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Here's why celebrities are interested in buying a Canadian hockey team
The Ottawa Senators have garnered a lot of attention over the past few months, particularly from celebrities.
The NHL team went up for sale after the passing of its owner Eugene Melnyk in March 2022. Bids closed
Rapper and entrepreneur Snoop Dogg and singer The Weeknd are reportedly involved in bids for the Sens, with actor Ryan Reynolds and the real estate company the Remington Group pulling out.
"It might be hard to fathom for a lot of people but at the end of the day, what we have to remember is a professional sport, whether we're talking about men's or women's, it is a cartel system," Michael Naraine, researcher of sports management at Brock University, told CTV's Your Morning on Thursday.
Naraine says the system offers owners a good return on their investment over time.
"If you look at the returns over time, we're talking double digits, sometimes even triple digits in percentage points," he said. "Eugene Melnyk purchased the team, adjusted for inflation, for under US$100 million, and now this team could potentially sell for US$1 billion. That is a great return on your investment鈥 incredible."
Pushing a name people recognize is also part of a tactic, Naraine said, like in the case of Reynolds taking over Welsh soccer team Wrexham AFC, which recently saw large success.
"If you serve as the face of the franchise, (celebrities) can galvanize the fan base locally, but also globally," Naraine said.
To hear the full interview click the link at the top of this article.
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