Tag: team sale news

Jerry Reinsdorf

More updates on Coyotes and Stars sales

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It seems like each of the ownership situations pending around the NHL are destined to be dragged out as long as possible. The Atlanta Thrashers sale and relocation moved remarkably quickly—unfortunately the situations in Dallas, St. Louis, and Glendale aren’t going down quite as smoothly. Everyday there seems to be a new update, wrinkle, potential problem, or cause for hope while fans in each city eagerly await their team’s future to be settled. Today, there was news that affects all three cities and their sale process: but still nothing pending for the immediate future.

In Glendale, there’s news that there are two buyers that are interested in submitting offers for the team to the Glendale City Council when they reconvene in a few weeks. That much we already knew. It’s already been widely assumed that one of the mystery groups is led by Jerry Reinsdorf (of course). Now there’s word that both offers will come fully equipped with opt-out clauses to protect any future owner as part of the sale.

Why is this news? In the past, members of the Glendale City Council have been adamantly opposed to any offers that included an opt-out clause. From their position, they’re afraid of giving government subsides only to see an out-of-town businessman bolt at the first sign of trouble. If they’re going to make a deal, they want assurances that the team will be in Glendale for the long-haul. Their position is completely understandable. Then again, it’s also understandable that any businessman would want to protect his interests in the event that things go sideways.

The folks over at Five For Howling must be getting sick of the never-ending ownership/sale mess surrounding their team, but at least Jordan Ellel is taking a pragmatic look at the newest development and the reality of a potential out-clause:

“No, as much as I would love for a potential owner to swoop in and make a guarantee that the team would stay for the entire 30-year lease term (a la Hulsizer), an out clause is completely reasonable at this stage. The fans have shied away for a variety of reasons, but if an owner steps in and gives a time frame for turning things around and this city cannot do it; well, then the team should probably move to be frank.

However, so long as the ownership group isn’t the cheapest group known to man, the team should remain very competitive and a good value for your entertainment dollars. Given a modicum of quality marketing and continued improvement obtaining local sponsors, then meeting whatever “growth” metrics will be used to trigger an out clause should not be an issue. Of course, we all know how fickle Phoenix fans can be and true growth will only happen if they make a playoff run that doesn’t end in seven or fewer games (and hey, if the NBA stays locked out that will only help as well).”

It’s hard to disagree with the logic. If the team is given a new owner that shows a reasonable amount of commitment and the fans still don’t show up to Jobing.com Arena, then it’s on the fans—not the owner.

One thousand miles to the east, the Dallas Stars are dealing with their ownership situation. Slowly but surely, Tom Gaglardi is continuing in his process to buy the Stars from the various creditors who currently hold debts. Mike Heika of the Dallas Morning News gives an update:

“Which brings us to Gaglardi, and where his bid is. Several people I have talked to said he is in New York trying to push through all of the paperwork that needs to be pushed through, and this is a difficult time to do that. In addition to lawyers, there also are financial people involved in drawing up loans, and this is a volatile time in the financial market.”

If everything goes to plan, Gaglardi’s bid will go through and the offer will be seen by a judge in bankruptcy court. There had been reports that two of the groups that were interested in buying the Dallas Stars were now throwing their name into the hat for the St. Louis Blues—which may still be true. However, any assumptions that Gaglardi was hedging his bets and negotiating a deal with for the Blues behind the scenes should be put to rest immediately. Put simply: Gaglardi isn’t interested in the Blues.

Neither circumstance is even remotely close to conclusion. Today’s events are simply the next step in situations that have plenty of moving parts. One day they’ll both be done and we can go back to talking about the actual teams that reside in Dallas and Arizona.

Rumors of Buffalo Sabres sale still strong and why it could be a great thing for the team

Michael Grier, Paul Gaustad

Usually, when rumors of the sale of a small market team surface, it’s usually seen as bad news or neutral. Yet in the case of the rumors of wealthy person (and hockey fan) Terry Pegula potentially buying the Buffalo Sabres, many think that the cost conscious club could really benefit from Pegula’s deep pockets and considerably deep passion for pucks.

Most recently, Sabres management tried to shoot down the rumors, but if you believe Ken Campbell of the Hockey News, it’s more a matter of semantics than anything else.

Campbell writes that an announcement of the team sale is expected to happen “sometime in late December or early January.” He wrote that Gary Bettman may even introduce Pegula to the NHL ownership group when they meet during the board of governors meetings on December 6 and 7.

The fact that the Buffalo Sabres are throwing cold water on a THN.com report that billionaire Terrence Pegula has signed a letter of intent to purchase the Buffalo Sabres for $150 million could mean a number of things.

Most likely, it means the $150 million figure is not exact, but make no mistake, Pegula wants the Sabres and the purchase price will be in that range, perhaps even lower than $150 million. Does it mean he will definitely buy the team? No, he has simply signed an intention to purchase, which means he still has an out, but the team cannot be sold to anyone else.

As Campbell wrote and Joe discussed before, Pegula’s presence as an owner could indeed be a great thing for the Sabres. While it’s easy to note that Chris Drury and Daniel Briere received lavish contracts – deals that only Briere seems occasionally capable of justifying – the fact of the matter is that Buffalo had a great thing going in those early post-lockout years and currently cannot seem to surround gifted goalie Ryan Miller with sufficient talent. Free agency isn’t the only way to build a team, but having someone like Pegula who would likely be willing to spend big bucks on high-end talent could be huge for the team and fans alike.

So what does all this mean? It can be nothing but good news for the Sabres. That’s because Pegula is a hockey guy through and through and with a net worth of about $3 billion – he’s the 110th richest man in the United States – has very deep pockets. His wife is from a suburb of nearby Rochester and he lived in Orchard Park for a brief period.

He and his wife, Kim, also recently donated $88 million to Penn State University to help build an arena on campus and create Division I hockey programs for both men and women. A native of Carbondale, Pa., Pegula apparently became hooked on hockey watching the Broad Street Bullies in the 1970s. He has also coached his son’s minor hockey team.

“When I helped coach my son’s team back 22 years ago,” Pegula said when he made the Penn State donation, “my passion grew.”

People often forget Buffalo when they discuss “tortured sports cities,” but think of the professional sports heartbreak their two teams suffered. The Bills lost those four Super Bowls in a variety of soul crushing ways and also endured the improbable “Music City Miracle.” Some Sabres fans still struggle with Brett Hull’s foot in the crease goal and it seems like great eras are cut short left and right, from Dominik Hasek to Pat LaFontaine to the Drury/Briere teams.

Count me among those rooting for this ownership change if it brings about big picture stability – and genuine competitiveness in free agency – for those lovable Sabres. Naturally, we’ll keep you posted on this developing story.