The Business of HockeyDiscuss the financial and business aspects of the NHL. Franchise sales, valuations, TV contracts, ratings, expansion, relocation, the CBA and work stoppage discussion goes here.
Maybe the leagues had an epiphany djvoiz?. They realize now, after nearly 3 years, that price is in fact the biggest single obstacle to selling the team locally. Decided to eat app. $100M in a wildly magnanimous, munificent & magnificent gift to Greg Jamison, the COG & the people of Arizona.
as if...
Maybe the NHL has not fully shown its hand on the price yet. Perhaps Jamison and Glendale will negotiate a lease, and Jamison will present an offer to the NHL lower than the current asking price. It wouldn't surprise me if Bettman took a low offer back to the BOG rather than rejecting it outright. Why should he take the hit? Put it on the other owners to take a call on whether they will accept a bit of a haircut to facilitate a local sale. I think that at this point, at least Bettman can go to the BOG and say that this is the best price that they can get for a local sale.
For the team, maybe. But Jamison wants the arena and Westgate as well.
So were' being told. Westgate I could see jumping on, and Id certainly want the "option" to purchase Glendale Arena at some point in time if it appeared feasible to do so... but what troubles me is this figure being bandied about. $100M for the team. On the one hand, has the league actually smartened up & applied the TNSE relo fee to paying down its debt & thus discounting the price or has Jamison been able to assume the balance through the NHL's credit facilities with BofA and provide less cash up-front in doing so?. Until we find out, get some solid information from reliable sources, hard to fathom. I surely do hope its the case but Boy, in terms of Exit Scenarios this is one thats easily played, a card that Ive been half expecting the league to put down on the table as the season & playoffs wind down.
Maybe the leagues had an epiphany djvoiz?. They realize now, after nearly 3 years, that price is in fact the biggest single obstacle to selling the team locally. Decided to eat app. $100M in a wildly magnanimous, munificent & magnificent gift to Greg Jamison, the COG & the people of Arizona.
as if...
Honestly, if CoG had half a brain they'd have gotten ahead of the curve on all the prospective buyers over the years by establishing a workable lease deal BEFORE sending people off to Bettman to talk about price. This then allows the prospective buyer to go back to the NHL and say "this is what the team is worth given the real world constraints of the arena", and force the NHL to shoot down or accept the terms.
If nothing else, they would make themselves look proactive and reasonable, instead of painting themselves as the incompetent tools they apparently insist on being seen as.
How solid is the financial foundation of Jamieson's group? From what I've seen in the past, groups of a few not-as-rich owners tend to be more 'fragile' than a single owner of the same cumulative wealth when things go wrong.
There is quite a bit of speculation on the price of the franchise. The NHL has not copied me on any correspondences, so I don't know what the price is. But, I do know what the market has valued the team at:
2009: Coyotes franchise fails to generate a Glendale based bid during bankruptcy auction. The asset is sold to the NHL for $140MM.
2010: Jerry Reinsdorf completes an MOU for the Coyotes whereby he would directly fund $103MM for purchase of the team.
2011: Mathew Hulsizer completes an agreement for the Coyotes whereby he would directly fund $70MM for the purchase of the team.
Since the termination of the Hulsizer deal: Westgate was foreclosed, Glendale's bond rating was lowered, and the Mayor instructed the staff to lower the budget allocation for Arena Management to $11M for next fiscal year.
Perhaps the NHL feels those events have helped the asset appreciated in value.
Why should he take the hit? Put it on the other owners to take a call on whether they will accept a bit of a haircut to facilitate a local sale. I think that at this point, at least Bettman can go to the BOG and say that this is the best price that they can get for a local sale.
... and then hide behind the BOG's skirts (yes skirts Ladys, all 29 a ya) when they reject the offer, pointing the finger at his employers, not my decision Maing, no my yob, in a pre-ordained & pre-scripted plan hatched in the backrooms of some PR Genuises at Burson-Marstellar over on 5th Avenue?... Pretty much see that one coming from about 10,000 Light Years from Home. Or do you prefer the Beatles Whileee?. Got em both. Either version'll work.
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Originally Posted by Dado
Honestly, if CoG had half a brain they'd have gotten ahead of the curve on all the prospective buyers over the years by establishing a workable lease deal BEFORE sending people off to Bettman to talk about price.
