Blues on the market

[WC Handy*]

What I don't like about this is the fact that during all these discussions about who is in trouble, who needs help to survive, who should be sold &/or moved, the subject has been the Carolinas, Panthers, Pens, etc.

Never have we considered that a contender and "established" team would be in this boat.

I'm a Wings fan, but I find it disturbing for the NHL overall that the owner of the Blues would want to sell NOW. It is the worst time, IMO, to sell...and what does it say about the Blues' ownership's confidence in Bettman, the league and the new CBA?

As I've already said... it says more about Bill Laurie than it does anything else. He was the one who bought the team with the sole intension of getting an NBA team. He was the one that decided to spend $60M+ on players. And he's the one that is now citing financial losses that he incurred only because he chose to as a reason to sell.

And that's exactly why you've been hearing about the Carolinas of the league and not the Blues. The Blues are in the middle of the pack in revenue generation and near the top of the league every year in attendance. They only lost money because Bill Laurie decided to and they won't be losing money once the league returns w/ a cap.

 

[Sp5618]

As I've already said... it says more about Bill Laurie than it does anything else. He was the one who bought the team with the sole intension of getting an NBA team. He was the one that decided to spend $60M+ on players. And he's the one that is now citing financial losses that he incurred only because he chose to as a reason to sell.

And that's exactly why you've been hearing about the Carolinas of the league and not the Blues. The Blues are in the middle of the pack in revenue generation and near the top of the league every year in attendance. They only lost money because Bill Laurie decided to and they won't be losing money once the league returns w/ a cap.

Laurie is still a businessman, no? He may not be a very good businessman...but in your honest opinion should a team of the Blues' caliber be on the market NOW?

 

[heygarebear]

I just hope whoever buys the Blues is crazy about hockey.. and actually knows something about the game.. unlike the Lauries..

 

[LA Blue]

As I've already said... it says more about Bill Laurie than it does anything else. He was the one who bought the team with the sole intension of getting an NBA team. He was the one that decided to spend $60M+ on players. And he's the one that is now citing financial losses that he incurred only because he chose to as a reason to sell.

And that's exactly why you've been hearing about the Carolinas of the league and not the Blues. The Blues are in the middle of the pack in revenue generation and near the top of the league every year in attendance. They only lost money because Bill Laurie decided to and they won't be losing money once the league returns w/ a cap.

The Blues overspent, yes. However, the 12.6 cents on every dollar in ticket revenue that goes to the city is still a major financial strain on the team, one that many are saying was the straw that had broken the camels back for ownership. No matter how rosey the new market is with the CBA, the Blues will continue to face a huge financial burden that IMO, puts them up there with Canadian teams and their losses.

 

[MarkZackKarl]

The Candian teams were one of the most profitable teams on average last season. How can the Blues, who were one of the biggest losers in the league the last several years, all their own fault obviously, be similar to the Canadian teams when they are completely opposite?

 

[topshelf331]

The Candian teams were one of the most profitable teams on average last season. How can the Blues, who were one of the biggest losers in the league the last several years, all their own fault obviously, be similar to the Canadian teams when they are completely opposite?

Because of high taxes, and exchange rates.

 

[Dave is a killer]

Because of high taxes, and exchange rates.

and with Bush in office it looks like its continuing that way

 

[Hawker14]

after sleeping on it, i'm still shocked that the blues are for sale.

a team with more than 18,000 fans per game deserves a heck of alot better.

hopefully more responsible ownership and some tax relief will make this franchise as healthy as it should be.

 

[mr gib]

after sleeping on it, i'm still shocked that the blues are for sale.

a team with more than 18,000 fans per game deserves a heck of alot better.

hopefully more responsible ownership and some tax relief will make this franchise as healthy as it should be.

maybe the nba finally told him - no way -

 

[Malefic74]

Because it's Friday (and I don't do math on Fridays) can someone figure out what that 12.6% works out to annually?

I know the Habs pay the biggest property taxes of the Canadian teams at $8 million a year I was just wondering how close they are to the Blues.

 

[BwayBshirt]

on the business side of sports, i hate it when governments will give tax reliefs/special treatments to some teams but not others in places where there are multiple teams. especially when those teams--like the blues--have some sort of tradition and good history behind them.

