Andrew Barroway - Coyotes majority owner.

[Coyotes2000]

http://nypost.com/2014/10/02/spurned-islanders-buyer-to-purchase-coyotes-instead/

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[goyotes]

This makes sense to take out the loan which is a drag on the balance sheet. The price does not make sense. Also, losing $24M with a full share of revenue sharing, $15M from the CoG, and the television contracts, all on a payroll just above the floor, also doesn't make sense.

It's the Post. There may be something going on with selling a majority share to add equity and take out the lender, but I doubt the rest of the story is correct. The Coyotes have to provide the CoG with their P/L by the end of October for losses they will show last year. We will find out the actual number (which the CoG will audit), soon enough.

 

[CC96]

#twoweeks

 

[_Del_]

I mean, if you're buying in now while looking forward four years to put it where you want it, this deal probably seems cheap on the dollar.

As though today wasn't just filled with hope and optimism for the future already...

 

[RemoAZ]

Well hopefully the new guy pushes for more change to the on ice product than the current group because they haven't done ****.

 

[SniperHF]

Who would he be buying out?

 

[AZviaNJ]

Who would he be buying out?

The RSE/Ice Arizona guys....if rumor is true.

 

[Llewzaher]

51% ice Arizona holds 49%

 

[SniperHF]

The RSE/Ice Arizona guys....if rumor is true.

Isn't that all of them? What I mean is who is owning the 49%.

 

[Coyotes2000]

Who would he be buying out?

Nobody, buying a Controlling interest in the team.

 

[AZviaNJ]

This makes sense to take out the loan which is a drag on the balance sheet. The price does not make sense. Also, losing $24M with a full share of revenue sharing, $15M from the CoG, and the television contracts, all on a payroll just above the floor, also doesn't make sense.

It's the Post. There may be something going on with selling a majority share to add equity and take out the lender, but I doubt the rest of the story is correct. The Coyotes have to provide the CoG with their P/L by the end of October for losses they will show last year. We will find out the actual number (which the CoG will audit), soon enough.

I think you're spot on. The $24m could be a grossed up # inclusive of god knows what. The sale though makes sense.....and don't know if that is a positive or a negative for the team's future in the Valley. All the youngsters being sent down could be a ripple effect of the new owner wanting to chase some vets from cap strapped teams and attempt to compete now. This will be very interesting to see play out.

 

[YandlesMother]

I would of discounted this rumor as totally crazy... then I just saw Morgan's tweet:

Craig Morgan ‏@cmorganfoxaz 5m5 minutes ago
A few points on the NY Post report (http://nypost.com/2014/10/02/spurned-islanders-buyer-to-purchase-coyotes-instead/ …) NHL sources say reports of impending #Coyotes sale are premature. Nothing's set.

 

[Howler Scores]

LOL I cant even process this right now. Morgan is saying the higher franchise value drove interest so that seems good. I am also sure I remember an ownership change required Council approval due to the lease; that would be fun drama...not.

Or a person saw what happened today and is trying to buy the team to save them from themselves

 

[Tad Mikowski]

Gonna talk about it now on 98.7. It'll be interesting to see what our wonderful sports reporters have to say about it

 

[ClassLessCoyote]

 

[Kaibur]

TSN has it too:

http://www.tsn.ca/majority-stake-in-coyotes-to-be-sold-to-barroway-1.97583

 

[kihekah19*]

If true, giving up controlling interest does not represent being "in it for the long haul." The good thing is that we may have someone who really is interested in winning, but sadly and most likely, someone interested in moving them along to parts unknown.

 

[Howler Scores]

Gonna talk about it now on 98.7. It'll be interesting to see what our wonderful sports reporters have to say about it

At least they now know the out clause was 5 years and not 2 like he was ranting on about last year.

 

[BlazingBlueAnt]

Does the 24mil number include the Ribs buyout?

 

[Howler Scores]

I doubt the $24 million figure is correct. It may be the amount before revenue sharing/lease payments are accounted for though.

 

[kihekah19*]

I say good riddance to RSE's controlling interest - never liked 'em anyhow.

 

[Vinny Boombatz]

If the rumor of the valuation is true at $305m, then obviously 51% is approx $156m, which means the RSE guys almost get their entire investment back while still maintaining minority interest in the team.

If this means the balance sheet is void of debt and will make the team more profitable sooner, then I'm all for it...heck, the guy may actually want to win.

 

[TJinAZ]

Or it could be the other way

New investor pays off fortress so the team has no debt, reducing the expenses. Management then sees they don't "have to" play rookies to stay in town and we let the tank begin.

Glass half full

 

[cobra427]

The buyer could want to own an NHL franchise and he has to buy somebody to do it. There are only so many franchises and he has to buy one of them. The Clipper sale price has to have helped the value of pro sports franchises. RSE can take some money off the table, retire some debt.

Also, look at the value for RSE: Before the sale, they own 170 mill in equity. After the sale @305 mill, they own (49% of 305 mill), just under 150 mill. RSE took some money off the table, retires debt, and still owns 150 mill worth of the franchise. They loose control though which could be a big issue but financially this makes sense for RSE.

Assuming all of this is true, we could get a deep pocket hockey guy that wants to spend some money to win, even if he looses money. Time will tell.

 

[Mosby]

A Coles Notes on Andrew Barroway:
http://www.linkedin.com/pub/andrew-barroway/55/3/7aa