Oilers worth $212M, Forbes magazine reports

EDMONTON – The value of the Edmonton Oilers jumped 16 per cent in the last year to $212 million US, Forbes magazine reported Wednesday.

The business publication’s annual survey of the NHL estimated the average value of National Hockey League teams at $240 million, up five per cent due to increased revenues.

The overall rise in value came despite the fact that more than half the league’s teams lost money during the 2010-11 season.

The Oilers are ranked as the league’s 15th most valuable franchise, with revenues of $96 million and profits of $17.3 million.

Forbes noted that Oilers’ owner Daryl Katz has struck a deal to build a $450-million arena to replace Rexall Place that could raise annual revenues by $20 million. However it noted Katz has little chance of moving the team if the deal falls through.

“But if the city does not pony up for the new arena it would appear Katz has few options, given the strong Canadian dollar is a strong incentive to remain in Canada and there is already at least one other U.S. NHL team looking to move north of the border.”

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The magazine said the overall rise in team values was mainly due to a five-per-cent increase in revenue during the season, to an average of $103 million per team.

But profitability was being eroded by player costs, which increased by 11 per cent, to $59 million.

The most highly valued team in the league remained the Toronto Maple Leafs, which Forbes valued at $521 million after a year that produced $81.8 million in operating income.

The New York Rangers ($507 million) and Montreal Canadiens ($445 million) were the second and third highest valued teams on the list.

The Phoenix Coyotes ($134 million) were the lowest valued franchise, below the New York Islanders ($149 million) and Columbus Blue Jackets ($152 million).

Last season, 18 of the league’s 30 teams lost money even before they had to pay bank loans or write down assets, compared with 16 teams the prior year, Forbes said.

With files from Reuters