Tag: Dallas Stars sale

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.

Bankruptcy court approves Dallas Stars’ bidding process

1 Comment

Dallas Stars fans can be forgiven if they look back at Sept. 22, 2011 as a day in which the franchise closed the book on a major chapter in its history and turned the page to a new era.

Earlier today, we passed along the heartwarming news that the team honored its retired franchise centerpiece Mike Modano by signing him to a symbolic one-day contract, making sure that he retires as a Dallas Star. While the team completely waved goodbye to that error with that kind gesture, the franchise has reason to look forward to a brighter future for the first time in years.

That’s because their ownership situation is getting less and less murky. The team received the green light to exist in a “business as usual” state despite filing for bankruptcy earlier this week and today marked another important court date. Various sources report that the same U.S. Bankruptcy Court in Delaware approved the bidding procedures proposed by the Stars, the NHL and potential new owner Tom Gaglardi on Thursday.

Former PHT editor Brandon Worley confirms that the deadline for bids remains Oct. 22, with a deadline for objections to those bids set for Oct. 25. If there are multiple bidders, then an auction will be scheduled for Nov. 21, with the winner expected to be announced on Nov. 23.

So far, Gaglardi is the only confirmed suitor, but Worley elaborates on the process and some other potentially interested parties.

For a bid to be considered a “qualifying bid”, the potential buyer must be pre-approved by the NHL and the courts and the bid must be at least $10 million more in worth than that of Gaglardi’s bid, which is valued at around $260 million. If more than one bid is approved by the court, then an auction will take place on November 21, with the winning bidder being confirmed in a combined hearing on November 23.

Currently, there have been no bids presented to the court but we’ve learned that both Doug Miller and Chuck Greenberg are certainly interested in making a bid if at all feasible. I wouldn’t expect there to be a bid made until just before the deadline, based on the complexity of the sale agreement.

Worley claims that a new owner should be in place by Thanksgiving, although different legal processes (including gaining approval from the NHL’s Board of Governors, which might just be a formality) might delay it from becoming 100 percent official. That being said, all signs point to the Stars getting a new owner – possibly before 2012 even begins.

Dallas Stars sale takes next step in bankruptcy court


While the team itself wraps up work at Prince Edward Island, the Dallas Stars’ most important battles will take place in the courtroom rather than along the boards.

Today marked another key step in that process, as the bankruptcy court proceedings began with a rather important thing determined: the Stars will, in fact, be able to function as normal even as they go through the bankruptcy process. It will be business as usual, with the Dallas Morning News confirming that 12 motions were passed that permit the team to keep the lights on (both literally and figuratively).

That’s a crucial part of the process after the team officially filed for bankruptcy last week as part of a plan to sell the franchise, which is currently being controlled by creditors who took over once Tom Hicks’ financial issues eliminated his ability to run the team.

The next step is an even bigger one: a hearing involving the bidding process for the team will take place on Thursday. That will give bidders a 30-day deadline to make their attempts to own the Stars, which means that they must submit their bids by Oct. 22. Katie Hairopoulos explains that the the proposed auction date would then be Nov. 21, which would make the goal of changing ownership before 2012 seem fairly reasonable. (Keep in mind that the new owner(s) would need to be approved by the NHL Board of Governors, along with other steps that might delay or even halt the process.)

While there are certainly some elements that are still in the air, it’s hard to deny the feeling of optimism permeating the potential deal. Frontrunner Tom Gaglardi already announced the legal team that will represent him in the bidding, while Business Week reveals that former Texas Rangers co-owner Chuck Greenberg may indeed get involved in the process (which has been rumored for some time). Check out this post for some speculation regarding other possible owners, including Doug Miller, who owns the CHL’s Allen Americans.

Again, though, Gaglardi seems like the top contender. Dave Shoalts of the Globe & Mail elaborates on why he might not face very serious opposition.

The offer will also serve as a stalking-horse bid for the bankruptcy court, which means other parties can file a higher bid with the court. However, Stars insiders do not expect any competing bids and Gaglardi may take control of the team in the next two months if he gets the expected approval from the NHL’s board of governors.

Once Gaglardi is in charge, Stars fans can expect a strong marketing push to win them back, as the team’s ticket sales eroded badly in Hicks’ final years. There may also be a new president on the way, since current president Tony Tavares, a veteran NHL executive, was appointed by the banks to look after the team during the bankruptcy and sale.

While GM Joe Nieuwendyk claims that the team wasn’t affected by ownership issues, it clearly made it that much easier for Brad Richards to decide to leave town. (I’d actually argue that the Stars might be better off in the long run because of Richards’ age and the fact that they missed the playoffs for three straight seasons with him on their roster, but that’s a debate for another day.)

Nieuwendyk can say all the right things about the team’s health without an owner, but with the specter of budding star Jamie Benn’s pending restricted free agency and the team’s struggles at the box office, a deep-pocketed new owner would be a huge boost for the Stars. While a lot can change in the next week and months, it’s starting to look like the Stars will get their new owner and a steadied direction in the near future.

Report: Dallas Stars could have a new owner in place by the end of the year


While Dallas Stars GM Joe Nieuwendyk claims that the team hasn’t been affected by its ownership issues, there should be little doubt that the franchise would prefer to resolve that situation as soon as possible. The good news is that the team still has plenty of value in the eyes of the hockey and business world, so it might just be a matter of time.

