Second Stanley Cup For Kings Would Make AEG Sale More Lucrative For Anschutz

May 18 2014, 8:22am CDT | by

Two years ago the Los Angeles Kings captured their first Stanley Cup. Soon after, Philip Anschutz put AEG, the sports and entertainment company that owns 90% of the Kings, up for sale.

Anschutz was looking for $8 billion for AEG at the time. The valuation seemed a bit rich, but plausible, as we discussed on the YES Network’s three-time Emmy Award winning show Forbes SportsMoney.

The sale of AEG never happened in part because while Anschutz was having back surgery he heard that AEG CEO Tim Leiweke was trying to influence who bought the company so that he could keep running it, rather than simply sell AEG to the buyer who would offer the best deal for Anschutz.

Leiweke departed AEG soon after Anschutz pulled AEG off the block and he now now runs Maple Leaf Sports & Entertainment, which owns Toronto’s Maple Leafs and Raptors. Should Anschutz decide to sell AEG he would get considerably more than he was hoping for two years ago.

Why? Not only have sports teams valuations increased across the board, but the Kings in particular are much more valuable. The team is solidified itself the past few years as one of the best in hockey and are going to begin play in the Western Conference Finals this afternoon against the Chicago Blackhawks.

Each home playoff game generates about $2 million in profit for an NHL team from tickets and suite revenue. Plus, Anschutz controls the Staples Center, so he gets more from advertising and concessions for each playoff game. And anyone looking to buy AEG understands that the goodwill built up from this year’s Stanley Cup. The Kings could be worth more more than $550 million after this season.

Even the Los Angeles Lakers, who missed the NBA’s postseason this year, are up considerably in value the past two years. If Donald Sterling is forced to sell the Los Angeles Clippers he will get at least $1 billion. If the Clippers are worth that much, the Lakers, which Anschutz owns 27%, have to be worth close to $2  billion.

Sometimes the best deals are the ones that never happen. Two years ago that was the case for Anschutz.

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Saarc leaders to meet amid hopes of South Asian integration (Curtain Raiser)
Kathmandu, Nov 25 (IANS) The 18th Saarc Summit begins here Wednesday with focus on deeper integration among the eight South Asian neighbours, amid high hopes that the leaders of India and Pakistan will meet to break their diplomatic ice.
 
 
Facebook launches new chatting application
Madrid, Nov 25 (IANS/EFE) Facebook launched Tuesday a new chatting application worldwide called "Rooms" which simulates traditional internet chatting rooms, enabling users to chat with strangers on specific topics.
 
 
Mali confirms two new Ebola cases
Bamako, Nov 25 (IANS) Mali has confirmed two new Ebola cases after the death of five people due to the virus, the country's public health ministry has said.
 
 
Toddlers remember good times for life
New York, Nov 25 (IANS) According to researchers from the Utah-based Brigham Young University, babies are more likely to remember an incident if there is a positive emotion or affect that accompanies it.
 
 
 

Latest from the Network

Over a dozen killed in Nigeria twin bombings
Abuja, Nov 25 (IANS) Two blasts Tuesday rocked a busy market in Maiduguri, capital of Nigeria's northeastern state of Borno and epicentre of Boko Haram's violence in the West African country, killing more than a dozen...
Read more on Politics Balla
 
Ready for talks but ball in India's court: Sharif
Kathmandu, Nov 25 (IANS) Pakistan Prime Minister Nawaz Sharif Tuesday said Islamabad is ready to hold talks with India but "the ball is now in India's court", the Geo News reported. Speaking in the Nepal's capital...
Read more on Politics Balla
 
Hope Saarc helps reduce tensions with India: Pakistan minister
Islamabad, Nov 25 (IANS) Pakistan hopes that Prime Minister Nawaz Sharif's participation in the Saarc Summit in Nepal will help reduce Islamabad-New Delhi tensions given that US policies in the region have failed,...
Read more on Politics Balla
 
Modi hands over Dhruv chopper to Nepal
Kathmandu, Nov 25 (IANS) Prime Minister Narendra Modi Tuesday handed over the indigenous Advance Light Helicopter (ALH) Dhruv to his Nepalese counterpart Sushil Koirala here for use by the Nepal Army. Built by the...
Read more on Politics Balla
 
Vanessa Hudgens gets restraining order against stalker
Los Angeles, Nov 25 (IANS) Actress Vanessa Hudgens has got a restraining order against her alleged stalker Junior Kabongo. Hudgens went to court after Kabongo came here from Africa to meet her after sending her a...
Read more on Celebrity Balla
 
Modi flags off Kathmandu-Delhi bus service
Kathmandu, Nov 25 (IANS) Indian Prime Minister Narendra Modi Tuesday flagged off a Kathmandu-Delhi bus service here. A bus bound for Kathmandu took off from the Indian capital at the same time. Modi, here to attend...
Read more on Politics Balla
 
Pune FC maintain hot form in King's Cup
Thimpu, Nov 25 (IANS) Pune FC finished their King's Cup group engagements in style, winning 2-0 against Bangladesh's Abahani Limited at the Changlimithang Stadium here Tuesday, to collect a maximum 12 points from four...
Read more on Sport Balla
 
Frame constitution early, with consensus: Modi urges Nepal
Kathmandu, Nov 25 (IANS) Prime Minister Narendra Modi Tuesday urged Nepal to frame its much-awaited constitution early and on the basis of consensus. Addressing an event here to hand over to Nepal a 200-bed trauma...
Read more on Politics Balla
 
Saudi Arabia to issue five-year residency permits
Dubai, Nov 25 (IANS) The validity of residency permits of foreign workers in Saudi Arabia is likely to be extended to five years, a media report said Tuesday. The directorate general of passports is giving final...
Read more on Politics Balla
 
FC Goa aim to maintain momentum in ISL
Margao, Nov 25 (IANS) Hosts FC Goa will aim to maintain their upward swing and jump to the third spot when they take on Kerala Blasters FC in an 11th round match of the Indian Super League (ISL) at the Jawaharlal Nehru...
Read more on Sport Balla