View Single Post
Old
12-14-2010, 10:58 AM
  #8
AllByDesign
Thomas who?
 
AllByDesign's Avatar
 
Join Date: Mar 2010
Location: Location, Location!
Country: Canada
Posts: 2,299
vCash: 500
Quote:
Originally Posted by Evil Doctor View Post
I am no where near as knowledgeable about business as most of the posters on here, so perhaps some others can help me with this. I think I get most of the pitfalls the COG will face if this goes wrong for them, but for Hulsizer, selling the parking and naming rights, isn't he removing a substantial chunk of revenue for the Coyotes, leaving them perhaps in worse situation financially? The only thing I can think that Hulsizer is doing is taking the lump sum payment and creating a hedge fund and using the returns on that as a source of revenue for the team.

Look at it from this angle. MH can make an immediate purchase transaction of $70 million to buy the team. He then also has $17 million of losses covered for each season. Is that a good deal? I think in the long run it is the best pro sports offer ever made to operate a franchise. I think when MH gets out of this he will have made a tidy sum, and the COG would have crippled themselves in an effort to provide this for him.

AllByDesign is offline