Ted Leonsis

Leonsis reportedly refinances Caps debt with $100M loan


Some exciting financial news that’s sure to get you out of your chair:

Washington Capitals owner Ted Leonsis has reportedly refinanced his hockey club’s debt with a sizeable loan, according to Forbes.

Leonsis, 56, is the founder, majority owner, chairman and CEO of Monumental Sports & Entertainment, a group that owns the Capitals, the NBA’s Washington Wizards, the WNBA’s Washington Mystics and the arena all three teams call home — the Verizon Center.

As for Leonsis’ Caps-related debt and loan, here’s more from Forbes’ Mike Ozanian:

Sources have told me that Ted Leonsis refinanced the debt on his hockey team last month with a $100 million package led by Citigroup. The loan was oversubscribed, meaning more people wanted to buy the debt than was available. And the refinancing was bigger than the previous loan, thereby increasing the amount of debt on the hockey team.

Leonsis bought the Capitals for $85 million in 1999 and we valued the team at $250 million last November.

Ozanian notes the NHL in general appears to be taking on more debt, something PHT wrote yesterday in a report that the league had increased its credit facility.

According to Bloomberg, the facility was raised from $400 million to $600 million:

The league also received a better rate on the agreement with Citigroup Inc. (C), which was completed last month. The new facility is priced at the London interbank offered rate, or Libor, plus 250 basis points. The previous facility was $400 million at Libor plus 300 basis points.

Professional sports leagues create loan pools by using collateral such as national broadcast contracts to secure credit at better terms than most teams could individually.

The NHL declined to comment on the report.

Kassian suspended without pay, placed in Stage 2 of Substance Abuse Program

Anaheim Ducks v Vancouver Canucks
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Zack Kassian may have avoided major injuries stemming from his Sunday car accident, but it likely sent the signal that he may need help.

The response: he was placed in Stage Two of the Substance Abuse and Behavioral Health Program (SABH) of the NHL and NHLPA on Monday.

According to the league’s release, Kassian “will be suspended without pay until cleared for on-ice competition by the program administrators.”

Speaking of being suspended without pay, here’s a key detail:

The 24-year-old ended up with a broken nose and broken foot from that accident. The 2015-16 season was set to be his first campaign in the Montreal Canadiens organization after a tumultuous time with the Vancouver Canucks.

Kassian spoke of becoming more mature heading to Montreal, but the Canadiens were critical of his actions, wondering how many wake-up calls someone can get.

In case you’re wondering about the difference between stage one and two:

Add Lecavalier to list of expensive Flyers healthy scratches

Vincent Lecavalier

Are the Philadelphia Flyers aiming for some sort of record when it comes to expensive (potential) healthy scratches?

While lineups are obviously subject to change, CSNPhilly.com notes that Vincent Lecavalier appears to be among a rather rich group of Flyers who are expected to sit during their season-opener.

Also likely to be in street clothes: Sam Gagner and Luke Schenn.

That’s $11.3 million in cap space rotting on the bench.

“I really don’t know what to say,” Lecavalier said. “I’ll practice hard and be ready when they call me up.”

The CSNPhilly.com quotes from Lecavalier, Gagner and Schenn only get sadder from there, a reminder that there are human beings attached to these numbers – whether you focus on disappointing stats or bloated salaries.

Flyers fans with the urge to reach for an Alka-Setzler can at least take some comfort in knowing that the team will see $6.8 million in savings after this season, as both Gagner and Schenn are on expiring deals.

It could be a long season, though, and this Lecavalier headache may not truly end until his contract expires following the 2017-18 campaign.