Post by wagner3 on Apr 3, 2009 23:20:56 GMT -5
looks like both Gillette, the American owner of the Habs and Hicks, the owner of the Stars, the joint owners of Liverpool FC, are looking to sell off part of their respective NHL franchises due to financial troubles...i.e., high levels of debt...there are only so many people with the money and interest in obtaining a stake in an NHL franchise, so this would appear to be good news assuming Chipman has a viable ownership group to take advantage of any opportunies that could arise down the road...btw, i am not suggesting the stars would be relocated...just that the more teams that go on sale the better the dynamics...
Stars owner in financial trouble
DAVID SHOALTS
From Saturday's Globe and Mail
E-mail David Shoalts | Read Bio | Latest Columns
April 3, 2009 at 11:14 PM EDT
The Dallas Stars, once the success story of the NHL's sunbelt franchises, shocked the hockey world Friday when they hit the same financial turbulence as the Phoenix Coyotes.
Even though Stars owner Tom Hicks went into default on $525-million (all currency U.S.) in loans, the NHL claims it is not worried about the future of the team. Hicks said there is no chance his sports teams — the Stars and baseball's Texas Rangers — will be taken over by creditors.
"We have no concerns about the Stars' ability to carry on," Bill Daly, the NHL's deputy commissioner, said in an e-mail.
A financial website, FINalternatives.com, reported yesterday that Hicks Sports Group defaulted on three loans. The company failed to make interest payments on a $350-million bank term loan, a $100-million second-lien loan and a $75-million revolving credit facility.
Hicks told a Dallas website, Dmagazine.com, that he is trying to renegotiate the interest terms on his loans, which involve 40 banks.
"We just would like the banks to be reasonable and hope they will go along with our proposal," Hicks said. "We're optimistic that a satisfactory resolution will come together in the next couple of weeks with our lenders' co-operation."
Hicks had said this week he is looking to sell as much as 46 per cent of his 95-per-cent interest in Hicks Sports Group.
He also owns the Liverpool Football Club of the English Premier League in a 50-50 partnership with Montreal Canadiens owner George Gillett, but that is held separately from Hicks Sports Group. Gillett is also in financial difficulty and exploring the possibility of selling the Canadiens and his share of the soccer team.
Hicks could not be reached for comment, but he told the Fort Worth Star-Telegram he will continue to pay for the operations of both the Stars and the Rangers.
"There is no possibility of banks owning the teams," Hicks said in an e-mail. "I am working closely with both leagues to find quality partners that share my long-term vision of building these two great franchises. I will continue to fund the teams' operations. I am the largest creditor to [Hicks Sports Group] and need 51 per cent of the banks to agree with my plan."
Daly said the NHL is not helping Hicks find new investors for the Stars.
FINalternatives.com quoted a source as saying Hicks's loans are partially secured by the Stars and Rangers but not the soccer team or his personal assets.
While NHL commissioner Gary Bettman has maintained the league is financially healthy despite the recession and much other evidence to the contrary, news that Hicks is in trouble was unexpected.
After he bought the Stars from Norman Green in December of 1995, the team embarked on a run of success that culminated in a Stanley Cup championship in 1999. The team regularly played in front of sold-out houses at Reunion Arena and the new American Airlines Center when it opened at the start of the 2001-02 season.
But the Stars' playoff performances declined in recent seasons and so did their attendance. They did make the Western Conference final last season, but they will likely miss the playoffs this season.
sports.theglobeandmail.com/servlet/story/RTGAM.20090403.wspt-hick-03/GSStory/GlobeSportsHockey/home
Stars owner in financial trouble
DAVID SHOALTS
From Saturday's Globe and Mail
E-mail David Shoalts | Read Bio | Latest Columns
April 3, 2009 at 11:14 PM EDT
The Dallas Stars, once the success story of the NHL's sunbelt franchises, shocked the hockey world Friday when they hit the same financial turbulence as the Phoenix Coyotes.
Even though Stars owner Tom Hicks went into default on $525-million (all currency U.S.) in loans, the NHL claims it is not worried about the future of the team. Hicks said there is no chance his sports teams — the Stars and baseball's Texas Rangers — will be taken over by creditors.
"We have no concerns about the Stars' ability to carry on," Bill Daly, the NHL's deputy commissioner, said in an e-mail.
A financial website, FINalternatives.com, reported yesterday that Hicks Sports Group defaulted on three loans. The company failed to make interest payments on a $350-million bank term loan, a $100-million second-lien loan and a $75-million revolving credit facility.
Hicks told a Dallas website, Dmagazine.com, that he is trying to renegotiate the interest terms on his loans, which involve 40 banks.
"We just would like the banks to be reasonable and hope they will go along with our proposal," Hicks said. "We're optimistic that a satisfactory resolution will come together in the next couple of weeks with our lenders' co-operation."
Hicks had said this week he is looking to sell as much as 46 per cent of his 95-per-cent interest in Hicks Sports Group.
He also owns the Liverpool Football Club of the English Premier League in a 50-50 partnership with Montreal Canadiens owner George Gillett, but that is held separately from Hicks Sports Group. Gillett is also in financial difficulty and exploring the possibility of selling the Canadiens and his share of the soccer team.
Hicks could not be reached for comment, but he told the Fort Worth Star-Telegram he will continue to pay for the operations of both the Stars and the Rangers.
"There is no possibility of banks owning the teams," Hicks said in an e-mail. "I am working closely with both leagues to find quality partners that share my long-term vision of building these two great franchises. I will continue to fund the teams' operations. I am the largest creditor to [Hicks Sports Group] and need 51 per cent of the banks to agree with my plan."
Daly said the NHL is not helping Hicks find new investors for the Stars.
FINalternatives.com quoted a source as saying Hicks's loans are partially secured by the Stars and Rangers but not the soccer team or his personal assets.
While NHL commissioner Gary Bettman has maintained the league is financially healthy despite the recession and much other evidence to the contrary, news that Hicks is in trouble was unexpected.
After he bought the Stars from Norman Green in December of 1995, the team embarked on a run of success that culminated in a Stanley Cup championship in 1999. The team regularly played in front of sold-out houses at Reunion Arena and the new American Airlines Center when it opened at the start of the 2001-02 season.
But the Stars' playoff performances declined in recent seasons and so did their attendance. They did make the Western Conference final last season, but they will likely miss the playoffs this season.
sports.theglobeandmail.com/servlet/story/RTGAM.20090403.wspt-hick-03/GSStory/GlobeSportsHockey/home