Breaking news this afternoon as it appears that the Calgary Flames ownership group is actively exploring the possibility of selling a minority stake in the franchise, up to 30%.
This report comes from David Pagnotta of The Fourth Period, and while this groups reporting has been hit and miss in the past, this should be taken seriously.
HRR is booming
With the relocation of the Arizona Coyotes to Utah, and big increases from new TV deals, advertising deals, a booming economy, and the conclusion of escrow debt owed from the covid pandemic, HRR, or hockey related revenue, is at an all-time high.
Recent valuations of NHL franchises on Forbes’ list are higher than ever before, which led to a much higher price tag when the Ottawa Senators were sold to Michael Andlauer in 2023, and Alex Meruelo’s sale of the Coyotes this year to facilitate the move to Utah.
If the past five years have shown us anything, it’s that nothing is guaranteed and good times shouldn’t be taken for granted.
The report says that one NHL club is already in the process of selling 15% of their franchise, though the team is not named. As well, five other teams, including the Flames are pursing a similar option.
Update from Francis
On May 13, Eric Francis provided an update with a direct quote from Flames owner Murray Edwards, putting a damper on the report from Pagnotta.
Details on a potential minority sale of the Flames
The Calgary Flames’ valuation jumped by 31% to $1.14B according to Sportico this November. At their highest value of all time, it makes sense that an aging ownership group would try to cash out at least a portion of one of their best investments.
The report indicates the Flames are considering selling anywhere between 15% and 30% of the club. At the above valuation, this would amount to between $171M and $342M.
It’s a massive chunk of change, but there are sure to be interested parties out there.
