This is a response to Jasper’s blog post about what it takes for a sports franchise to sell.
In his blog post, Jasper concluded that it is essential for sports franchises to win games to be financially successful. I have one thing to say to that: The Toronto Maple Leafs. Oh, and another: The Houston Astros. The Maple Leafs are the most profitable team in the National
Hockey League, yet they’ve consistently struggled to make the playoffs for the past decade. They are financially successful because of a number of different other factors such the population size of GTA, the history of the sport in Toronto, and the high income level of the city. The Houston Astros are financially successful for completely different reasons relating more to management. Despite finishing with the 2nd worst record of all time in Major League Baseball, they brought in the highest revenue. A large portion of their revenue comes from a local TV rights deal they signed with Comcast, but they are also economically successful by maintaining the lowest payroll in the league. Although success on the field is helpful for increasing revenue, it is not required for a franchise to be successful off the field.
References:
http://www.sportsnet.ca/hockey/nhl/forbes-nhl/