Absolutely, and it was apparent with what came out during Moyes' BK that Beasley was the Joker in the deck and he shouldve been reassigned or whatever, Glendale then hiring the outside services of some talent capable of eating the league for lunch. Ganis & SportsCorp. Someone of that ilk to deal with the league, prospective owners, Glendales Champion if you will. Instead, the NHL's gotten away with Blue Murder, reversing onus of responsibility while pretty much abrogating themselves of any whatsoever. A far to clever & cute form of passive aggressiveness thats wandered so far down reeuQ teertS as to be almost unrecognizable from its gender at birth.
Originally Posted by CasualFan
I find it somewhat alarming that the potential owners being discussed in the media are all existing business associates of the league with direct ties to the NHL.
Of course that does not make them ineligible to express interest in purchasing the team. However, it introduces the potential that their interest in the team is not genuine but rather designed by the league to increase the NHL's leverage in other negotiations.
Quote:
Originally Posted by KevyD
Good point. Never thought of that.
I did.
When I found out Jamison was on the NHL Executive Committee I figured he was well versed to what was going on in Glendale from the beginning. My first thought was he was enlisted by Bettman to put something together as one last effort to keep the team there.
The problem with Phoenix is always the same thing. The only guys with money that would be interested are guys that sees it as a potential investement. They figure they can take it over for cheap and do something with it wich would augment the value and then they can re-sell or take it somewhere else. And Gary and the NHL wants guys that are gonna keep it in Phoenix and and that it's gonna be a long-term investement. I think they can find many guys that would be interested in a 3-year deal but not more than that. The thing is going further than this would be too dangerous for anybody because there's no garantee that things would get better.
Will be interesting to see if the NHL wants to take a 200M+ deal from QC or 100M from Jamison
Oh wait a minute...
Yeah. The NHL will go where the money is at. I'm sure they would love that 200M
BOG knows that if Winnipeg managed to not be part of revenue sharing, it means more money for other teams and that the same thing could happen in Quebec. A new deal and team staying in Phoenix does not gives them any hope that the Coyotes finances wont be suc king in 100M of profits per year.
Forgive me Mods (OT) but I am proud of myself - I finally started a Thread that the Mods did NOT take away. WEW HEW!!!
It is in the 'Prospect' Forum. I have rated the last 12 drafts - Rank The Drafts. Feel free to stop by everybody and comment / tell me I am wrong - I know no one will.
To all Coyote fans… If you meet Pittsburgh in the Finals, unlike Philly, do NOT say anything to make Crosby angry. You would not like Sid when he’s angry. Dude is on fire and there to prove he is the best in the game!!!! 2 points after 1 period.
Next to Christmas, the best time of the year! The 1st round of the NHL playoffs.
MOD Squad : Please don't delete or punish. I promise not to go it again.
If you are referring to the Jetsfan88 who reported in 2010 Atlanta to Winnipeg, who also reported the press conference set up, for the potential of the Coyotes sale and who also reported about Betman being in Winnipeg, and sticking to his guns when everyone denied it, only to have it confirmed after the sale of the thrashers.
Who also leaked the details of the Hultziser deal a few days before it came out how much of a handout he was looking for.
The one who tried to tell everyone not to bother watching the COG meeting the second time around as Scruggs had already given the assurances to the NHL the money would be there and we were already well on our way to finishing up the deal with Atlanta.
And that the team name was going to be the Jets even when Mr. Ford himself stated otherwise.
Then yes thats me.
Welcome to HFBoards, my friend. Good to have you aboard. I have followed your posts on several message boards and can vouche for your accuracy. I look forward to more of your posts in the upcoming days
In regards to Scrugg's comments: correct me if I'm wrong but the "this is the best offer we've seen yet" doesn't really stand for much. The way I see it, is it may be the best offer in terms of an arena lease (I'm reading it's supposed to be 10-15 years where as other offer were from 3-7 years max) So yes, this would be the best offer COG has seen but that doesn't necessarily mean it's the best offer the NHL has seen as they are negotiating two different things. I've read the Jamison offer is between $100-140m.
PKP is willing to put $230m on the table. Hmmmm not sure what offer I'd take!
Bettman says says no timeline for phoenix solution
Interesting quotes from Bettman:
Quote:
"We're not setting a timeline," Bettman said Wednesday night. "We're dealing with it, and we're continuing to pursue a solution and reach a point where we conclude we can't reach a solution, we'll deal with it. But we do hope we can reach a solution so that the timing will become irrelevant."