The latest slew of reports from Friday indicate that things could be wrapped up rather soon. The reports indicate that frontrunner Tom Gaglardi’s bid to own the Stars was officially submitted on Friday, although details about the exact size of that ownership bid have not been revealed. (Gaglardi initially submitted it in late July, but Defending Big D explains that league lawyers looked over the terms during the month of August.)

The process still has some way to go before ownership changes hands and it’s not certain yet that Gaglardi will be the owner once the ink dries. The Stars must first go into bankruptcy court in the near future, with the hearing expected to take place at a Delaware district court on September 14.

(Gerry Fraley of The Dallas Morning reveals that Delaware is the location of choice for such hearings “because of its business-friendly climate and the efficiency of its courts in these matters.” Fraley points out that the troubled Los Angeles Dodgers had their own hearings in Delaware during the month of July.)

Again, while Gaglardi might be considered a frontrunner for the sale, there are other potential bidders. Here are more details from ESPN’s Mark Stepneski.

Although Gaglardi would have a signed purchase agreement it doesn’t mean he is guaranteed to be the club’s new owner. His offer would be what is considered a stalking horse bid. Other potential bidders will be given a chance to top it in the bankruptcy proceedings.

Among the bidders who could be in the mix:

*Irving businessman Billy Quinn, who is the Managing Partner of Natural Gas Parnters

*Allen Americans owner Doug Miller

*Former Texas Rangers CEO Chuck Greenberg

Stepneski passes along word from Nieuwendyk, who said that the sale should be completed before Christmas time. Of course, the NHL would also need to approve the sale, but various reports indicate that shouldn’t be a problem. The Dallas Business Journal points out that the sale could actually wrap up in about a month if there are no other bidders, but that seems unlikely in this situation.

Either way, the consensus indicates that the Stars are approaching the light at the end of the tunnel. That being said, if you’ve followed NHL ownership situations before, you probably realize that it’s rarely safe to assume anything until a new owner is officially approved and announced. We’ll keep you informed about this situation as September 14 rolls around and the sale (hopefully) nears its completion.

Blues set August 22 deadline for team sale bids

Dave Checketts

There seems to be two general categories for NHL team sales lately: desperate (Phoenix, Atlanta) and seemingly inevitable (Dallas, St. Louis and Buffalo). That’s not to say that the latter group of sales lack drama or tension, but the Stars, Blues and Sabres seem like they’re able to attract legitimate interest even if the process isn’t always very smooth.

In the case of the Blues, it seems like they are at least slightly at the mercy of what happens with the Stars. Jeremy Rutherford of the St. Louis Post-Dispatch reports that the group handling the Blues’ sale expects there to be some overflow from the parties who will lose the bidding war for the Stars, although that might be a slight problem since the deadline to make a nonbinding bid for the Blues has been set for August 22. Rutherford reports that this deadline could allow a purchase agreement to be in place by “mid-September.”

“We’ll review (the offers), make judgments, make comparisons and then we’ll go back to everyone and give them a reaction to their proposal,” Game Plan’s Robert Caporale said. “We don’t want to slow down the process, but until we get these detailed proposals, it’s hard to predict how long it will take to get a binding contract with a buyer. But we hope that we could get it done within a couple of weeks” of Aug. 22.”

Once a purchase agreement is in place, the sale would move into the final stages, which includes NHL approval. The league’s next Board of Governors’ meeting is scheduled for Sept. 20, followed by one in December. If the sale is ready for approval in between those two meetings, it’s possible the governors could vote via a conference call.

Game Plan LLC – the company handling the sale – reportedly sent out 10 packets to parties who have expressed an interest in the Blues, although it’s important to note that it doesn’t mean all 10 parties should be considered legitimate suitors. Things could get a bit more complicated if the Stars sale isn’t completed by August 22 since, again, there might be some spurned suitors who would move from trying to acquire the Stars to the Blues.

Here are a few dates that might be of interest in this situation, even if there’s no guarantee that benchmarks will be met in time to fulfill them.

August 22: Again, this is the reported deadline for groups to make “nonbinding” bids for the Blues.

September 20: The NHL Board of Governors meeting will take place, so it would be ideal to get the new owner in place by then so the BoG could vote to approve or disapprove that new owner.

October 8: The Blues’ season opener isn’t a hard deadline, but it might be nice to get a new owner in place by then anyway.

“Undisclosed deadline”: Current Blues owner Dave Checketts needs to get this deal done sooner rather than later after he received an extension to pay back the $120 million loan he took out with CitiGroup to buy the team.

Obviously from that timeline, a lot could happen in a very short time frame, although these situations have a tendency to hit a wall or two here and there. The one thing that might expedite the process is the possibility that a group might circumvent the bidding process by meeting the asking price for the team.

“We have not agreed to do that, but at least it’s an option,” Caporale said. “We’d like to give everybody a chance. (But) if the person comes up with a price that’s acceptable to everybody and willing to sign an agreement, it speeds up the process.”

Stay tuned for updates regarding a franchise that some are calling a possible “sleeper team” in the Western Conference.