’s stutter for the performance.. Right.

These were the two greatest U.S. hoaxes from people who’d cried hoax incessantly. They were hardly the only abuse of public trust. Some of the perpetrators are said to now be under investigation— even as they hand out awards to each other. The media’s credibility is shattered and yet they still blame others. Jaded voters are taking a “we’ll see” approach. But expectations of any change in DC or Ottawa are limited.

As Stephen Taylor posted on X: “Turns out for Liberals, ‘elbows up’ just means ‘noses up’ like it always has.”

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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