Tampa Bay Lightning to sell minority stake at NHL record $1.4 billion valuation

That didn’t last long.

The Tampa Bay Lightning are reportedly set to sell a minority slice of the franchise to private equity group Arctos Sports Partners at an NHL record valuation of $1.4 billion, according to Sportico.

The NHL’s previous high-water mark for a valuation in a transaction lasted just four days, since Michael Andlauer entered into an agreement to purchase the Ottawa Senators at a reported valuation of $950 million (all figures USD). Previously, majority shares of the Pittsburgh Penguins and Nashville Predators reportedly sold in the $900 million range.

The new $1.4 billion price tag for the entire Lightning franchise is notable for the trickle down effect on NHL business, which is booming. For one, the Lightning were most recently pegged as the 15th-most valuable NHL franchise by Sportico in Nov. 2022 at $910 million, representing a significant premium off that figure.

Next, Andlauer is a minority partner and reported 20 percent stakeholder in the Montreal Canadiens, a share he must now liquidate ahead of closing and formal NHL Board of Governors approval to get the keys to the Senators. The Original Six Canadiens franchise, seen as the third-most valuable in the league by both Sportico and Forbes behind only the Toronto Maple Leafs and New York Rangers, was most recently appraised at $1.7 billion by Sportico.

If the Lightning were valued at $910 million and are putting pen to paper at a $1.4 billion valuation, and the Canadiens were worth $1.7 billion according to the same formula, that means the Habs would theoretically be worth in the $3 billion range. It’s more than just math; the Lightning are still a relatively small-market NHL team, the 24-time Stanley Cup champion Canadiens are shrouded in mystique and have one of the largest and most rabid fanbases in North America.

So, let’s ballpark that the Canadiens are then worth $3 billion. For perspective: that would make Andlauer’s 20 percent share, if that allocation is accurate, worth almost two-thirds ($600 million) of the Sens’ entire purchase price ($950 million).

Finally, the incredible work by Jeff Vinik and the Lightning should be highlighted, as he helped turn one of the NHL’s moribund franchises and turned them into Lord Stanley’s silver standard – as in recent back-to-back Stanley Cup champions. Aside from the on-ice success, Vinik’s real estate play surrounding the arena in downtown Tampa has been a boon, just like the Lightning have been as an investment.

Vinik purchased the Lightning in 2010 for a reported $170 million. Sure, there were cash calls in the early years and investment into the franchise and infrastructure. But if you’re scoring at home, Vinik has now essentially cashed out the entirety of his original investment by selling more than 20 percent of the franchise at the reported $1.4 billion. He’s put that back in his pocket – and he’s letting the last 70 percent or so that he owns of the team ride on house money.

It’s yet another reminder that, as Arctos Sports Partners has proven, there are few better places on the planet in recent years to park your money than owning a professional sports team.