Phoenix LXXII: Send in the Clowns
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02-15-2013, 04:03 PM
Join Date: May 2010
Originally Posted by
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.
It depends completely on what the installment plan is, and what is meant by "when you can". As long as the total cost is $170 million, I think it is quite clear that the NHL will not easily find credible ownership options, even if Glendale renews the same subsidization offer they put on the table for Jamison.
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