Four years ago, fashion super company Supreme was sold for $2 billion. Two years ago, a Californian man won a $2 billion lottery (but he took the lump sum, which came in just under $1 billion). With $2 billion, you could buy Buckingham Palace and still have enough to buy the White House.
The New Jersey Devils are worth $2 billion. That seems like an insane amount of money. Ten years ago, former Microsoft executive Steve Ballmer bought the Los Angeles Clippers for $2 billion. It was considered a shocking development, and many point to this as the start of the insane market valuations for sports teams. Now, it appears that the Devils have hit that milestone according to recent analysis posted on CNBC.
That analysis claims the Devils are the 11th most valuable franchise. They are right behind the Detroit Red Wings and ahead of teams like the Vancouver Canucks, Dallas Stars, Tampa Bay Lightning, and Pittsburgh Penguins.
The New Jersey Devils are worth $2 billion according to a new source.
This just seems preposterous. The Penguins were just sold in 2021 for $900 million, but now they are worth $600 million more? We know there was a pandemic bump, but this seems excessive.
The question becomes if a buyer or buyers would be willing to pony up $2 billion to buy Jersey’s team. Honestly, it sounds ridiculous, but it might not be. CNBC says the Devils are operating with $267 million in revenue and more than $50 million in yearly EBITDA (earnings before interest, taxes, depreciation, and amortization). On top of that, there is the future marketability of the Hughes brothers, a roster that seems to finally be on the path to future contention and constant playoff revenue, and the fact they are finally taking advantage of the tools of playing outside New York City gives it a chance to make even more revenue.
Forbes is often the leader in these rankings, and the Devils were ranked at $1.45 billion last year. Did something major change in the NHL to see a 33% increase in valuation? There were no major TV deals or changes in the collective bargaining agreement. The regional sports deals are still in flux, although it sounds like the Devils are sticking with MSG Network.
This valuation seems insane, and it likely is. If the Devils were legitimately put on the market, they might go for half of this evaluation.