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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

Mistrial Declared in Junior Hockey Assault Trial. What Now?

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With all the Elbows Up election idiocy you can be forgiven for missing the news this past week that the trial of five former members of the 2018 men’s gold-medal winning Team Canada hockey team was declared a mistrial just a day into the proceedings. The five have all plead not guilty.

On Friday the judge ordered a new jury be empanelled after a half day of evidence in the trial of the players who are accused of sexually assaulting a woman in a hotel room in 2018 in London, Ont. Superior Court Justice Maria Carroccia has not released the reasons she halted the trial. It comes after outrage over a civil settlement between the victim and Hockey Canada in 2020 forced authorities to pursue the criminal charges.

The graphic nature of the evidence so far promises dramatic testimony should the trial go its full length. Thoughts that one of the quintet might accept a plea deal to roll over on his former teammates— a goal of the police and prosecution— have so far been unrealized. It is expected that the victim will testify.

The low-profile start to the trial in the case is a contrast with the front-page treatment it received after excellent reporting from Katie Strang of The Athletic and Rick Westhead of TSN. At the time the charges were announced in 2024, Michael McLeod and Cal Foote were with the New Jersey Devils, Dillon Dubé was with the Calgary Flames and Carter Hart was with the Philadelphia Flyers. Alex Formenton had been signed by the Ottawa Senators but was playing in Switzerland.

The sensation was amplified by the role of Hockey Canada in the civil case, using funds to pay off the victim. Parliamentary hearings and front-page headlines added to the impact.

As we wrote in January of 2024, the hysteria encouraged the usual radicals to denigrate the national sport. “For the same reason that some think guns kill people, the toffs believe that hockey itself causes outbreaks of macho sexual behaviour. These people cheer for Sweden when it plays Canada because… Canadian hockey is just too down-market for them. Sweaty guys. Cold rinks. Meritocracy. Ick!

“We should clarify here that we mean men’s hockey. Womens’ hockey is not included in the loathing. In fact, metrosexuals from PM Justin Trudeau on down worship the wholesome new PWHL. Skippy recently gave a pep talk to the Ottawa players in their dressing room. Surprise. They lost.

“Players are married to rivals on other teams. Can you get more hip than that?  Women’s hockey is nominally about winning; the real prize is equal pay for work of equal value. And the love of the Trudeau cabinet.

“But men’s hockey, with its crude meritocracy, must be shunned at all costs. Pediatric “experts” blame its emphasis on winning for causing kids to drop out.. So when the sordid tale of a 2018 multiple-sex allegation at a golf tournament arrived it warranted a hearing in the Commons, tut-tutting editorials by the score about the over-sexed nature of teenaged young hockey stars and multiple attempts to convict someone, anyone, for the act.

“That’s why the principals eventually pursued a civil case, where rules of evidence are less stringent. A civil case that Hockey Canada quickly paid off from a suspicious slush fund to end the ordeal for everyone. How’d that work out?

”Feminists and the non-binary set howled about this, but after the storm of outrage the media cycle disappeared from the public view. The 20 or so players on the 2018 Team Canada gold medal winners graduated into the NHL, and the league, which had no power to compel testimony nor a criminal charges to rely on, let them play.

“But pressure on police over the following months finally forced criminal charges. Butter cloak of secrecy prevailed. This was highly unsatisfactory. Who was under suspicion? Who was innocent? Player agents and lawyers kept their charges from self-incrimination at all costs.

“How will it end? Will there be convictions or will deals be done? In this time where social-media truths are fungible and Woke causes are paramount no one should hazard a guess. But one thing that will get an airing is the charge that hockey created this climate of sexual permissiveness. The sport must be condemned when its participants break the law.

You think that hockey caused this? That it doesn’t happen in the world of millionaire basketball or football or baseball players? Guess again. Cleveland Browns QB DeShaun Watson faced 24 sexual assault accusations. One former NBA player had seven children by six different women. Former MLB pitcher Trevor Bauer faced sexual assault charges from an alleged assault at his home.

How about the stories of young women who, like the young women pursuing athletes, went backstage at concerts and shows for a rendezvous with a famous rock star like Steven Tyler or Axl Rose and got more than they bargained for.

Or those who tried to climb the political or corporate ladder by submitting to power figures? Hello, Kamala Harris. This case is about power, stardom, privilege and exploitation. Ugly, yes. Life-wrecking for some. But trying to pigeon-hole hockey as the unique engineer of the tragedy is ignorant and irresponsible. “

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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2025 Federal Election

Trump Has Driven Canadians Crazy. This Is How Crazy.

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“Liberalism is based on one central desire: to look cool in front of others in order to get love. Preaching tolerance makes you look cooler than saying something like, ‘Please lower my taxes.’”— Greg Gutfeld

Having lived 25 years in the West after 45+ years in the East we can now generalize on the state of the nation. In the West the attitude is to grasp the future. Not fear it. Accept risk and loss as partners. In the East the default sentiment is to fear the future. Think of every reason why it might fail.

