Ownership Cluster**** Thread: This is the last one, Really!
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07-20-2012, 11:03 AM
Join Date: Oct 2011
Location: Scottsdale, AZ.
Originally Posted by
...ya, its a real head scratcher. Honestly AP I dont know that price is the problem anymore, as its just possible the NHL has in fact lowered it and possibly provided terms. Fact is though, Jamisons going to need a lot more than just the lets say $142M or whatever the deal might be in liquidity, cash money, in order to beef up sales & marketing efforts, personnel, off-ice administration etc, then theres the team itself, player personnel & payroll, expenses. Another $150M+ over & above the sale price itself to cover himself for 2-3yrs. Indeed, the NHL requires as much from anyone buying a team. Hulsizers bid for St.Louis denied when he was unable to produce proof of liquidity & credit in order to cover losses moving forward. So what is the hold-up?. Is it;
1) The uncertainty of a 12-13 season with a likely lockout or walkout?
2) The Tax Petition Ballot Efforts & hearing pending late July early August?
3) Greg Jamison is still raising funds, selling investors Units, not quite "there" yet?
According to Daly, the leagues not overly concerned that Jamison either hasnt already raised enough or wont be able to, so their comfortable & content in that regard (or so they say). Maybe they fully expect a lockout, so theres no hurry, no deadline, basically 6 mnths or even a year to get it done, a far more viable CBA coming out the other end for challenged & smaller markets?. Could be any number of things going on behind the scenes. Its too late to sell for relo if that was seriously being considered. Wouldve happened by now, so something strange is going on. Im in agreement with most, including Bross, that something, anything should be said by the NHL & or Jamison & toute sweet. Reassure the market. Reconfirm your commitments & optimism. Let the players agents know WTF's going on so they can plan their lives accordingly.
Good points ""K" what i find interesting is that the NHL stands to lose a pot load more on this franchise if there is a lockout/walkout. The league may not be playing games but each team has fixed expenses that are ongoing regardless. those expenses, in the Coyotes case will have to be assumed by the league, given the fact that the COG has not agreed to cover losses for the upcoming year. So if the league is taking their sweet time on settling this ownership issue they are also incurring new losses that will ultimately be added to the present basis of 170MM.
Your point regarding the GJ bid is valid as well, the purchase price is one number the liquidity to fund future losses is yet another. Does it make any sense that GB may be asking GJ to escrow a year or two worth of projected losses if he is to assume ownership?
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