How Did Sharks Go Up 40% in Value?

Somehow, the San Jose Sharks have increased 40 percent in value.

That’s according to Sportico, who released their annual NHL franchise valuations last week.

The Sharks went from a $755 million valuation and 26th in the league last year to $1.06 billion and 22nd this season.

How does a franchise that has won just 24 of its last 98 games gain $251 million in value?

First, thank the Ottawa Senators. The Senators just sold for $950 million to Michael Andlauer, raising the value of basically every team in the NHL. Last year, Sportico tabbed the Sens as worth “just” $655 million.

Second, thank the market.

Kurt Badenhausen, who put together these rankings, explained on Sporticast 295, “We bumped them up as a reflection of just how much money is in that market.

“The Bay Area, New York, Chicago, Boston, these areas are swimming in so much money.”

In theory, that makes the San Jose Sharks’ value, to some degree, immune to their won-loss record.

“A historically bad year in a market like that, that has so much wealth in it should not have a long-term detriment to the value,” Badenhausen opined.

The Sharks aren’t bulletproof, mind you.

“Two, three, four-year run like [this], revenues fall off a cliff, then you have to rebuild that fanbase, that’s where you really run into problems,” he said.

But if only because of location, location, location, the San Jose Sharks should always be an attractive franchise to own.

“A new owner would be chomping at the bit because new owners always think they can fix things,” Baudenhausen suggested.