Phoenix LXXIII: "This Space Available"
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04-03-2013, 09:45 PM
Join Date: Feb 2010
Originally Posted by
Okay, remind me not to invest with Capstone. Seriously, how are the Coyotes are an "undervalued asset" at $170 million in Glendale?.. Anyway, I'm glad he thinks so. This is exactly the type of potential owner that has been needed for a local sale (assuming he actually has the money). The NHL and COG needed that rare person who saw the asset as being undervalued at the sale price so that they wouldn't need to extract a huge subsidy from the COG to offset some of the purchase cost.
If that is indeed still the asking price. Dont quite understand how it could remain static for what now, 2 years? It simply has to be more as of right now, today.... so lets say its $200M. In the grand scheme of things, its really all relative once you gets past the sticker shock. It depends on ones perspective as to whether its under or over-valued. If the franchise can be purchased with portability options after 48 months, the Consent Forms capped, your probably looking at expenditures including purchase price & losses over the next 2.5-3yrs or so of at least $270M or thereabouts if you did little to nothing more than what the NHL's done over the past 3 seasons.
However, if you could make headway on the sales & marketing sides of the equation, sponsorship & advertising sales, suite leases, gradual increases in ST sales & general ticket pricing, charge for parking, boost non-hockey revenues with concerts & events etc, receive a fair market value AMF from Glendale, then yes, I could see how someone could say "this is an undervalued asset". Takes some serious hubris, brass. But why not? Its precisely that kind of thinking that built America. As Kenneth Schnitzer, owner & founder of the WHA Houston Aero's & part of owner of the Rockets once said, "We Houstonians dont care who your Grandfather was. This is a city of unlimited opportunity". Well, I would submit to you that so is Phoenix, Glendale & the Coyotes. The only thing holding man back are the limits of his own imagination. If this guy Pastors got the money, the vision, have at er'. Just dont try & do it on the backs of Glendale's taxpayers & accepting of that, still believing the assets under-valued, then he'll succeed, and in 5yrs rather than serving notice the teams leaving, re-negotiating a long term lease. I guess we'll find out & fast just how
this guy is.
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