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NHL Gets A ‘Near Investment Grade’

from Tom Van Riper of Forbes,

How well is the sports industry navigating the turbulent economy? Pretty well, according to Standard & Poor’s. The biggest threat on the horizon: the new collective bargaining agreements that must be negotiated in all four major North American sports leagues over the next couple of years.

At this year’s Sports Executive Leadership Conference at the posh Broadmoor resort in Colorado Springs, attendees were chewing over the latest risk assessment and outlook note for the industry by S&P managing director John Bilardello. His take: Despite economic woes that have curtailed sponsorships and knocked ticket prices down for many clubs, strong league oversight through salary caps, revenue sharing and luxury taxes has played a big role in controlling costs (i.e. payrolls) and limiting damage to weaker franchises….

S&P’s debt ratings for the NFL, NBA and Major League Baseball remain investment grade, with the NHL “near investment grade.”

read on if you are interested in the business side of sports…

Filed in: NHL Talk, NHL Business of Hockey, | KK Hockey | Permalink


Lindas1st's avatar

...strong league oversight through salary caps, revenue sharing and luxury taxes…


Posted by Lindas1st from New England on 07/22/10 at 06:33 PM ET

TheFreak's avatar

@ Lindas1st

You nailed it.

Posted by TheFreak on 07/22/10 at 09:51 PM ET

Primis's avatar

The fact that in another year and change the NHL may be the only sport actually playing would certainly affect this in a big way.

Posted by Primis on 07/22/10 at 10:03 PM ET

UMFan's avatar

Its a non-issue really. Its like giving a rating for the retail or banking industry. Its nice, but basically irrevalent IMO. S&P is basically rating the market risk of the sport, which I agree. When you factor in some of the stop gaps by the league designed to keep the group as a whole from financial ruin, the bond rating should be close to investment grade. However, in sports its the unsystematic risk or the team specific rating that you have to worry about as a bond holder. Specifically, Toronto has a higher credit rating than say a team from Florida or California because the team specific risk is night and day.

Posted by UMFan from Denver, Colorado on 07/22/10 at 11:39 PM ET

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Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.

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