HFBoards

Go Back   HFBoards > NHL Eastern Conference > Atlantic Division > Montreal Canadiens
Mobile Hockey's Future Become a Sponsor Site Rules Support Forum vBookie Page 2
Notices

Turmoil at CIT could ripple through NHL and Habs

Reply
 
Thread Tools
Old
07-15-2009, 08:37 AM
  #1
Artyukhin*
 
Join Date: Oct 2003
Country: Canada
Posts: 13,831
vCash: 500
could be bad news for many NHL teams(Habs)

http://hfboards.com/showthread.php?p...8#post20431348

Quote:
A chapter 11 filing could be bad news for many NHL teams. It has been an important lender to several, including the Ottawa Senators, Montreal Canadiens
, New Jersey Devils and Nashville Predators.

CIT Group's troubles "are going to be horrible for [the NHL]," said a financial adviser to several sports teams who asked not to be identified because he works with hockey clubs. "When those [financings] come up for renewal I just don't know what happens."

Artyukhin* is offline   Reply With Quote
Old
07-15-2009, 08:39 AM
  #2
bhuya71
Registered User
 
bhuya71's Avatar
 
Join Date: Jun 2008
Location: Ottawa, Ontario
Country: Bangladesh
Posts: 2,549
vCash: 500
Quote:
Originally Posted by doug mckenzie View Post
**** does this mean that they loan us money and we will have to pay up? or that they finance us and we won't be getting that revenue anymore? not great with this stuff?

bhuya71 is offline   Reply With Quote
Old
07-15-2009, 08:41 AM
  #3
Artyukhin*
 
Join Date: Oct 2003
Country: Canada
Posts: 13,831
vCash: 500
Quote:
Originally Posted by bhuya71 View Post
**** does this mean that they loan us money and we will have to pay up? or that they finance us and we won't be getting that revenue anymore? not great with this stuff?
when the people lending you money go bankrupt...not so good...

Artyukhin* is offline   Reply With Quote
Old
07-15-2009, 08:47 AM
  #4
HabsHockey*
Keep Keeping On
 
HabsHockey*'s Avatar
 
Join Date: Nov 2007
Posts: 4,984
vCash: 500
I wouldn't worry about it. League is healthy, loans were made to help with certain financial acquisitions and will get get bought out like they always do or company will get bailed out.

HabsHockey* is offline   Reply With Quote
Old
07-15-2009, 09:02 AM
  #5
Canadiens1958
Registered User
 
Canadiens1958's Avatar
 
Join Date: Nov 2007
Posts: 12,072
vCash: 500
Normal

You will always have greed. Right now all the competing and smaller banks or lenders are try to figure out how to get their best share of the potential CIT Group carcass. They do it as a matter of course when the competition is financially healthy.

Canadiens1958 is offline   Reply With Quote
Old
07-15-2009, 09:25 AM
  #6
deandebean
Registered User
 
deandebean's Avatar
 
Join Date: Jan 2003
Location: Gatineau, câlisse
Country: uriname
Posts: 10,139
vCash: 500
CIT was a big lender under Gillett. But with the Molsons, it's a different story.

deandebean is offline   Reply With Quote
Old
07-15-2009, 09:28 AM
  #7
Ozymandias
#firetherrien
 
Ozymandias's Avatar
 
Join Date: Jun 2007
Location: Hockey Mecca
Country: Canada
Posts: 13,438
vCash: 500
Come on... The Habs are a high revenue grossing team, top 3 in the league, how the hell would they have trouble finding financing elsewhere...

Yet more non-sensical alarmist gibberish.

As for Jersey, they live in the land of financing and have many links (with Steinbrunner) to financial big shots.

The ones in trouble would be teams like the Sens, but their financial plan has been working really good since the league helped them and I don't see how they would have difficulty finding financing when backed up by a league that generates a high revenue stream, and has been profitable and always in the black since the new CBA.

And its not like this is nothing new, CitiGroup has had problems for a whole friggin year now. By now, most of these teams are probably looking elsewhere to get their financing.

Ozymandias is offline   Reply With Quote
Old
07-15-2009, 09:29 AM
  #8
number 11
Registered User
 
number 11's Avatar
 
Join Date: Jan 2008
Location: Montreal
Posts: 3,990
vCash: 500
team just sold for $630 million, I'm sure our owners have plenty of cash to go around.

number 11 is offline   Reply With Quote
Old
07-15-2009, 09:30 AM
  #9
wjhl2009fan
Registered User
 
Join Date: Nov 2008
Posts: 9,043
vCash: 500
Quote:
Originally Posted by Ozymandias View Post
Come on... The Habs are a high revenue grossing team, top 3 in the league, how the hell would they have trouble finding financing elsewhere...

