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zurg999 05-12-2006 12:40 PM

Aymand and other financial and legal gurus...
 
I read in the TO Sun that Gillette is bringing in $240M in new refinancing and taking about $60M in cash. Any thoughts?

Mine are: great for him, Profits + Happy Owner willing to spend + good management should = better team on ice.

Teufelsdreck 05-12-2006 01:14 PM

Quote:

Originally Posted by zurg999
I read in the TO Sun that Gillette is bringing in $240M in new refinancing and taking about $60M in cash. Any thoughts?

Mine are: great for him, Profits + Happy Owner willing to spend + good management should = better team on ice.

You're getting ahead of yourself. Gillett fits the profile of big real estate developers. We hear that the salary cap may be raised. Let's see what he's willing to spend on the team rather than on sweetening his bottom line before we bestow knighthood on him.

La Grosse Tendresse 05-12-2006 01:25 PM

Quote:

Originally Posted by zurg999
I read in the TO Sun that Gillette is bringing in $240M in new refinancing and taking about $60M in cash. Any thoughts?

Mine are: great for him, Profits + Happy Owner willing to spend + good management should = better team on ice.

Woah.

Gillett is in the business of making money, just like MLSE. He is not a rich enough man to simply spend in order to win. He is not really a "happy owner willing to spend" as he doesn't have the resources of those kind of owners. He is simply going to spend enough to make sure that the Bell Centre is sold out.

All the extra profits are going directly to his pockets and he is keeping them, or he will simply reinvest them in order to pay some of his pretty big debt load for his other businesses. He is simply not rich enough to be one of those big time sport owners who spend anything to win.

BigTimer* 05-12-2006 01:36 PM

Quote:

Originally Posted by WEEB
Woah.

Gillett is in the business of making money, just like MLSE. He is not a rich enough man to simply spend in order to win. He is not really a "happy owner willing to spend" as he doesn't have the resources of those kind of owners. He is simply going to spend enough to make sure that the Bell Centre is sold out.

All the extra profits are going directly to his pockets and he is keeping them, or he will simply reinvest them in order to pay some of his pretty big debt load for his other businesses. He is simply not rich enough to be one of those big time sport owners who spend anything to win.

He's plenty rich enough. You're just spewing uninformed garbage.

La Grosse Tendresse 05-12-2006 03:04 PM

Quote:

Originally Posted by BigTimer
He's plenty rich enough. You're just spewing uninformed garbage.

Sure, I'm the one who is uninformed. The guy went bankrupt twice in his life, and he took a huge dept load in order to purchase the Habs as he had very little liquid assets to pay for it. I'm not saying that he is a poor man, just that he isn't in the "billionaires who spend money on sports team for team success rather than profits" category. He needs the most money possible out of the Habs, and you can't really get any more revenues than what he got this year. Why spend more then?

But sure, I'm the one who is uninformed.

AD 05-12-2006 03:08 PM

This is just a restructuring deal. Maybe he got a better financing deal and went for it..

It doesn't mean much for the team, I don't think.

Squeaky 05-12-2006 03:40 PM

Quote:

Originally Posted by aymand
This is just a restructuring deal. Maybe he got a better financing deal and went for it..

It doesn't mean much for the team, I don't think.

What he said. It's hard to say without reading the article, but it sounds to me like he just managed to pick up some liquid assets, but there will be an equal amount of debt around too. Probably has nothing to do with the habs.

Guy Caballero 05-12-2006 03:42 PM

I am confident from Gainey's recent comments that the Habs will spend up to the cap, leaving room, of course, to pick up other players during the season.

habfan4 05-12-2006 03:42 PM

There is an entire industry revolving around refinancing debt (both private and public), this will have no impact on the team.

For those interested in Gillett's finances have a look at his bio on the Habs web page Gillett Link and then google the companies he's involved with/has an equity stake in.

To summarize, Gillett may not be the wealthiest of owners, but he still appears to have rather deep pockets or generous bankers.

jester099 05-12-2006 03:50 PM

Quote:

Originally Posted by WEEB
Woah.

Gillett is in the business of making money, just like MLSE. He is not a rich enough man to simply spend in order to win. He is not really a "happy owner willing to spend" as he doesn't have the resources of those kind of owners. He is simply going to spend enough to make sure that the Bell Centre is sold out.

All the extra profits are going directly to his pockets and he is keeping them, or he will simply reinvest them in order to pay some of his pretty big debt load for his other businesses. He is simply not rich enough to be one of those big time sport owners who spend anything to win.

I don't think that's true. If it was, we'd be like Chicago.

There was no need to give 4 millions to Kovalev to keep the phone boot pacted IMHO....

habfan4 05-12-2006 03:56 PM

Quote:

Originally Posted by jester099
I don't think that's true. If it was, we'd be like Chicago.

There was no need to give 4 millions to Kovalev to keep the phone boot pacted IMHO....

