Post by WpgJets2008 on Feb 19, 2009 11:08:42 GMT -5
'Potential investors' interested in buying team: reports
DAVID SHOALTS Globe and Mail February 18, 2009 at 10:04 PM EST
sports.theglobeandmail.com/servlet/story/RTGAM.20090218.wsptcoyotes19/GSStory/GlobeSportsHockey/home
Sources in the investment banking and hockey communities were scratching their heads yesterday over reports of an offer to buy the Phoenix Coyotes and the surfacing of other "potential investors."
TSN reported on its website that someone made an offer to buy the financially crippled NHL team. The report did not identify the potential buyer and said the offer would only lead to "dialogue and further negotiations."
The report also said there were two other "serious parties" interested in the team, which is expected to lose as much as $45-million (all currency U.S.) this season. They, too, were not identified.
A few hours later, Coyotes majority owner Jerry Moyes, who has refused comment on recent stories about the severe financial problems of his hockey team, issued a statement saying there were parties interested in the franchise. Moyes said he and minority owner and head coach Wayne Gretzky have "had discussions with potential investors interested in joining us in continuing the team's presence in Glendale."
When sources familiar with the Coyotes' situation were asked about yesterday's reports, all said they had heard nothing about any serious interest in the team.
"Who would make an offer on that team?" one source said, referring to the total losses of the Coyotes, said to be as much as $250-million since Moyes took control of them in 2001.
An investment banking source said the only way the team could be sold and successfully remain at Jobing.com Arena in Glendale was if the new owner made an offer conditional on putting up as little as $50-million and the City of Glendale agreed to heavily subsidize the team by rewriting its arena lease. At the same time, Moyes would have to agree to give up the team without receiving much on his original investment.
"The involvement of the city is crucial," the source said.
Such a deal might even allow Gretzky, who was given a minority share of the team as part of his five-year contract as coach that is worth as much as $40-million, to buy the team if he could find financial backing.
"I have met with Glendale city management, who expressed strong support for the team, and whose assistance would contribute to helping the Coyotes operate on a positive cash flow basis," Moyes said in his statement.
But even though Glendale is willing to subsidize at least some of the losses, it may not be able to afford to pay enough for anyone to take a chance on investing in the team. Its population is only 250,000 and an annual subsidy of $9-million, which is what the city of Nashville may wind up contributing to the Predators, for example, would be onerous.
~~~
My comment to the article:
--- With Open Arms! ---
Winnipeg is ready, willing and able to show how to right a wrong (as even Bettman alluded to in the past year)!
With the new MTS Centre, Winnipeg's hockey team can generate the revenues that the Winnipeg arena couldn't.
With Mark Chipman's True North group owning the rink free and clear of government intervention, all non hockey related revenues will also flow to the same entity. (Winnipeg Enterprises Corp. used to take most revenues like consessions and parking back to the city coffers at the old barn, none going to the team).
Mark Chipman has been on the CBC national news, Feb 6, 2008, answering Peter Mansbridge's questions surrounding the quiet, deep pockets of the ownership group that has come together.
And finally the NHL capped salaries allowing teams with strong fanbases to compete for players with most of the big markets. Revenue sharing now exists should the team even need it.
Check out www.ManitobaMythbusters.com if you don't believe me!
Oh and by the way, for your rude comments this past September Mr.Gretzky, you can stay behind in Phoenix. All we want is the team without its' baggage! Just give us back the last regular season puck you took, so that it can be used as the ceremonial first puck drop. Please and Thank you!
Chris
~~~
Editor's Notes:
After seeing the team in its' present state, who in their right mind would buy it to keep it there? Who would now like to become a partner of gretzky and Moyes to continue the ride to the abyss?
Let's read between the lines here: Moyes is trying to show more interest than is actually the case to drive the best bargain he has going to unload the team. That is was this means. Nothing more than hot air.
And its' pure dreaming that in this tight economy with many losing their jobs, in the area that was most heavily hit by the banking mortgage crisis, that Glendale would subsidize the team enough to keep it afloat when not enough people care about the team to boost its revenues in the first place. This is wishful thinking and a great way for the politicians to get thrown out at the next voter opportunity. And that's why it won't happen. Remember the joke: The Coyotes should also ask for a federal bailout? Well that's how bad things have gotten for the franchise!
Most non-HRR goes to the team now, so asking the city for a cash infusion makes little sense. The city is only out a few million each year if the rink remians in darkness without its main tenant. Other than that $4 to 5 million dollars, the city won't give much more.
It's a very short list for rich-enough owners that are interested in buying and relocating the team: Balsillie, Chipman and Brett Wilson may have enough cash to pay the team. Any noise for Les Alexander out of Houston, since he last tried to carpet-bag the Oilers?
It's also a very short list of places the team could move to even temporarily while waiting either for a new rink to be built (K-W), an old one to be renovated (Hamilton, Quebec City, Seattle) or a new rink waiting to take them (Winnipeg, KC, Houston, Portland).
Since it will be a very short time to transfer the team for play this September (with a schedule drawn up in summer), I would think those last 4 cities would be on the inside track. But I know full well, that means little as the Sens played in a barn at the end of Frank Clair stadium until the Palladium was built, even with almost two years of expansion notice given.
