Tag: Dallas Stars ownership situation

Los Angeles Kings v Dallas Stars

Report: It’s Tom Gaglardi or bust for sale of the Stars

The Dallas Stars sale is a one man race as Vancouver businessman Tom Gaglardi is reported to be the only person to put a bid in for the team. Forbes.com’s Mike Ozanian reports that while the process for bids on the team was open to anyone willing to throw in on them, Gaglardi was the only guy to do so.

The process of selling the team is an exhaustive one but one that has a simple and eventual finish. While the team will be put through the bankruptcy process thanks to former owner Tom Hicks being terrible about managing his properties, the eventual end game here is that Gaglardi will buy the team and allow the Stars to operate like a normal franchise again instead of like the apprentice to the Coyotes.

The final sale price for the Stars is set to be around $260-$270 million which will take care of their debts, Hicks’ other issues, as well as half the price for American Airlines Arena where the Stars play. That’s a lot of hooch for a hockey team but in the case of the Stars, getting their ownership stuff figured out and allowing them to operate normally should help bring the rabid Stars fanbase back.

PHT Morning Skate: Jaromir Jagr meets his own peanut butter once again

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PHT’s Morning Skate takes a look around the world of hockey to see what’s happening and what we’ll be talking about around the NHL world and beyond.

Jaromir Jagr had his own jar of peanut butter back in his Pittsburgh days. Randy Miller of Flyers Files brings it back to him to get reacquainted with an old friend. (Flyer Files)

Tyler Dellow is continuing to dig deep on the Stars’ financial numbers and finding more interesting stuff. (mc79hockey)

Remember when Wayne Gretzky met Kirk Douglas? Well now you can. (Greatest Hockey Legends)

More Halloween fun: Phil Kessel dressed up as a lion sounds as silly as it looks. (Pension Plan Puppets)

Roman Horak is drawing rave reviews in Calgary as a rookie. Why can’t the Rangers find guys like that? (Calgary Sun)

The Caps are changing their lines up. A couple losses will do that. (CSNWashington.com)

The Blackhawks will be bringing their dads with them on the road. You hear that Patrick Kane? Straighten up. (ESPN Chicago)

Shawn Horcoff is the Oilers captain and the veteran helping to lead the youth in Edmonton. (Edmonton Journal)

Finally, Corey Crawford could be a heck of a wrestler if he gave it a shot someday. He’d rather just not give up cheap goals to Patric Hornqvist though.

Nieuwendyk says ownership issues aren’t affecting the Stars

2011 NHL Entry Draft - Round One

The Stars will have plenty of adversity to face this season. They’ll look to replace their leading scorer and top-line center. They’ll look to rebound from a season that saw them waste a playoff opportunity on the final day of the season. And they’ll look to do it all while breaking in a brand new coach. All the sudden, the naysayers and doomsday predictors look like they may have a point. It looks like it could be an uphill battle for the boys from Big D.

But one thing that won’t hamper the Stars is their precarious ownership situation. It’s no secret that Tom Gaglardi has every intention of purchasing the Stars as soon as he can get approval from the courts and the debtors that are owned money in the bankruptcy case. All parties involve assume the sale will be settled sometime during the first half of the NHL season—in ownership time, that’s not bad at all. Just ask the Phoenix Coyotes. But until then, there was some concern that GM Joe Nieuwendyk and the Dallas Stars front-office would not be unable to make the moves they wanted to because of the delicate ownership situation. The fear was that the team wouldn’t acquire any additional payroll before the sale was completed and a new owner was in place.

Joe Nieuwendyk is here to ease all fears. GM Nieuwendyk told Fan 960 in Calgary that the drawn-out sale process hasn’t affected the Stars and what they’ve wanted to do this offseason (via ESPN Dallas):

“…Obviously we’re going through this sale process and it is taking probably longer than any of us had anticipated. It is moving. I know that speaking with the league this thing will get resolved this season, prior to Christmas. It’s just been a long process. The good thing is it hasn’t taken away from anything what our team has been able to do. We increased our budget and went after players that could fill roles on our team and help us. We added seven players this summer and I feel really good about our team. We’ve been able to keep our off-ice issues away from the locker room and I think the guys are excited about the upcoming season.”

There’s a difference between a team having their hands tied and being fiscally responsible. No team with an internal budget was going to be able to afford Brad Richards and his contract demands. Not only was it an exorbitant price tag for one player, but it also would have limited the resources for management to piece together a competitive 23-man roster. The Stars weren’t the only team that was out of the Brad Richards sweepstakes before July 1.

Just because the Stars failed to re-sign Richards doesn’t mean that they sat on the sidelines and watched as other teams snatched up free agents. All in all, the Stars acquired six new players to improve the team’s overall depth. None of the newcomers are going to make fans forget about Brad Richards, but they should help the Stars roll four lines for the first time in years. Michael Ryder, Vernon Fiddler, Sheldon Souray, Radek Dvorak, Adam Pardy, and Jake Dowell all were acquired by the Stars to help transform the Stars into the two-way team that new head coach Glen Gulutzen envisions next season.

The bad news is that even though the Stars increased their payroll this season, they still have the 25th ranked payroll in the NHL (they’ll most likely be 26th after Winnipeg re-signs Zach Bogosian). While there are contenders pressed firmly up against the salary cap, the Stars have a full roster and they’re still $14.4 million under the limit. Each team in the competitive Pacific Division has a more expensive payroll—even the budget conscious Anaheim Ducks and Phoenix Coyotes. Again, it will be an uphill battle this season.

