ARIZONA COYOTES UPDATE 01/02/15 - Andrew Barroway Press Conference

[Fugu]

It's up to 27% yes now. So we should be staying put here in a few hours.

If you post it on the Yotes forum, you could further skew the result.

 

[Dirty Old Man]

It's 35% now..

In more bad news for Glendale, their unemployment rate dropped:

http://www.glendalestar.com/news/article_0a73f462-6396-11e4-b8a7-a7a6ad52b3a2.html

...but it's all service industry jobs, right? More residents for the trailer parks?

 

[The Feckless Puck]

I debated about posting this because I have a sort of checkered history on this board, but I thought I would give some anecdotal evidence about Barroway's possible motives (anecdotal evidence is acceptable here, I'm guessing, based on stuff like mesamonster's walking tour of Westgate ).

I had a chance to talk to Jake Barroway, Andrew's son, very briefly. The kid is absolutely thrilled that his dad owns a hockey team, and he indicated that his dad was about ten times as excited about it. The way that he and his dad interacted in the short window that I saw them together felt very much like a very wealthy man bought himself and his kid a present as a way to bond together.

Now, that does not preclude Barroway moving the team at some point - we all know that the out clause lurks over all of us like Damocles' sword - but in terms of motivation it really changed my cynical first appraisal that Barroway was doing this solely as an investment opportunity. It really feels like the guy wanted to own a hockey team to feed his ego more than his portfolio.

Take that insight for whatever it's worth (and again, based on past experience I doubt it's worth much around here... ).

 

[Killion]

... felt very much like a very wealthy man bought himself and his kid a present as a way to bond together.

... hey, thanks for the insight, anecdotal or not. Interesting. Viola in Florida, similar
situation, "family thrilled" & so on. In that case appointing his Son as a VP or some such.

 

[The Feckless Puck]

... hey, thanks for the insight, anecdotal or not. Interesting. Viola in Florida, similar
situation, "family thrilled" & so on. In that case appointing his Son as a VP or some such.

Not to mention Pegula in Buffalo with his new McJesus-pursuing toy.

Anyway, another thing to add as context is that when he went out on the red carpet to drop the puck against Columbus, he went up and down the bench giving fist-bumps to the players. He also stood outside the room bumping fists as they took the ice. That struck me as wholly different than a guy doing a Bain Capital-type deal.

Of course, that introduces a whole different annoyance than an owner bent on relocation or asset-flipping - an owner who wants to hang out in the locker room. I'm pretty sure that'll get old REALLY quickly.

 

[rt]

I bet the Glendale Star is read more in Canada than in Glendale.

 

[Jeffrey93]

Not to mention Pegula in Buffalo with his new McJesus-pursuing toy.

Anyway, another thing to add as context is that when he went out on the red carpet to drop the puck against Columbus, he went up and down the bench giving fist-bumps to the players. He also stood outside the room bumping fists as they took the ice. That struck me as wholly different than a guy doing a Bain Capital-type deal.

Of course, that introduces a whole different annoyance than an owner bent on relocation or asset-flipping - an owner who wants to hang out in the locker room. I'm pretty sure that'll get old REALLY quickly.

Or he's doing an amazing job at selling this so the next couple seasons aren't a disaster by even Coyote standards.

 

[TheLegend]

Or he's doing an amazing job at selling this so the next couple seasons aren't a disaster by even Coyote standards.

Uh.... yeah.... okay.

 

[Killion]

Uh.... yeah.... okay.

Yes, that would be quite an act, evil you might say,

... and I dont think Andrew Barroway is that good of an actor.

 

[TheLegend]

Yes, that would be quite an act, evil you might say,


... and I dont think Andrew Barroway is that good of an actor.

No... he's not.

He was very up front that he's a noob at this (owning a pro sports franchise) and is listening to IceArizona's other members on what they have learned since they took control of the franchise 18 months ago.

He's made it clear the major decisions will be his to make and his to own up to (right or wrong).

I meant to post this earlier but LeBlanc was on the radio earlier today and commented a little on how he met Barroway and that he felt having a true majority owner in place now made it better.

http://www.foxsports910.com/media/podcast-the-freaks-interviews-TheFreaksInterviews/16-anthony-leblanc-25716406/

 

[mesamonster]

No... he's not.

