Phoenix LXXII: Send in the Clowns
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02-15-2013, 02:20 PM
Originally Posted by
Cohen had X amount in debt. He transferred the ownership to Siegel and Viner for the reported $200MM, iirc, ergo the value is still that sum. Cohen could have taken the cash and then paid off his debt. Same result.
I'm confused. My understanding is that the debt was assumed, not paid off. So the option of "taking the cash" was never on the table - there was no cash on the table - and the debt is still there. If that description is accurate (is it?), he essentially bought a $0 call option on an asset with bad cash flow.
I suspect that if the NHL's offer in Glendale was "here, take the team for nothing, run the team and pay us $170M in installments when you can", new owners could have been found right quick.