What is the value of the Utah Hockey Club? Desert News

Earlier this year, before Ashley and Ryan Smith took over the team, the Arizona Coyotes had the lowest valuation among the NHL's 32 teams, somewhere around $500 million.

The struggling franchise played on a college campus after losing its lease on an arena in Glendale and several attempts to secure public financing for a new venue failed. In an unprecedented deal brokered by the league, the Smiths stepped in to purchase the team and move it to Salt Lake City. Sale price: $1.2 billion.

Now, almost two months after the first season, Utah HC is no longer the least valuable team in the league. CNBC's Official 2024 NHL Ratings Utah ranks 28th at $1.2 billion, exactly what the Smiths paid in April. CNBC calculates the team's revenue at $119 million with an EBITDA, an abbreviation for earnings before interest, taxes, depreciation and amortization, of negative $6.3 million.

Utah HC ranks just below the Carolina Hurricanes, who have won one Stanley Cup since joining the league in 1997, and just ahead of the Ottawa Senators, a team that has not won a championship in its 31-year history.

Which NHL is worth the most?

According to CNBC, the Toronto Maple Leafs have the highest valuation in the league at $4 billion, while the Columbus Blue Jackets are the lowest at $1 billion.

The average NHL team is worth $1.92 billion, per CNBC, which says the league commands more respect when it comes to team values. According to CNBC calculations, the average team posted $45 million in EBITDA on $223 million in revenue for the 2023-2024 season.

The NHL reported revenue of $6.3 billion for the 2023-2024 season, up 8.6% from the year before. The league also raked in a record national sponsorship revenue of $250 million last season, along with regular season revenue of $2.4 billion, the NHL said.

That growth, combined with richer media deals, is contributing to a better outcome for professional hockey, according to CNBC. Steady revenue growth combined with a hard salary cap and a league-wide revenue sharing system all but guarantee the profitability of the league's 32 teams.

That bodes well for Utah HC.

Utah HC record sales of jerseys

While the team has had its ups and downs on the ice nearly two months into its inaugural season, fan engagement has been off the charts since the team arrived in April and only accelerated with the first puck drop last month. Demand for season tickets exceeded the number of available seats and the Delta Center exceeds the official capacity of 11,131 for hockey per night, while the team sells up to 5,000 limited-view seats.

The franchise has no permanent name or mascot. Blizzard, Mammoth, Outlaws, Venom, Yeti and Utah Hockey Club are in the running, but that hasn't stopped Utahns from loading up on team gear.

Fans lined up at the team store when Utah HC jerseys went on sale for the first time on Nov. 15, setting a sales record for Delta Center one-day sporting events. It beat the previous record set by the first game against the Chicago Blackhawks on October 8 for merchandise other than the jersey by 48%. The NHL's online store also sold out of Utah HC jerseys within 24 hours of putting them on sale. Exact sales figures have not been disclosed.

Utah also set an NHL record. Among regular season home arena games, Utah had the best single-game net merchandise sales total, beating the previous best sales total by 29%, according to NHL.com. Just one regular season and Stanley Cup Playoffs game in a home arena has produced a higher net merchandise sales total for a single game: the Golden Knights earn victory in Game 5 of the 2023 Stanley Cup Final at T-Mobile Arena on June 23, 2023.

Fans also bought a record amount of beer before an NHL or NBA game at the 33-year-old Delta Center, with team owner Smith Entertainment Group reporting $150,000 in sales during Utah's 5-2 victory over the Blackhawks on opening night.