On the heels of THW’s recent discussion of the burgeoning financial health of the Nashville Predators comes Forbes’s 2011 NHL Team Values estimates. The Music City’s pro hockey franchise saw a 10% jump in value over last year’s estimates, ranking them 25th on the list of 30 NHL franchises. The business-focused outlet estimates the Preds value to be $163 million, with $82 million in revenue and a negative operating income of $7.5 million (all figures in USD).
That operating loss has been offset in recent years by a $7.4 million subsidy that Predators Holdings, LLC receives from the Metro government to manage arena operations year-round, including other sporting events, concerts, and other forms of entertainment. Funding comes from a modest hotel and tourism tax passed by the city council in 2008, pursuant to a renegotiated lease agreement when the current owners took the helm from current Minnesota Wild owner Craig Leipold. Predators Holdings, LLC are also due to receive funds from the State of Tennessee to offset losses as the result of rescheduling premiere events at below-market rates to host events like country music legend Garth Brooks’s series of benefit concerts for flood relief victims in Middle Tennessee (stick tap: Dirk Hoag).
While the gain in valuation should probably give Fans of the Fang something to smile about, Forbes’s estimates should ultimately be taken with a grain of salt. The business-focused outlet does not receive raw data or any other financial information from NHL franchises for the purpose of its annual review, and they do not make the methodology for producing estimates available to the general public. For insights into Nashville’s increase in value, see our interview with Chris Parker, Executive Vice President and Chief Marketing Officer for the Nashville Predators.
The Nashville Predators declined to comment on Forbes’s valuation estimates.