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

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
WOKE NBA Stars Seems Natural For CDN Advertisers. Why Won’t They Bite?

The wonderful people who brought you Elbows Up and Don’t Shop At Home Depot! are now on to Edmonton Oilers Bring Home The Cup. In response to no Canadian-based team winning the Stanley Cup since 1993 the corporate nostalgia folks are linking arms with Connor McDavid & Co in their struggle with the dastardly Florida Panthers. The Oil are now Canada’s team!
In one bit they were taking ice shavings from McDavid’s home rink in southern Ontario to mix with the frozen Zamboni water of Edmonton’s Rogers Place arena. Okay, they have eight players on the Oilers roster who aren’t Canadian (hello Leon Draisaitl), and the stars now killing it for the Panthers, Sam Bennett and Brad Marchand, are from Ontario. But never mind. Like playing Mr. Dressup trivia with Mike Meyers it’s just too good an idea to waste.
The outcome of all this patriotic wind therapy will be determined Tuesday— or Thursday at the latest. But it will have achieved the desired goal of warming the cockles of all those Canadians who turtled in the election, flipping back to Mark Carney’s Liberals when the going got a little rough with Donald Trump. Resulting in a maximum four more years of Carney’s faculty lounge of dunces and Kamala Harris clones.
While the marketers were playing the Maple Syrup March over the Stanley Cup Final they missed an even better opportunity to marry Canadian patriotism with sport. We speak, of course, of the inevitable crowning of Canadian stars as champions of the NBA. In fact the entire progress of the postseason in the sneaker league has witnessed great Canadian results.
Not least of which: Hamilton’s Shai Gilgeous Alexander winning the NBA MVP while leading his Oklahoma City Thunder to the brink of the NBA crown. For those distracted by Stu Skinner and Corey Perry, SGA is a revelation, If you missed him leading Canada back to the Olympics last year the wiry 26-year-old is a lithe, unstoppable chinook who routinely scores 30 points a game.

He has help from another Canadian, Montreal’s Lu Dort, a finalist for NBA defensive player of the year, who also led Canada to the Olympics. As unstoppable as SGA is, Dort is immovable. But that’s not all the Canadian content. In the Finals they are up against two more Canadian teammates from last year. Aurora Ont.’s Andrew Nembhard is the back-court catalyst for Tyrese Haliburton’s Indian Pacers, taking them to the Eastern title and within two wins of the NBA title. He’s assisted by another Canadian, Montreal’s Benedict Mathurin, the hero of the Game 3 win for the Pacers. They’re now household names.

The Canadian content didn’t end there, either. In the semifinals, the Thunder beat the Minnesota Timberwolves featuring SGA’s cousin Nickeil Alexander-Walker , another alumnus of the CDN national team. At one point the two close friends were anything but friendly, shoving each other under the basket.
They had Canadian company in the postseason. In earlier rounds R.J. Barrett and the New York Knicks made it to the second round in the East, Jamal Murray’s Denver Nuggets fell to the Thunder in Round Two, while the Houston Rockets and Mississauga’s Dillon Brooks, a tenacious physical presence, lost to Steph Curry’s Golden State Warriors . Meanwhile, Corey Joseph’s Orlando Magic lost in the first round to Boston.
But the Canadian content didn’t end there. The Toronto Raptors, NBA champs of 2019, are now spread throughout the league, affording nostalgic Canadian fans a rooting playoff interest in players such as Pascal Siakim, who’s pairing with Nembhard and Mathurin to push the upset-minded Pacers, shooting guard OG Anunoby teamed with small forward R.J. Barrett on the Knicks and point guard Fred Van Vliet of the Rockets. All harkened back to the Raptors’ greatest days.
But in the heat of Elbows Up marketing these great performances don’t seem to get a sniff from marketers looking to promote Canadian unity in these fractious days. While the sports networks give airtime to the stories in the Association. the general public and advertisers have little time or inclination to draw patriotic strength from these young men.
Before we completely condemn Canadian marketers it should be noted that the interest in the NBA in general is waning. The NBA has lost 75 percent of its TV audience since the Michael Jordan peak while many other sports — NFL, men’s & women’s college basketball, college football — have set record TV ratings. Yes, TV ratings in many fields have dropped since the 1990s. Still, it seems significant.
The problem for the NBA in a Time of Trump is its embrace of hard-left politics. Whether it’s LeBron James defending Chinese shoe manufacturers, the slavish devotion to #BLM even as its corruption is revealed and a maniacal obsession with Donald Trump (and embrace of Kamala Harris) the NBA has made its bed with radical political and cultural elements. It’s as if the Trump election and cultural shift never happened.
In this wilful blindness they are supported by their media partners whose own credibility is at an all-time low after carrying water for the Biden farce and Kamala’s erasure. Ironically, this is the same political crash car running Canadian politics at the moment. You’d think that would make the NBA— and its sister Women’s NBA—like catnip to the Canada Not For Sale crew.
So far the hockey quest is foremost in their minds. But perhaps when SGA holds the Larry O’Brien Trophy they might just achieve the symbiosis that the sport has always coveted.
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.
Bruce Dowbiggin
Canadians Thinks America Owes Them. Trump Has Other Ideas

