A Seattle ownership group has been authorized to file an application for an NHL expansion team that would begin play in the 2020-21 season, NHL Commissioner Gary Bettman said Thursday.
The cost of the team would be $650 million, and Commissioner Bettman said the NHL is looking at only Seattle for possible expansion…
“That doesn’t mean we have granted an expansion team,” Commissioner Bettman said following the Board of Governors meeting. “We have agreed as a league to take and consider an expansion application and to let them run in the next few months a season ticket drive.”
So basically, “show up with a $650 million check and some season-ticket pledges, and you’re in.” If anyone thinks that the Seattle ownership group — which includes both former Philip Anschutz lieutenant Tim Leiweke and Hollywood mogul Jerry Bruckheimer — can’t muster that, please raise your hand.
The only surprise here is that the NHL didn’t wait to use Seattle as leverage to get arenas for all the teams seeking them — hell, Calgary was already getting ready to freak out that this might cost them the Flames if they didn’t build a new arena, but now that’s off the table. Presumably the lure of $650 million in quick cash — up from the $500 million that the Las Vegas Golden Knights owners paid just last year, NHL deputy commissioner Bill Daly explained, because of market size differences (sure, okay) and “inflation” (um, in one year, seriously?) — outweighed the benefits of having a great move threat, especially when there’s always Houston for that.
Is an NHL franchise in Seattle really worth $650 million? The average team value, according to Forbes, is $594 million, though the magazine has a tendency to underestimate sale prices (though that could also just be a sign that team owners have a tendency to overpay for teams). That means Bruckheimer & Co. could presumably pick up a low-value franchise for a lot less than that and move it to Seattle, but by signaling that it’s expansion or nothing, the league cuts off that option and means the Seattle group has to meet its asking price if it wants an anchor sports tenant for its new arena.
Really, the only surprise here is that the NHL didn’t ask for $1 billion, because why not? Unless you think that sports league operators have any shame, which, nah, can’t be that.