 

[WC Handy*]

Because it's Friday (and I don't do math on Fridays) can someone figure out what that 12.6% works out to annually?

I know the Habs pay the biggest property taxes of the Canadian teams at $8 million a year I was just wondering how close they are to the Blues.

Nobody knows for sure what the team brings in as far as ticket revenue, but it's estimated at about $31M (before luxury boxes) which works out to almost $4M in taxes just on tickets.

 

[craig1]

whoever is getting out of hockey now has absolutely no forsight, because we're seeing the light at the end of the tunnel now.. within 5 years the NHL should be very profitable

I'm sure that whomever is negotiating the sale for them is taking into consideration the increased cash flows (assuming long term discounted cash flow modeling) and the expected increase in equity over the next few years when calculating the overall NPV of the franchise, and equating that to the offering price.

 

[WC Handy*]

Laurie is still a businessman, no? He may not be a very good businessman...but in your honest opinion should a team of the Blues' caliber be on the market NOW?

No, which is exactly why it says more about the man than the league.

The only financial reasoning I can see for selling the team now is if he has little faith in the fan base sticking with the team during the soon-to-begin rebuilding process because the fans in this city haven't had to cheer for a non-playoff team in 25 years.

 

[WC Handy*]

An update on this situation.... Blues president Mark Sauer met with the mayor of St Louis and he's confident the city is going to make the chances necessary to reduce the tax hit. Mayor Slay has very big in making sure the Cardinals stayed in St Louis (opposed to another municipality in the metro area) so I assume he will get the job done.

 

[mackdogs*]

Maybe Malcolm Glazer will buy them.

 

[WC Handy*]

Maybe Malcolm Glazer will buy them.

NFL rules wouldn't allow it.

 

[topshelf331]

Using Crude numbers based on averages and total attendance of 2003-04. I acame up with a total in range of $5.7-6.8M in just ticket sales. ITs my understanding that they pay those same taxes on concessions also. So its probably close to double that. Now keep in mind this is an innacurate total(i didnt want to count up the seats in each section.)

I used the average between the 13 different price levels at Kiel(I liked the old name better anyways). And the average between if they were all season ticket holders vs. full gate price. But that should help give a round number range.

 

[danaluvsthekings]

I know when new arenas open they usually get teams to sign long term leases to make sure the team isn't going to up and move town after people spent hundreds of millions building the arena. But why in the heck is the Blues lease for 50 years (arena opened in 1994, the lease is until 2044)? Does anyone think that any of these new stadiums and arenas built around the country in the last 10 years are going to be around in 2044?

 

[WC Handy*]

I know when new arenas open they usually get teams to sign long term leases to make sure the team isn't going to up and move town after people spent hundreds of millions building the arena. But why in the heck is the Blues lease for 50 years (arena opened in 1994, the lease is until 2044)? Does anyone think that any of these new stadiums and arenas built around the country in the last 10 years are going to be around in 2044?

It was probably a requirement to get the city to pay for the building.

 

[danaluvsthekings]

It was probably a requirement to get the city to pay for the building.

Probably so. But even then I don't think I can recall a team having longer than a 25 or 30 year lease when they move into a new facility. I could be wrong of course. 50 years seems ridiculously long.

 

[topshelf331]

Probably so. But even then I don't think I can recall a team having longer than a 25 or 30 year lease when they move into a new facility. I could be wrong of course. 50 years seems ridiculously long.

Theyre last building was used since the turn of the century, so lets hoep they make buildings better than they used to.

The biggest concern is, Im sure the crowd capacity will need to be larger by then.

 

[Hasbro]

Theyre last building was used since the turn of the century, so lets hoep they make buildings better than they used to.

The biggest concern is, Im sure the crowd capacity will need to be larger by then.

Soylent Green will fix that.

 

[dolfanar]

Soylent Green will fix that.

Speaking of Sylent Green, anyone heard from Bryan McCabe recently?

 

[Malefic74]

Speaking of Sylent Green, anyone heard from Bryan McCabe recently?

If he's a man of his word I'm expecting a press conference announcing his retirement.