Breaking: It’s now being reported that in the 2024 U.S. election, zero Canadians voted for Donald Trump. In fact, zero Canadians voted for anyone on the ballot. They’re not allowed to. And yet rage monkeys in the Canadian media seem to have the idea that Canada is— and should be— an immediate priority of POTUS 47.
Here’s Globe & Mail/ CBC wind therapist Andrew Coyne about ten exits past normal on the idea of Donald Trump on Canadian soil. Okay, on Alberta soil. “We’re going to roll out the red carpet for the wannabe dictator of America at the very moment he is moving to suppress dissent with armed force?” (You mean like the Truckers Convoy?)
Cartoonist Michael DeAdder, who likely cries if you use improper pronouns, says “Hold my kombucha”. His latest etching has Trump asking a veteran what he did in the war. The witty retort is “Fought against people like you”. Get it? Trump murders six millions Jews. But The Hill keeps this guy working, and the laughs just keep on coming. Free speech!

The presumption is jaw-dropping. Even as Trump’s approval rating hits 53 percent, Canadians online were echoing Democrats’ fever dreams of forming a shadow government to take over from Trump via coup. This sense of impunity at a distance is why the Canadian government— along with other drive-by virtue signallers UK, Norway, New Zealand, and Australia— have imposed sanctions on two sitting members of the Israeli cabinet. They know it will rile Trump’s America.
For ordinary Canadians, Trump became a post-it note to justify giving Team Liberal another swing at ruining the nation. “We used to be such friends! He’s a tyrant.!” This just in: Love him or hate him Trump is employed by Americans to do their bidding. He’s not a sentimental buddy of Canada who’ll cut us some slack for old time’s sake. He has no remittance from Canada to please the Laurentian elites. If your defence is non-existent and your military gender-obsessed: you had it coming.
Are his policies jostling Canada? Absolutely. Read Art of the Deal. The 51st state jibe when Justin soiled himself was rude. But it worked on pliant Canadian liberals. Now the The Little Banker is disavowing the dissolute decade of Trudeau while employing Conservatives’ policies on defence spending, inter-provincial trade and border security. Hell, he’s naming longtime Tories to his personal staff.

In the end Carney knows this ain’t mock Parliament. That his dossier begins and ends with satisfying the beast to the south. None of this should be a surprise. Yet Canadians dozed when Trump made clear in his election campaign that the American economy is the greatest in the world. If you want to fish in that pond it’s not going to be for free. That means tariffs for a range of U.S. industries that couldn’t compete in a Biden world.
We can argue how well tariffs work, but Trump wants them to reduce taxes on the people who elected him. Not the Canadians who fly first class but pay economy. And who have pushed his approval ratings into the 50s, higher than ever before. (Likely to spike higher after the No Kings Riot season peters out.)
No wonder Canadians preferred the guy before Trump, the senile sock puppet whose government was run by anonymous figures using the auto-pen. Sleepy Joe let Canada slide into mediocrity and financial peril without any judgement. It was comfortable. Then The Donald had the nerve to expose the ditch Canada was in.
Canada, Trump pointed out, was delinquent on its defence, harbouring Chinese drug lords, printing money like Canadian Tire and its banks were involved in money laundering. That was the nice stuff. Try Organized fentanyl networks operating with impunity in the largest cities of the nation So dumping on Trump in salty cartoons allows Canada’s Mod Squad to ignore the real issues that should have been litigated in the April election.
We have written extensively about the ruse that was played on gormless Canadians in “U.S. Voters Smelled A Rat But Canadian Voters Bought The Cheese” We have catalogued Canada’s drug and money laundering disgrace in “Chinese Gangs Dominate Canada: Why Will Voters Give Liberals Another Term?” We’ve described the real-estate bubble economy created by Trudeau and sidekick Carney that threatens to crash the economy and ruin seniors’ pensions in
In the end, it is still la-la-la-la We Can’t Hear You. Trump-obsessed Boomers more concerned with the equity in their jumped-up bungalows gave the finger to the next generations and blamed it all on Orange Man Bad. In the monotone of Canadian political comment it all seemed so easy. Turn against Trump. Cash another dividend. Cheer on MSNBC and CNN bitch sessions.
The Family Compact don’t get it. Their Antifa heroes down south plan demos and “nonviolent” activity to crater the public resolve. In Canada that still works. But in the U.S. the Covid reverb is hitting the natural governing class of the nation. While they craft fine phrases about democracy the consumers remember them using a virus to stop society.
The appetite for Gavin Newsom blovaitors and Jen Psaki fart catchers is crashing in America. Riots may be coming in the U.S., but it won’t be like George Floyd and Covid and the pussy hats. At some point Canada’s docile classes better wake up, too. America owes them nothing. They need to earn the respect.
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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