He was very up front that he's a noob at this (owning a pro sports franchise) and is listening to IceArizona's other members on what they have learned since they took control of the franchise 18 months ago.

He's made it clear the major decisions will be his to make and his to own up to (right or wrong).

I meant to post this earlier but LeBlanc was on the radio earlier today and commented a little on how he met Barroway and that he felt having a true majority owner in place now made it better.

http://www.foxsports910.com/media/podcast-the-freaks-interviews-TheFreaksInterviews/16-anthony-leblanc-25716406/

So I wonder if Andy and his son were in attendance last evening? Their presence may have helped the anemic response to his ownership! As for Andy and his "noobie " status, that adds another rookie to the management ranks! Tony and the boys have shown us how well you can do as a first timer in the world of professional sports management. He will maintain Tony and his low budget staff, and maintain the status quo with regard to the on ice product! Let us not forget, Andy is an East coast lawyer/hedge fund mgr. Has anyone in the intrepid media bothered to ask him if he will be moving his family and offices to the desert? I suspect, Andy and his feel good son will continue to live on the East Coast and be absentee and basically uninvolved stewards of this weak franchise.

Honestly, once this week leaves us and the novelty of AB has distanced him in the rear view mirror we will all go back to asking many of the same questions that have plagued the IA clowns. What are you going to do to change the fortunes of this franchise?

 

[cbcwpg]

No... he's not.

He was very up front that he's a noob at this (owning a pro sports franchise) and is listening to IceArizona's other members on what they have learned since they took control of the franchise 18 months ago.

He's made it clear the major decisions will be his to make and his to own up to (right or wrong).

I meant to post this earlier but LeBlanc was on the radio earlier today and commented a little on how he met Barroway and that he felt having a true majority owner in place now made it better.

http://www.foxsports910.com/media/podcast-the-freaks-interviews-TheFreaksInterviews/16-anthony-leblanc-25716406/

Are the words "true majority owner" your wording or is this LeBlanc's?

I find it strange that LeBlanc used the words "true majority owner" , because then he's just confirming what a lot of people have speculated.... that LeBlanc, Gosbee, and friends were just place-holders for the NHL until something more permanent was found.

 

[The Feckless Puck]

So I wonder if Andy and his son were in attendance last evening?

No, they were not.

Has anyone in the intrepid media bothered to ask him if he will be moving his family and offices to the desert?

Yes. Barroway said that he is looking for property out here. He isn't moving here full-time, though, if I interpreted his comments correctly - his business interests are in Philly, after all, and it would be spectacularly stupid to uproot an entire business just to make it local to one of your toys.

 

[The Feckless Puck]

Are the words "true majority owner" your wording or is this LeBlanc's?

I find it strange that LeBlanc used the words "true majority owner" , because then he's just confirming what a lot of people have speculated.... that LeBlanc, Gosbee, and friends were just place-holders for the NHL until something more permanent was found.

What's strange about it? They had nine investors pooling their money to act as the ownership group and basically divvied up the percentages to ease the financial burden and run the team by committee - Gosbee was basically a de facto governor because someone had to be in their group. Barroway with his 51% of the total team ownership now qualifies both technically and philosophically as the "true majority owner" and team governor.

Honestly, folks, the simplest explanation is usually the most correct. Not everything is a conspiracy.

 

[mesamonster]

No, they were not.



Yes. Barroway said that he is looking for property out here. He isn't moving here full-time, though, if I interpreted his comments correctly - his business interests are in Philly, after all, and it would be spectacularly stupid to uproot an entire business just to make it local to one of your toys.

Thanks for the clarification! You have confirmed my suspicions, Andy is no different than any of the other hucksters that have found their way into ownership of the Coyotes via the helping hand of GB and the COG! They bring in this false narrative of excitement but little of anything else. In this case he is committing the ungodly sum of $15mm, 30% of what the clowns committed a little over a year ago! IMO, this is not a commitment of great faith or personal risk On his part. "I'm looking for housing "! Oh really? Just like Tony who rents some low cost place or stays in the local hotels. Andy is an East coast guy who winters in SE Florida!

Can we please call him what he is! He is an absentee owner with very little, if any real loyalty to the team, the fans or Glendale. He brings few resources and even less expertise. So what has this franchise actually gained beyond a few more months of operating capital?