Quote:
"I don't think it serves a constructive purpose to discuss the specifics of who may be doing what," Bettman said. "There is activity ongoing on a variety of fronts, and I think we need to let it play out without outside influence."
Glendale mayor: City to talk with 1 Phoenix Coyotes buyer
More interesting tidbits:
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The Glendale City Council met Tuesday night behind closed doors for an update. Beasley provided information about potential deals with the separate groups led by Jamison and the unnamed party.
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Mayor Elaine Scruggs on Wednesday said the council instructed staff to continue negotiating with Jamison but not the second group. She said information on the latter group "does not meet the criteria set out by the Glendale City Council."
Revenues!?
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The city manager has said that the council's direction has been to come to a lease agreement with a potential Coyotes buyer for the city-owned Jobing.com Arena that ensures the team stays in Glendale, doesn't negatively affect the city's budget or revenue streams and if possible, generates revenue for the city.
Jetsfan88's posts about this whole thing being smoke and mirrors has really got me thinking.
It's interesting that when the Coyotes were in still in the playoff race and the potential existed that they would miss the post-season (and the additional season COG purchased for 25 million would already be over) that Scruggs and the COG were all doom-and-gloom about the whole situation.
Then the Coyotes make the playoffs (and the league wants to ensure they sell out every single playoff game and not lose a penny more than they already have) and suddenly not only are there multiple bids for the team, but they're going to go public in the near future.
Perhaps everything now is optics. The league knows that uncertainty about the future about the Coyotes and rumors about Quebec City building a new arena might scare fans away from committing to the team and buying playoff tickets. So they get Beasley/COG/Jamison to say what they want in order to give Coyotes ticket holders confidence that the team will be staying.
I know it sounds far fetched, but the NHL is a business and at the end of the day they're only concerned with one thing: making money (said in Kevin O'Leary's voice )
Jetsfan88's posts about this whole thing being smoke and mirrors has really got me thinking.
It's interesting that when the Coyotes were in still in the playoff race and the potential existed that they would miss the post-season (and the additional season COG purchased for 25 million would already be over) that Scruggs and the COG were all doom-and-gloom about the whole situation.
Then the Coyotes make the playoffs (and the league wants to ensure they sell out every single playoff game and not lose a penny more than they already have) and suddenly not only are there multiple bids for the team, but they're going to go public in the near future.
Perhaps everything now is optics. The league knows that uncertainty about the future about the Coyotes and rumors about Quebec City building a new arena might scare fans away from committing to the team and buying playoff tickets. So they get Beasley/COG/Jamison to say what they want in order to give Coyotes ticket holders confidence that the team will be staying.
I know it sounds far fetched, but the NHL is a business and at the end of the day they're only concerned with one thing: making money (said in Kevin O'Leary's voice )
I don't think your premise is far-fetched at all. From the NHL's perspective it makes perfect sense. But why would the CoG/Beasley/Jamison play along? If you're the CoG and you've determined the the 'Yotes are on the way out of town, I fail to see any motivation to promote the team. Unless of course the NHL in exchange won't collect the 5 million dollars thats absent from the 25 millions the NHL is owed...
Only sports media would put up with Bettman's ridiculous line regarding a timeline for the Coyotes sale. He's been saying the same thing for 3 years. So are we to believe that the NHL executive have the business acumen of MC Hammer? The NHL is world class at insulting our intelligence.
As usual, Beasley, who will bail out later this year with a golden parachute into “retirement” and a six-figure pension at the age of 53, indicates the latest prospective deals will answer the cash-strapped city’s prayers. But Scruggs, who will still have a vote on the city’s budget despite her intention not to run again for mayor this summer, points out the Jamison deal depends on him raising the money for the NHL’s asking price of $170-million for the Coyotes.
A civil servant retiring at 53 with a six figure pension???
Numbers from the Arizona City/County Management Association put the average city manager's salary statewide at around $113,356, slightly higher than the national mean for city managers of $106,408.
In the largest 15 cities, the average of the salaries listed in contracts was $183,416.
...
City manager salaries:
City manager annual salaries, according to contracts reviewed by Cronkite News. Unless otherwise noted, salaries are from fiscal 2009-10. Some managers were paid less because of furloughs or voluntary pay cuts:
"We're not setting a timeline," Bettman said Wednesday night. "We're dealing with it, and we're continuing to pursue a solution and reach a point where we conclude we can't reach a solution, we'll deal with it. But we do hope we can reach a solution so that the timing will become irrelevant."