Quebec fears losing its culture. Ontario fears losing its power. The Maritimes fear losing equalization money. Hence Danielle Smith and Doug Ford as contrasting symbols of leadership. But 2025 is something new.

Donald Trump’s unsparing assessments of modern Canada— “We don’t really want Canada to make cars for us, to put it bluntly. We want to make our own cars — and we’re now equipped to do that”— have exposed this fissure in the country. Is it him or is it us? Families and friendships are being destroyed by the response. As Canadians head to the polls it’s obvious that persuasion is not going to apply in this climate. Arguments are falling on deaf ears.

With a large segment of the population doubling down on a failed past it’s time to make an I-told-you list of the implications of letting Donald Trump scare you into voting for a re-run of the Liberal Party. Double this dread if the Liberals get a majority.

To those Boomers living off the equity in their paid-off homes, get ready to be taxed on the appreciation in your homes. While you cherish your stand-alone private residence, get ready for the neighbours to sell out to someone who will erect a six-storey, 36-unit condo on the property right next to you because “sustainable growth”.

Got someone under 50 in your life? The Carney Reflex is bad news. Adding debt and embracing the destructive Trudeau social positions is a killer for those looking to commit to a future in Canada. Should Poilievre lose the election and his seat expect a brain drain away from the failed state. And the prosperity they create to vacate as well.

To those who cherish free expression expect hate-speech laws like those in UK where police will arrest you in your homes for social-media comment hostile to the ruling Party. And even if you shut down your posts watch out for neighbours who will exploit snitch lines to get you out of the hood.

Buttressing the party line, Carney will restore CBC’s funding— and then some— to drown out any social media pointing out the indelicate facts about his Trudeau-sourced cabinet members. He’ll also keep propping up failing private media, preventing them from bankruptcy so long as they spew DEI 24/7/365.

For those who cried fake tears over the Rez school graves scandal, watch Liberals pass legislation that gives unelected leaders of indigenous communities veto power over development of Crown Lands. Expect the Liberals, trying to maintain the NDP vote they assumed this year, to resurrect the “genocide” label against Canadians and fly flags at half mast again.

If you hoped to get to the bottom of innumerable scandals on the Liberals watch— ranging from eco-theft to China infiltration— Carney will put the clamps on any inquiry. The steady stream of Canada’s wealth to third-world kleptocrats will become a flood.

To those who thought Mark Carney had cancelled the consumer carbon tax, prepare yourself to find out that he just reduced it and will come back full-throttle as soon as the Conservatives fire Pierre Poilievre. While Carney plays the Housing Saviour he will also use the Carbon Tax to make concrete and fertilizer way more expensive, thus boosting the cost of the 50,000 homes he will never build and farm land will go fallow.

With CPC out of the way, expect no significant moves to end Canada as the money laundering capital of the world, the global fentanyl hub, international home to organized crime heads and a reported 1 in 7,800 residents as members of organized crime.

Batten down the hatches as Carney’s Liberals use their mandate to maintain the immigration deluge, thereby destroying Canada’s support systems for health, infrastructure and burying western values.

Get set for all your fossil-fuelled vehicles and heating to be taxed into oblivion with the proceeds going to more bike lanes, clogged public transportation on unreliable electric vehicles. Expect listening to obnoxious Quebec politicians brag on their “clean” hydro power.

Speaking of vehicles, the Sheila Copps set mocked Poilievre’s vision of urban hell where cops tell you not to protect your goods in a home smash-and-grab or car-jacking. With police ceding the field to organized gangs it will be open season as courts and the Liberals abandon the middle class to obey DEI imperatives.

And most of all, welcome to a full-fledged constitutional crisis sparked by Alberta and Quebec that will make the 1980s federal/ provincial rumbles look like Sunday school. Both will seek referendums from their voters on sovereignty or some equivalent. As we suggested last month the best case could be the UK model of regional parliaments. Saskatchewan and Alberta could join with indigenous communities to demand a regional say on how their revenues are distributed. Expect purchased media to humble brag for the ruling Liberals.

The worst outcome of Carney as PM is Alberta gaining independence or, gasp, joining America. Because Quebec can never get a better deal outside Canada expect them to use any momentum on sovereignty to extort further concessions from what’s left of Canada.

But why believe us? According to the report released in early 2025 by Policy Horizons Canada — the Government of Canada’s in-house think tank— upward social mobility could become a relic of the past, with wealth and opportunity increasingly inherited rather than earned.  Their scenario outlines a country where rising inequality, inaccessible housing, and a broken promise of meritocracy leave younger generations disillusioned, disconnected, and doubtful that effort alone can improve their lives.

So with scant days left in the campaign the problem for Conservatives is not that the Liberal base believes Carney and their heroes. They’ve seen enough to know Mr. Burns is a fraud. But with their #TDS the true believers will never admit to backing a lying, losing hype train. That would be like death to them. So they’re closing their eyes and hoping it will all be over soon and they can go back to Mr. Dressup. Just know their kids will never forgive them.

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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