 

[The Feckless Puck]

Can we please call him what he is! He is an absentee owner with very little, if any real loyalty to the team, the fans or Glendale. He brings few resources and even less expertise. So what has this franchise actually gained beyond a few more months of operating capital?

Greater financial flexibility is about all the franchise has gained with this transaction, along with a change in the guy at whom the buck stops.

But then, who was expecting Barroway to be some sort of Pegula-style superfan white knight? Nobody in Arizona knew who Barroway was until this past fall, except for a few hardcore fans who knew he had tried to buy other teams without success.

 

[CasualFan]

Can we please call him what he is! He is an absentee owner with very little, if any real loyalty to the team, the fans or Glendale. He brings few resources and even less expertise. So what has this franchise actually gained beyond a few more months of operating capital?

I really could not disagree with you more. It's a global market. Proximity is essentially irrelevant. If you check, I think you'll find that IceArizona LP is registered with a Houston, TX address. Most LLCs are incorporated in Delaware or Nevada. I strongly doubt Barroways time in Philadelphia is going to have any negative impact on his ability to conduct business.

As for the operating capital, it seems like Andy decided to pursue his desire to own a team without having to put too much skin in the game. So good for him and his son. Not sure why anyone would begrudge a guy for that.

I think I've been abundantly clear in my analysis of the teams prospect of ever being profitable in Glendale - but that doesn't mean the franchise won't appeal to some guys with the means who don't mind dropping a few million to experience the thrill of owning an NHL team.

I understand that most quotes have to be taken with a grain a salt but at times it seems like candid moments are captured. For LeBlanc it was something like "at the end of the day finance trumps all". For Barroway it was more like "I want to be a part of the team and not lose too much doing it"

I don't believe this alters the ultimate fate of the team in Arizona but I think Andy is going to have a great time and I'm happy for him and his family

 

[Killion]

.... that LeBlanc, Gosbee, and friends were just place-holders for the NHL until something more permanent was found.

Yes, I listened to the interview lastnight after TL posted it and thats essentially what he said. That they'd been operating as a "Committee" and that he (LeBlanc) felt that in business there should be a Majority Owner calling the shots, having final say on whatever issues.

What's strange about it? They had nine investors pooling their money to act as the ownership group and basically divvied up the percentages to ease the financial burden and run the team by committee - Gosbee was basically a de facto governor because someone had to be in their group. Barroway with his 51% of the total team ownership now qualifies both technically and philosophically as the "true majority owner" and team governor.

Honestly, folks, the simplest explanation is usually the most correct. Not everything is a conspiracy.

There is nothing "strange about it", quite correct. It's always been my belief, Conspiracy Fact not Theory, that IA were merely placeholders, caretakers of a sort who's primary objective was to try & stabilize the franchise and in conjunction with the NHL to continue beating the bushes in trying to secure either additional investors or a single majority investor. Further, that market conditions were evolving & improving from fall 2013 on, from a new CBA, un-capped Revenue Sharing & Development Funding available, healthy Broadcast Contracts & ever increasing Central Revenues, the economy picking up in Glendale & greater Phoenix etc. They bought themselves 5yrs to try & accomplish that, just happened to occur quicker than expected. The LOC with Citi-Bank facilitating such which in conjunction with the Clipper sale in CA created a wave big enough to creatively justify a near on 100% increase in the franchise valuation, meeting the threshold that Citi would require in order to extend credit to any given franchise.

All that being said, I dont think the franchise is out of the woods by a longshot. It remains to be seen what if anything fundamentally changes in terms of business operations moving forward, particularly from promotional, advertising & sales perspectives, spending money, getting aggressive, something we havent seen to date as resources were not available to do so. One cannot separate the City of Glendale from the equation and just assume they'll be capable, able to cover the AMF indefinitely when returns to date havent even come close to covering the $15M their paying every year. The concert & event bookings are simply not going to improve overnight, next year, the year after that or the year after that one, which brings us to either end~game or, if the will is still there, another 10yrs, $150M. If your a fan, Arizonian or not and support the efforts, all you can really do is hope for the best but it would be remiss, somewhat naive' to not also consider the worst. Fascinating and complex situation, moving target.

We'll be back in the not too distant future Im sure as things evolve, but yes, as M4B has correctly surmised in closing this thread, thats all for now folks....

 

[Major4Boarding]

And with that, the transaction is concluded... officially official.