I concur, after a lock out year Gillett could have instructed Gainey to dress 23 shaved apes in the CH and the Bell Centre still would have been sold out.

BigTimer* 05-12-2006 03:58 PM

Quote:

Originally Posted by WEEB
Sure, I'm the one who is uninformed. The guy went bankrupt twice in his life, and he took a huge dept load in order to purchase the Habs as he had very little liquid assets to pay for it. I'm not saying that he is a poor man, just that he isn't in the "billionaires who spend money on sports team for team success rather than profits" category. He needs the most money possible out of the Habs, and you can't really get any more revenues than what he got this year. Why spend more then?

But sure, I'm the one who is uninformed.

Two of his major investments ran into troubles not due to his management but rather external factors which diminished Gillett's net worth significantly. The "mad-cow" scare put a serious dent in his meat processing venture while a couple of bad snow seasons seriously reduced profits at his ski-hill operations. Not only has the meat issue been resolved but last ski season saw Gillett rake in more money than he could count because of more than cooperative weather. Just like any businessman, Gillett went through some ups and downs but the bottom line is that he's a very wealthy man and the potential player budget increase (5-8 million) is a relatively small piece of a bigger pie. Gillett is genuinely interested in the on-ice performance of the team and he wants his name on the cup. If he didn't, why would he of purchased a franchise in turmoil while his own financial dealings were unstable to say the least?

jester099 05-12-2006 04:16 PM

Quote:

Originally Posted by Guy Caballero
I am confident from Gainey's recent comments that the Habs will spend up to the cap, leaving room, of course, to pick up other players during the season.

Up to the cap I don't know, but I guess the Habs salaries could increase a bit.

Before the lockout, the habs were not making money at 40 millions. The big difference since then is the increase of the $can.

There's also the negative impact of the revenu sharing... I'm not sure exactly what will be impact of those factors on next year's salarie for the habs, but I expect them to be somewhat prudent, as long term deals could come back to haunt them is the $can drops back.

We can't really know what will happen in 2-3 years on that regard...

tinyzombies 05-12-2006 04:19 PM

If he didn't commit the necessary resources and cut the salary budget, then and only then would he see a backlash in fan support. With the salary cap, his overhead is severely reduced for a much more competitive product. As long as we stay near the cap, we'll stay on track for a Cup.

What happened with the taxes? Didn't he get a break from the govt, then they took it back?

AD 05-12-2006 04:22 PM

Quote:

Originally Posted by habfan4
I concur, after a lock out year Gillett could have instructed Gainey to dress 23 shaved apes in the CH and the Bell Centre still would have been sold out.

Hehehe.. I can't get the mental image of the shaved apes skating around out of my head...

sXe 05-12-2006 04:24 PM

No one in the history of sports ever bought a sport franchise to make money.
"He's a billionnaire who needs money" has surpassed any and all stupidity I've ever encountered.

sXe 05-12-2006 04:29 PM

Quote:

Originally Posted by habfan4
I concur, after a lock out year Gillett could have instructed Gainey to dress 23 shaved apes in the CH and the Bell Centre still would have been sold out.

So the book is out on Bonk I see. :sarcasm:

jester099 05-12-2006 04:30 PM

Quote:

Originally Posted by aymand
Hehehe.. I can't get the mental image of the shaved apes skating around out of my head...

Yeah, with 20 000 people showing up just to boo them :)

habfan4 05-12-2006 04:36 PM

Quote:

Originally Posted by sXe
So the book is out on Bonk I see. :sarcasm:

The first clue is his neanderthalesque playoff beard (edit: and sloping forehead).

habfan4 05-12-2006 04:37 PM

Quote:

Originally Posted by jester099
Yeah, with 20 000 people showing up just to boo them :)

Correction - 21,273 people :D

Mikhail Grabovsky* 05-12-2006 08:00 PM

Quote:

Originally Posted by WEEB
Sure, I'm the one who is uninformed. The guy went bankrupt twice in his life, and he took a huge dept load in order to purchase the Habs as he had very little liquid assets to pay for it. I'm not saying that he is a poor man, just that he isn't in the "billionaires who spend money on sports team for team success rather than profits" category. He needs the most money possible out of the Habs, and you can't really get any more revenues than what he got this year. Why spend more then?

But sure, I'm the one who is uninformed.


Great Post...... :shakehead

Donald Trump has filed for chapter 11, 17 times...
very very poor man...... :shakehead

Hackett 05-14-2006 11:04 AM

Quote:

Originally Posted by sXe
No one in the history of sports ever bought a sport franchise to make money.
"He's a billionnaire who needs money" has surpassed any and all stupidity I've ever encountered.


I think there is a pride factor involved. Sure, Gillette may not need the money but you never want to lose money because that is a sign of failure to a certain extent.

Personally, I dont care. From the fan point of view, we can only hope that he also takes a tremendous amount of pride in winning (which I believe he does).


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