On behalf of Kirk Montoute Dawson LLP posted in High Asset Divorce on Sunday, November 24, 2013.
A Canadian National Hockey League team was recently part of a divorce settlement. The co-owner of the Canucks, one of the most profitable teams in the league, was in divorce settlement talks with his ex-wife, and the value of the team and Rogers Arena became part of the settlement agreement. According to the judge, the team and the arena were determined to have a value of $740 million, partially based on the real estate value of the arena property.
This valuation would indicate that the value of the team has tripled in the last eight years; in 2005, the team was bought by the Aquilini Investment Group for $207 million. Other NHL team valuations may be much lower. Part of the reason for the Vancouver team’s high valuation, in addition to the real estate value, is the fact that the team does not have to share the local market with any other professional team.
Generally, the value of any sports team is primarily based on the amount of revenue that it can generate. Teams that share the local area with other sports teams, such as basketball or baseball, may bring in less profits. Profits could also be reduced if the property itself is shared with other teams.
Most Canadian residents do not have assets that approach the value of a professional sports team and a large real estate holding. When a resident is divorcing and there are businesses, real estate, retirement accounts, investments, art works and other assets that need to be valued, legal assistance should be considered for a high-asset divorce in order to establish values for possessions that do not have a readily determined market value.
Source: Forbes, “Vancouver Canucks Valued At $740 Million For Team Owner’s Divorce“, Mike Ozanian, November 12, 2013
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