Yet more non-sensical alarmist gibberish.

As for Jersey, they live in the land of financing and have many links (with Steinbrunner) to financial big shots.

The ones in trouble would be teams like the Sens, but their financial plan has been working really good since the league helped them and I don't see how they would have difficulty finding financing when backed up by a league that generates a high revenue stream, and has been profitable and always in the black since the new CBA.

And its not like this is nothing new, CitiGroup has had problems for a whole friggin year now. By now, most of these teams are probably looking elsewhere to get their financing.
I really can't see ottawa beeing in much trouble they should have no issues finding financing.

wjhl2009fan is offline   Reply With Quote
Old
07-15-2009, 09:33 AM
  #10
WestIslander
Registered User
 
WestIslander's Avatar
 
Join Date: Feb 2008
Location: Montreal, Quebec
Country: Canada
Posts: 2,365
vCash: 500
Don`t read into this too much!

Montreal is one of the richest and most successful franchises in the NHL and in professional sports.

When people say that the Leafs, Rangers and maybe even Red Wings are worth more, I laugh because I don`t see anyone lining up and paying $630,000,000.00 for them.

We are and will always be in good shape, even if we finish with 53 points this season, the place (Centre Bell) will still be jam packed and booming.

WestIslander is offline   Reply With Quote
Old
07-15-2009, 09:36 AM
  #11
Ozymandias
#firetherrien
 
Ozymandias's Avatar
 
Join Date: Jun 2007
Location: Hockey Mecca
Country: Canada
Posts: 13,438
vCash: 500
Quote:
Originally Posted by deandebean View Post
CIT was a big lender under Gillett. But with the Molsons, it's a different story.
True dude.

It as the 300 million $ loan he took out on the Habs, which will be repaid once the sell goes through in October/November.

I don't think the Molsons have any link with CiTiGroup. It would be kinda dumb to go ask for financing to an institution which has been in deep trouble for a whole year. Makes no sense.

What is it with people nowadays, always expecting catastrophes at every turn??

Too many of those farfetched movies like 2012 and Knowing (with Nicholas Cage).

Ozymandias is offline   Reply With Quote
Old
07-15-2009, 09:41 AM
  #12
Ozymandias
#firetherrien
 
Ozymandias's Avatar
 
Join Date: Jun 2007
Location: Hockey Mecca
Country: Canada
Posts: 13,438
vCash: 500
Quote:
Originally Posted by wjhl2009fan View Post
I really can't see ottawa beeing in much trouble they should have no issues finding financing.
Dude, reread what I wrote, that's exactly what I said.

You should have read further after the "but".

Ozymandias is offline   Reply With Quote
Old
07-15-2009, 09:43 AM
  #13
Kafka
Registered User
 
Join Date: Mar 2002
Location: Montreal
Country: Martinique
Posts: 5,123
vCash: 500
When an industry is making profits, there is no worries to have. But to dance, you need a partner, and some NHL teams are not making profits, meaning that the current model is probably not the right one. The salary cap was a great adjustment to prevent 5-6 teams from building UFAs empires (à la New York Yankees). Despite that, a few teams are dragging down the league.

The league as no choice IMO to take that occasion to bring back NHL teams in hockey cities. Winnipeg, Quebec are among those cities. Hamilton? Why not. It would give an additionnal chance to Ontarians to see for the first time since the White Album the Stanley Cup.

Kafka is offline   Reply With Quote
Old
07-15-2009, 09:49 AM
  #14
wjhl2009fan
Registered User
 
Join Date: Nov 2008
Posts: 9,043
vCash: 500
Quote:
Originally Posted by Ozymandias View Post
Dude, reread what I wrote, that's exactly what I said.

You should have read further after the "but".
Yes i should have sorry about that.

wjhl2009fan is offline   Reply With Quote
Old
07-15-2009, 09:51 AM
  #15
Agnostic
11 Stanley Cups
 
Agnostic's Avatar
 
Join Date: Jun 2007
Country: Canada
Posts: 8,412
vCash: 500
Oh dear. Let me see. Everyone knows that when a bank is in trouble the homes and businesses under their financing suddenly vapourize in the middle of the night.

The anonymous financial advisor is keeping himself anonymous to conceal his cluelessness.

If these are good paying customers then CIT will fight to keep them happy as I presume their goal will be to come out of bankruptcy protection with a profitable operation. Otherwise they will sell off these loans to other banks who will be more than willing to do business with our NHL friends. Who knows, lenders might be lining up now to pick up the pieces, and CIT may have to sweeten their deals to retain customers. But I guess if it were a good thing for the NHL that would not be a very good story.

