Phoenix XCVIII: 5tayin' Alive
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07-28-2013, 10:45 PM
Join Date: Nov 2011
Originally Posted by
It's really very difficult to see how they could possibly make any money.
There are 2 potential positive outcomes:
1) Enough non-hockey activity that the Arena makes a profit, big profit. Along with increased ticket prices, and a miracle of buzz, so the team becomes the 'in' thing. This negates the return to CoG. Since the AMF actually pays the Fortress loan, all that's left is the operating loan from the NHL, and if the whole thing is in the black....
2) Hold on to the team for 5 years, suffering losses all the while. At the end of 5 years, 96M is left on the Fortress loan. Since the Reve Sharing and the Dev Fund money help offset losses, the 50M trigger for the out-clause could be reached while using substantially less than that of the 85M loan from the NHL. Let's say they have to repay 30M of that, after making Glendale whole to a 6M/yr AMF. Now, they have 126M of debt on the team, and 48M of their own $$ invested. Sell to PKP for 220M, pocket ~45M profit.....
Even more likely, however, is
3) LeBlanc doesn't really care, since he is selling in 5 years, and he only has 1 or 2 or 5M invested, and that is not much for the privilege of playing with the big boys....
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