GM Joe Nieuwendyk may say that he’s been free to conduct business as usual—but fans in Dallas have to hope the budget will increase once the new owner is in place.

Tom Gaglardi submits bid to NHL to purchase Dallas Stars


Vancouver businessman Tom Gaglardi has been the front-runner to purchase the Dallas Stars for quite some time. Friday, Gaglardi took the next step in his quest to buy the Stars from a group of lenders led by Monarch Investments by submitting his proposal to the NHL for approval. By no means does this mean the sale is a done deal—but it’s a necessary step in the process for Gaglardi to finally acquire the team. If no news is good news, then this is great news.

Unfortunately, the sale isn’t as simple as a seller and buyer agreeing to terms and exchanging cash. If it were that easy, the deal would have been done in April when he first acquired the exclusive negotiating rights for the Stars. As Mike Heika of the Dallas Morning News explains, there are plenty of people who are owed money and want a piece of the pie:

“With more than 40 lenders who have legal rights to the Stars, one of the key contentions of the sale will be who gets paid what, as well as who gets paid first. The sale price is not expected to cover the debt, so some lenders will not get paid back.”

“’In a traditional sale, you have a seller who is trying to negotiate with a buyer, and you have traditional sale practices. But this isn’t a traditional sale,’ said one source. ‘You have a group of sellers who have different opinions, and that really means you don’t have a seller, per se. Into that vacuum has stepped a lot of lawyers, and that has made the process very complicated.’”

First, let’s reiterate that this is good news for people who want to see a deal get done. Once the Stars’ sale is behind the organization, they’ll be able to look to the future, set a realistic payroll budget, and once again focus on winning games on the ice. Over the last season, assembling the best team possible has taken a backseat to the ownership issues that have dictated the team’s direction (most notably with Brad Richards). This is a small step forward in the right direction.

At the same time, the situation is looking at a bunch of attorneys and debtors looking to get as much money as possible and a proposal that does not plan on paying all of previous debts. If the NHL approves the proposal, the next step is for the 40 lenders (and their lawyers) to fight in bankruptcy court to receive the best return on their previous investment possible. If the Phoenix Coyotes situation taught us anything, any time “NHL” and “bankruptcy court” are mentioned in the same sentence, it’s best to proceed with caution. Obviously, this is a very different situation—but there are still plenty of moving parts and interested parties for the NHL to appease.

Another point to consider within the context of the bankruptcy hearings is that all other potential ownership groups will be able to submit bids over the course of the proceedings. No matter what figure Gaglardi’s proposal includes, whenever there are names like Texas Rangers CEO Chuck Greenberg and Dallas Mavericks owner Mark Cuban involved (among others), there are bound to be a few fireworks if they’re still interested in the NHL franchise.

Just what the NHL needs: more court cases and legal actions surrounding one of their teams. For the sake of every Stars fan alive, hopefully today’s announcement is the beginning of the end of this drawn-out sale.

Convenient timing? A buyer for Dallas Stars emerges after not dealing Brad Richards

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Yesterday the Dallas Stars stood pat and opted to not trade their top centerman Brad Richards. The commitment to Richards was stunning considering that Richards is an unrestricted free agent at the end of the season and with Dallas’ ownership being in a league-watched bungle, their ability to offer him a long term, financially lucrative deal is severely hampered.

A funny thing happened on the way toward the playoffs for the Stars today, though, as a report emerged from Ken Campbell of The Hockey News saying that a new name has emerged from the darkness to express interest in buying the Stars. Owner of the Central Hockey League’s Allen Americans, Douglas Miller, is reportedly interested in buying the Stars and may have an offer on the table for the team already.

…Miller’s offer is believed to be for about $110 million cash, but it would likely be publicly announced as somewhere in the $225 million range. That’s because in addition to the purchase price, Miller would assume about $20 million in existing debt, most of which is owed to the NHL for the advancement of television and revenue sharing money to help keep the Stars afloat. Also built into the purchase price would be four years of losses estimated at about $25 million per year.

According to a source with knowledge of such matters, the Stars have lost between $26 million and $28 million over the past 12 months. NHL commissioner Gary Bettman insisted at his All-Star Game news conference in January that the league is not funding the Stars, but multiple sources have confirmed the Stars have been using advances on television and revenue sharing money and have required more than one advance to continue to pay the bills as a new owner is sought to replace Tom Hicks.

With that sort of investment into the team, it would go a long way into curing the ills of the Stars and the ultimate failings of Tom Hicks. If it’s something that could be completed by July 1, it’s also the kind of financial dedication that could help keep Brad Richards in Dallas.

As with all things Dallas, there’s the specter of having Mavericks owner Mark Cuban having interest, something to which Campbell’s piece hits on. Cuban’s had interest in the past of buying the Pittsburgh Penguins, an ovation that Cuban had as part of a group with Dan Marino and other Pittsburgh-based investors. That interest didn’t pan out and Cuban went back to hanging on to the Mavericks and getting half the revenues from playing at American Airlines Arena in Dallas.

The one lure to owning the Stars for Cuban would mean that he’d control all sports revenue that went through the arena if he owned the Stars as well. Of course, with the NHL being a big of a bear to make it work financially for some owners, Cuban’s been reticent to get involved in NHL wrangling.

As always with these reports, they come shrouded in mystery and questions about the validity of everything involved. For now though, Dallas Stars fans have a reason to be hopeful that they’ll get new ownership soon and a reason to think that Joe Nieuwendyk didn’t make a mistake by not trading Brad Richards.