In 2011, Tom Gaglardi purchased the Dallas Stars for $240 million. The franchise had been in bankruptcy and run by the NHL after Tom Hicks and his sports investments went belly-up.
Today, Gaglardi owns a team that is valued by Forbes at $500 million. They now rank 12th in the league, just behind the Pittsburgh Penguins ($570 million).
The Stars saw one of the largest year-over-year increases in franchise value, presumably bolstered by the playoff appearance last spring. While the franchise value ranks 12th in the league, Dallas is a top 10 team in terms of both operating income and revenue.
The $20.9 million in operating income is the highest the Stars have experienced in the past 10 years, and a vast turnaround from the negative operating income the Stars had in 2011, just a short five years ago.
While the Stars had $144 million in revenue last season, only a fraction of it has come from gate receipts. The Stars rank 18th in terms of gate receipts, which indicates that they still have one of the cheaper average tickets in the league.
Dallas’ franchise value is boosted by the American Airlines Center, which is one of the busiest arenas in the country. The facility draws additional revenues and sponsorship opportunities for the Stars as part owners of the arena.
The market of Dallas also helps the franchise value, as the Stars are able to tap into one of the largest population bases in the country as well as a very healthy corporate base to sell sponsorships and advertising.
Gaglardi has completely changed the culture of the Dallas Stars since assuming ownership five years ago. A new front office and the installation of a winning culture combined with competitive teams fielded on-ice has illustrated Gaglardi’s belief that if you are trying to win, the off-ice performance takes care of itself. The increased value in the Stars franchise is just another reflection of the turnaround Gaglardi has orchestrated in Dallas.