I am surprised we still have a breathable atmosphere given the number of times the sky falls in a day.

Agnostic is offline   Reply With Quote
Old
07-15-2009, 09:51 AM
  #16
Ozymandias
#firetherrien
 
Ozymandias's Avatar
 
Join Date: Jun 2007
Location: Hockey Mecca
Country: Canada
Posts: 13,438
vCash: 500
Quote:
Originally Posted by Kafka View Post
When an industry is making profits, there is no worries to have. But to dance, you need a partner, and some NHL teams are not making profits, meaning that the current model is probably not the right one. The salary cap was a great adjustment to prevent 5-6 teams from building UFAs empires (à la New York Yankees). Despite that, a few teams are dragging down the league.

The league as no choice IMO to take that occasion to bring back NHL teams in hockey cities. Winnipeg, Quebec are among those cities. Hamilton? Why not. It would give an additionnal chance to Ontarians to see for the first time since the White Album the Stanley Cup.
In the next CBA negociations, the players won't really have a choice but to continue with the cap system. The league will have to compromise on other things. As they've already compromised on UFA age and RFA offer sheets, the next logical step, in the whole process of becoming partners in profit, will be to force the league to ramp-up revenue sharing, which is still not adequate. The revenue sharing format should also be changed and based on profit, not on total revenues like it is right now.

Ozymandias is offline   Reply With Quote
Old
07-15-2009, 09:57 AM
  #17
sandman08
Registered User
 
sandman08's Avatar
 
Join Date: Dec 2003
Location: Hyderabad, India
Country: India
Posts: 2,382
vCash: 500
Quote:
Originally Posted by Ozymandias View Post
You have it down to a T, my dear friend.

Couldn't have said it better myself.
wait.. so you mean i didnt have to really read that super long post?! damn it!

on topic.. i'd say let it all playout before worrying about things.. too many variables at this point in time, and of those teams mentioned it'd be the preds who have the most to lose, melnyk is or was worth over a billion not too long ago and w/ a brand new rink/stadium the devils should fare fine, and the habs as previously stated are a high revenue club so they wouldnt be a team that would suffer from probs with getting financing..

sandman08 is offline   Reply With Quote
Old
07-15-2009, 10:02 AM
  #18
Ozymandias
#firetherrien
 
Ozymandias's Avatar
 
Join Date: Jun 2007
Location: Hockey Mecca
Country: Canada
Posts: 13,438
vCash: 500
Quote:
Originally Posted by sandman08 View Post
wait.. so you mean i didnt have to really read that super long post?! damn it!

on topic.. i'd say let it all playout before worrying about things.. too many variables at this point in time, and of those teams mentioned it'd be the preds who have the most to lose, melnyk is or was worth over a billion not too long ago and w/ a brand new rink/stadium the devils should fare fine, and the habs as previously stated are a high revenue club so they wouldnt be a team that would suffer from probs with getting financing..
You don't read books and have never went to the University, right? And if you did, how the hell did you ever manage reading through all the books???

I mean, if you find a post of 12 lines to be long, you might consider finding new hobbies that don't involve reading, ahem.

Ozymandias is offline   Reply With Quote
Old
07-15-2009, 10:58 AM
  #19
sandman08
Registered User
 
sandman08's Avatar
 
Join Date: Dec 2003
Location: Hyderabad, India
Country: India
Posts: 2,382
vCash: 500
Quote:
Originally Posted by Ozymandias View Post
You don't read books and have never went to the University, right? And if you did, how the hell did you ever manage reading through all the books???

I mean, if you find a post of 12 lines to be long, you might consider finding new hobbies that don't involve reading, ahem.

sandman08 is offline   Reply With Quote
Old
07-21-2009, 07:06 PM
  #20
goalchenyuk
Registered User
 
goalchenyuk's Avatar
 
Join Date: Oct 2003
Location: montreal
Country: Vatican City State
Posts: 8,461
vCash: 500
Turmoil at CIT could ripple through NHL and Habs

financial problems of the CIT could affect few teams of the NHL and the Habs


http://www.theglobeandmail.com/repor...rticle1217296/

http://pouliot.argent.canoe.ca/2009/...son_devrait_ap

" La famille et ses partenaires doivent en effet assumer la dette de 350 M$ CAN attachée au Canadien et à son amphithéâtre.

Or, cette dette serait actuellement au centre d’importantes discussions, avec CIT comme acteur de premier plan.
Nous avons appris que l’emprunt, ou à tout le moins sa majeure partie, faisait l’objet d’une clause de refinancement en cas de vente du club et de l’amphithéâtre.

