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The Business of Hockey Discuss the financial and business aspects of the NHL. Topics may include the CBA, work stoppages, broadcast contracts, franchise sales, expansion and relocation, and NHL revenues.

Ducks to be sold?

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09-11-2004, 08:01 AM
  #1
hockeytown9321
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Ducks to be sold?

http://www.tsn.ca/nhl/news_story.asp?ID=98198

If the league were in such dire straits, why would anybody be so ready and willing to buy into it? Why wouldn't he wait until after a new CBA?

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09-11-2004, 09:14 AM
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GKJ
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Quote:
Originally Posted by hockeytown9321
http://www.tsn.ca/nhl/news_story.asp?ID=98198

If the league were in such dire straits, why would anybody be so ready and willing to buy into it? Why wouldn't he wait until after a new CBA?

He's already owned 2 teams, his passion for hockey is great.


Maybe he wants in on the CBA neogeotiations

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09-11-2004, 09:41 AM
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x-bob
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Quote:
Originally Posted by go kim johnsson
He's already owned 2 teams, his passion for hockey is great.


Maybe he wants in on the CBA neogeotiations

I heard on CHfans That if he buys the team, he's gonna move them to Kansas.

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09-11-2004, 10:40 AM
  #4
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Quote:
Originally Posted by hockeytown9321
http://www.tsn.ca/nhl/news_story.asp?ID=98198

If the league were in such dire straits, why would anybody be so ready and willing to buy into it? Why wouldn't he wait until after a new CBA?
It's about time, the Ducks have been actively looking for a new owner for years...

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09-11-2004, 12:25 PM
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I have some half-baked theories

An interesting group of possible buyers here.

I'll guess the guy who is running Arrowhead to end up with the team. However, when the owner of the Los Angeles Kings owns the company constructing an arena in Kansas City, you can't write that one off, either. (shades of Norman Green and the Gunds).

Even though I'm highly sceptical of Kansas City, it is possible. There are a lot more people in Southern California than there are in metro Kansas City, which already has MLB, NFL, and some strong NCAA teams, but no NBA or NHL . The NHL seems to work a lot better in medium-sized US markets than in Southern California, so moving the Ducks into a nice new arena is certainly possible. I can't see the NHL having any objections to moving to Kansas City, but Gary Bettman is going to make absolutely sure that Kansas City "buys" the hockey team for at least the same amount Columbus and Minnesota paid in expansion fees).

David McDavid seems to be a bona fide bidder and almost bought the Thrashers, but what is his role? Maybe he really wants a team (he's from Texas..is Houston still hungry for an NHL team now that they have a new arena?) Maybe he helps push up the price and gets rewarded with another team later as thanks for bidding up the price on the Thrashers and The Ducks ( the guy must like birds, I guess).

I'm still betting on the Duck Pond operator, though. The Arrowhead Pond was one of the arenas that caused the Ogden Corporation to evolve from a concessions operator to an arena financier to an energy company to a multi-million dollar Chapter 11 bankruptcy over a brief period of time. Among the last "assets" of Ogden (which had been renamed Covanta) was the paper they held on the titles to the Corel Center and Arrowhead Pond, and it was the Ottawa Senators/Corel Center financing scheme that pushed Ogden/Covanta into bankruptcy. I kind of lost track of the Arrowhead situation.

The Ogden/Covanta bankruptcy has been completely wound down, I believe, but there is still an opportunity here to sell an NHL team for it's book value, and tie it in with an arena sale. It worked in Ottawa, it worked in Buffalo, it worked in Atlanta...sell the hockey team for at least the amount that teams paid in expansion fees, and the NHL franchise values continue to be high so that their book value doesn't have to be written down. The other side of the coin is that the arena gets thrown in for next to nothing.

In sum, the Ducks will probably be sold as Micheal Eisner closes the books on the non-core Disney assets before he leaves the company. Disney has a lot of ways to account for what it ends up selling the Ducks for, but it certainly won't be for a mere $ 50 million when the deal finally gets done. Just as in Ottawa, Buffalo, and Atlanta, the NHL franchise will be sold for at least what the last expansion teams paid in franchise fees, and the arena (Arrowhead) will be tied into the deal at a heavily discounted price.

I'll admit these are some half-baked theories on my part, but I really don't think anybody is going to get their hands on an NHL team for $ 50 million - too many other NHL owners would have too much explaining to do to too many banks.


Last edited by GabbyDugan: 09-11-2004 at 02:47 PM.
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09-11-2004, 01:16 PM
  #6
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Quote:
Originally Posted by GabbyDugan
I'll admit these are some half-baked theories on my part, but I really don't think anybody is going to get their hands on an NHL team for $ 50 million - too many other NHL owners would have too much explaining to do to too many banks.
I think it is very clear thinking, nice post.

As you have alluded, the Ottawa Senators bankruptcy had nothing to do with player salaries, and everything to do with owner boardroom decisions.

If every team is bought by a billionaire for cash, and you try to buy one by borrowing $50mil from the bank to buy it, and then have to make the loan payments each month, the problem isnt player salaries, its owner financing.

Like it or not, ownership is a game reserved for billionaires, not millionaires.

Kansas sounds like the perfect market for the NHL. Like Colorado they tried once and failed. Maybe the pattern is they buy a team with money problems, but with young assets and take off like the Avalanche did.

Do it right, and you can make hundreds of millions of dollars. And the NHL is now even proposing it should be risk free.

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09-14-2004, 09:55 AM
  #7
GabbyDugan
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Another NHL team and arena may be changing hands in the next few months. The Vancouver Canucks and GM Place deal could be in the $ 250 million range.

http://www.sportsnet.ca/hockey/artic...14_081547_4676

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09-14-2004, 11:56 AM
  #8
Tom_Benjamin
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Quote:
Originally Posted by GabbyDugan
Another NHL team and arena may be changing hands in the next few months. The Vancouver Canucks and GM Place deal could be in the $ 250 million range.

http://www.sportsnet.ca/hockey/artic...14_081547_4676
It's an awesome deal for McCaw. It is really complicated, but when you sort it all out, this represents a massive capital gain for McCaw. The rink and team cost him about $200 million, but he has already realized a $75 million US capital gain on the Grizzlies. Between that and the General Motors fee for naming rights, the rink is paid for. Extract that - and never mind the depreciation on the building over 10 years - and McCaw has turned $60 million Canadian into $250 million Canadian.

Buy low, sell high. Get richer.

Tom

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Old
09-14-2004, 12:31 PM
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GKJ
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The Canucks are believed to have profited around $25 million last season and $20 million the season before.

That's not too bad either.

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Old
09-14-2004, 06:00 PM
  #10
thinkwild
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The timing of this announcement, is great.

Bertuzzi affect sale value?

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09-15-2004, 02:07 AM
  #11
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Ducks move

No offense to the cities I'm about to mention but I wish the league would get rid of several teams, like Anaheim, Florida, Dallas, etc. and bring back cities that should have a team...Winnipeg, Quebec, etc. I know this will probably never happen but a man can dream...like that there will be hockey this year. I've always been a little irritated by the whole Mighty Ducks theme.

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