Despite the on-ice performance of the Calgary Flames being less than spectacular this season, the organization’s off-ice performance looks to have gotten a major boost.
In the latest appraisal by Sportico of NHL franchises, the franchise value of the Flames jumped 31% to $1.14B in their 2023 report.
That is some serious value.
NHL business is booming
In general, the NHL appears to be thriving from a financial perspective after a few years of darkness thanks to the pandemic. In the report from last year, the average NHL franchise value was $1B which was the first time in history it hit that mark.
This year the average jumped to $1.31B, which is staggering.
Most of this is driven by several high-priority sales that have occurred since that report, mainly Michael Andlauer’s sale of his shares in the Montreal Canadiens and subsequent purchase of the Senators. There were also other shares sold in the Tampa Bay Lightning, Minnesota Wild, New Jersey Devils, and Nashville Predators that helped inflate those values league-wide.
There appears to have been a historical undervaluing of NHL franchises, but now with the success of the Vegas Golden Knights and Seattle Kraken, the NHL looks to be a prime sports investment opportunity. Even Sportico’s estimations may be slightly lower than the actual market value.
The Calgary Flames’ value
The Flames have never been one of the league’s highest-valued franchises in terms of dollars, but its $1.14B valuation puts them 17th in the league overall which is an increase of two spots compared to last season. Teams that they are now valued more than include the New York Islanders, Seattle Kraken, Dallas Stars, and surprisingly the Pittsburgh Penguins.
Here’s a historical look at the Flames’ franchise value estimates from Sportico since 2021.
| Year | Value | League Rank |
|---|---|---|
| 2021 | $840M | 16th |
| 2022 | $870M | 19th |
| 2023 | $1.14B | 17th |
With hockey-related revenue improving, and the announcement of a new arena coming in the next few years, it’s safe to assume that the value of the Flames franchise is only going to continue to grow.
Further, Calgary’s naming rights sponsor is Scotiabank, which also happens to sponsor the most valuable franchise in the Toronto Maple Leafs. Among the seven Canadian teams, the Flames rank fifth in the list. Here is how the Canadian franchises stack up for 2023.
| Canadian Team | Value | League Rank |
|---|---|---|
| Toronto Maple Leafs | $2.65B | 1st |
| Montreal Canadiens | $2.27B | 3rd |
| Edmonton Oilers | $1.59B | 8th |
| Vancouver Canucks | $1.20B | 13th |
| Calgary Flames | $1.14B | 17th |
| Ottawa Senators | $950M | 27th |
| Winnipeg Jets | $925M | 28th |
The Flames’ future value
The team has struggled the past couple of seasons and while the valuation is higher, the Flames are already facing major attendance issues just one month into the 2023–24 season.
Perhaps this is the perfect time for the Flames majority owner, Murray Edwards, to capitalize on his initial investment and sell the team off. A boy can dream.