Cette clause permet au syndicat bancaire en place de demander à ravoir son argent. "

i will let someone better in english translates the mean points of the article .

goalchenyuk is offline   Reply With Quote
Old
07-22-2009, 07:57 AM
  #21
eyeball11
Registered User
 
Join Date: Jun 2008
Posts: 13,051
vCash: 500
Quote:
Originally Posted by WestIslander View Post
Don`t read into this too much!

Montreal is one of the richest and most successful franchises in the NHL and in professional sports.

When people say that the Leafs, Rangers and maybe even Red Wings are worth more, I laugh because I don`t see anyone lining up and paying $630,000,000.00 for them.

We are and will always be in good shape, even if we finish with 53 points this season, the place (Centre Bell) will still be jam packed and booming.
You do realize those teams would have to be for sale first, right?

eyeball11 is offline   Reply With Quote
Old
07-22-2009, 08:43 AM
  #22
montreal
Moderator
Go Habs Go
 
montreal's Avatar
 
Join Date: Mar 2002
Country: Greenland
Posts: 26,152
vCash: 500
The rumor I heard at work was that CIT was going to be private funding to bail them out (I work for citigroup) so this could be all about nothing.

montreal is offline   Reply With Quote
Old
07-22-2009, 08:55 AM
  #23
Turboflex*
 
Turboflex*'s Avatar
 
Join Date: Feb 2007
Posts: 4,152
vCash: 500
This won't be a problem, looks like investors are stepping in to keep the company afloat for a while.

Even if CIT went bankrupt and was liquidated, loans to NHL teams wouldn't be the problem since they are solid, performing loans, someone else would take those onto their books (likely at a pretty nice price in liquidation).

There's a lot more bad non-performing loans on the books that are bringing down the company and making it difficult for it to get credit.

Turboflex* is offline   Reply With Quote
Old
07-22-2009, 11:12 AM
  #24
HCH
Registered User
 
Join Date: Dec 2003
Location: The Wild West
Country: Canada
Posts: 5,076
vCash: 500
While the CIT situation may not directly affect the Habs, the contraction in the credit markets and the financial services industry could have a significant affect on some teams and therefore league operations.

This credit crunch has hit industries much larger than the NHL so to assume that the league is immune is kind of like whistling past the graveyard.

Three weeks ago the US Federal Reserve had said that CIT was well capitalized to carry on business going forward. One week ago, the company had to receive its second multi-billion dollar injection to keep the doors open. If the Federal Reserve can misrepresent the viability of a financial services company, don't you think the NHL can do the same with regard to its operations.

This is a league that faces huge financial challenges but to even hint at that in public would be suicide. There is huge pressure to maintainn the illusion of stability and growth. Struggling leagues see sponsorship disappear along with ticket sales.

The league needs companies like CIT to continue to offer financing to the various teams but bank lending is contracting. Many owners are operating their franchises on borrowed money. In some cases credit will not be available and where it is, the terms may be a lot different.

The commercial paper market has evaporated. In the past, that allowed companies (ie. NHL owners) to borrow money for extremely low rates. With access to that money all but gone, companies have had to turn to longer term loans and the bond market for capital. That is a much more expensive proposition and when you are operating on razor thin margins it is enough to throw you into the red.

The problems with the financial services markets are a big bump in the road. Franchises like the Habs are likely okay but we need a league to play in and that league could look much different in a couple of years if economic conditions don't improve.

It's just that no one wants to (or can afford to) admit it.

HCH is offline   Reply With Quote
Old
07-22-2009, 04:21 PM
  #25
montreal
Moderator
Go Habs Go
 
montreal's Avatar
 
Join Date: Mar 2002
Country: Greenland
Posts: 26,152
vCash: 500
Quote:
Originally Posted by Hub City Hab View Post
The commercial paper market has evaporated. In the past, that allowed companies (ie. NHL owners) to borrow money for extremely low rates. With access to that money all but gone, companies have had to turn to longer term loans and the bond market for capital. That is a much more expensive proposition and when you are operating on razor thin margins it is enough to throw you into the red.
Not true at all, I work with commercial paper, volume is good and steady and prices are back to par and above.

montreal is offline   Reply With Quote
Reply

Forum Jump


Bookmarks

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 11:44 PM.

monitoring_string = "e4251c93e2ba248d29da988d93bf5144"
Contact Us - HFBoards - Archive - Privacy Statement - Terms of Use - Advertise - Top - AdChoices

vBulletin Copyright ©2000 - 2015, Jelsoft Enterprises Ltd.
HFBoards.com is a property of CraveOnline Media, LLC, an Evolve Media, LLC company. ©2015 All Rights Reserved.