Chris
DAVID SHOALTS Globe and Mail February 18, 2009 at 10:04 PM EST
sports.theglobeandmail.com/servlet/story/RTGAM.20090218.wsptcoyotes19/GSStory/GlobeSportsHockey/home
Sources in the investment banking and hockey communities were scratching their heads yesterday over reports of an offer to buy the Phoenix Coyotes and the surfacing of other "potential investors."
TSN reported on its website that someone made an offer to buy the financially crippled NHL team. The report did not identify the potential buyer and said the offer would only lead to "dialogue and further negotiations."
The report also said there were two other "serious parties" interested in the team, which is expected to lose as much as $45-million (all currency U.S.) this season. They, too, were not identified.
A few hours later, Coyotes majority owner Jerry Moyes, who has refused comment on recent stories about the severe financial problems of his hockey team, issued a statement saying there were parties interested in the franchise. Moyes said he and minority owner and head coach Wayne Gretzky have "had discussions with potential investors interested in joining us in continuing the team's presence in Glendale."
When sources familiar with the Coyotes' situation were asked about yesterday's reports, all said they had heard nothing about any serious interest in the team.
"Who would make an offer on that team?" one source said, referring to the total losses of the Coyotes, said to be as much as $250-million since Moyes took control of them in 2001.
An investment banking source said the only way the team could be sold and successfully remain at Jobing.com Arena in Glendale was if the new owner made an offer conditional on putting up as little as $50-million and the City of Glendale agreed to heavily subsidize the team by rewriting its arena lease. At the same time, Moyes would have to agree to give up the team without receiving much on his original investment.
"The involvement of the city is crucial," the source said.
Such a deal might even allow Gretzky, who was given a minority share of the team as part of his five-year contract as coach that is worth as much as $40-million, to buy the team if he could find financial backing.
"I have met with Glendale city management, who expressed strong support for the team, and whose assistance would contribute to helping the Coyotes operate on a positive cash flow basis," Moyes said in his statement.
But even though Glendale is willing to subsidize at least some of the losses, it may not be able to afford to pay enough for anyone to take a chance on investing in the team. Its population is only 250,000 and an annual subsidy of $9-million, which is what the city of Nashville may wind up contributing to the Predators, for example, would be onerous.
~~~
My comment to the article:
--- With Open Arms! ---
Winnipeg is ready, willing and able to show how to right a wrong (as even Bettman alluded to in the past year)!
With the new MTS Centre, Winnipeg's hockey team can generate the revenues that the Winnipeg arena couldn't.
With Mark Chipman's True North group owning the rink free and clear of government intervention, all non hockey related revenues will also flow to the same entity. (Winnipeg Enterprises Corp. used to take most revenues like consessions and parking back to the city coffers at the old barn, none going to the team).
Mark Chipman has been on the CBC national news, Feb 6, 2008, answering Peter Mansbridge's questions surrounding the quiet, deep pockets of the ownership group that has come together.
And finally the NHL capped salaries allowing teams with strong fanbases to compete for players with most of the big markets. Revenue sharing now exists should the team even need it.
Check out www.ManitobaMythbusters.com if you don't believe me!
Oh and by the way, for your rude comments this past September Mr.Gretzky, you can stay behind in Phoenix. All we want is the team without its' baggage! Just give us back the last regular season puck you took, so that it can be used as the ceremonial first puck drop. Please and Thank you!
Chris
~~~
Editor's Notes:
After seeing the team in its' present state, who in their right mind would buy it to keep it there? Who would now like to become a partner of gretzky and Moyes to continue the ride to the abyss?
Let's read between the lines here: Moyes is trying to show more interest than is actually the case to drive the best bargain he has going to unload the team. That is was this means. Nothing more than hot air.
And its' pure dreaming that in this tight economy with many losing their jobs, in the area that was most heavily hit by the banking mortgage crisis, that Glendale would subsidize the team enough to keep it afloat when not enough people care about the team to boost its revenues in the first place. This is wishful thinking and a great way for the politicians to get thrown out at the next voter opportunity. And that's why it won't happen. Remember the joke: The Coyotes should also ask for a federal bailout? Well that's how bad things have gotten for the franchise!
Most non-HRR goes to the team now, so asking the city for a cash infusion makes little sense. The city is only out a few million each year if the rink remians in darkness without its main tenant. Other than that $4 to 5 million dollars, the city won't give much more.
It's a very short list for rich-enough owners that are interested in buying and relocating the team: Balsillie, Chipman and Brett Wilson may have enough cash to pay the team. Any noise for Les Alexander out of Houston, since he last tried to carpet-bag the Oilers?
It's also a very short list of places the team could move to even temporarily while waiting either for a new rink to be built (K-W), an old one to be renovated (Hamilton, Quebec City, Seattle) or a new rink waiting to take them (Winnipeg, KC, Houston, Portland).
Since it will be a very short time to transfer the team for play this September (with a schedule drawn up in summer), I would think those last 4 cities would be on the inside track. But I know full well, that means little as the Sens played in a barn at the end of Frank Clair stadium until the Palladium was built, even with almost two years of expansion notice given.
Chris