Andrew Barroway - Coyotes majority owner.

[Desert Ice 11]

How deep are this guys pockets? I still think he should only get 49%

 

[Plub]

I guess that would explain why they were so quiet during the off-season unlike last year and why they didn't spend a damn thing to bring in players.

 

[BigJCaRoach]

http://www.notenoted.com/music-blog//2011/10/same-as-it-ever-was-party-supplies-cover-notenoted-music-review.jpg

Same as it ever was. Same as it ever was. Talking Heads all over this.


Edit: button mashing on mobile

I can't wait for the season to start.

 

[Desert Ice 11]

http://http://www.notenoted.com/music-blog//2011/10/same-as-it-ever-was-party-supplies-cover-notenoted-music-review.jpg

why did you put this in PHP code? Oh well..here it is

 

[ClassLessCoyote]

I wonder what revenue streams the Islanders are getting from the new Barkley's Center when they move there? Is this news just a way for this guy to get a better deal with regards to the Islanders purchase?

 

[Howler Scores]

At least it isn't terrible news. Just odd news.

 

[CC96]

Lol, RSE probably just wants to desperately get out from under this team after watching one year of Klink and Chip.

 

[Howler Scores]

http://coyotes.nhl.com/club/m_news.htm?id=732787

Official statement

 

[Desert Ice 11]

We will have 10 owners..YAY!!

Is there a limit on how many can be in an ownership group? How many till it's considered public ownership?

 

[YandlesMother]

We will have 10 owners..YAY!!

Is there a limit on how many can be in an ownership group? How many till it's considered public ownership?

I remember thinking this when I recently heard a Marek podcast talking about how the NHL in the 80s wanted to stay away from the possibility of a publicly owned team. I thought "hah, yea this is kind of close".

 

[ClassLessCoyote]

http://sports.yahoo.com/blogs/nhl-p...ected-islanders-bidder--report-215537685.html

Perhaps the most intriguing aspect of this story: Barroway would drop his $10 million lawsuit against Islanders owner Charles Wang in exchange for the right to buy the Coyotes. He sued Wang after claiming the Islanders owner backed out of a handhake deal to buy the team, alleging that Wang decided against the deal after the Los Angeles Clippers sold for $2 billion.

Looks like my question from before may have been answered.

 

[_Del_]

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.

Flip side says that with 51% he can move even if IceEdge wanted to stay. Though if we really lost $24M last year, they aren't going to want to stay. Everyone gets in cheap and increases their bottom line if they move.

 

[SR]

They way i see it is this will bring in some additional money to the team and they will try it here for the next 3 years and if it works, it works, if it doesnt, they move.

As big of a Yotes fan I am, the writing is on the walls when they implemented that 5 year out clause. If we dont turn a profit we're out and someone else is in.

 

[XX]

This is the only way the loans IA/RSE are on the hook for were ever going to be repaid, barring a relocation. This should surprise no one.

 

[Desert Ice 11]

They way i see it is this will bring in some additional money to the team and they will try it here for the next 3 years and if it works, it works, if it doesnt, they move.

As big of a Yotes fan I am, the writing is on the walls when they implemented that 5 year out clause. If we dont turn a profit we're out and someone else is in.

I am not sure what is going on. The statement sounds like another investor wants to buy himself into the IA group. If so then all stays the same except ownership has some money to play with. If that's not the case it may get complicated.

If he is separate from IA and that 49% has met the requirements and exercised the out clause that 51% then you have two parties owning one team with no arena. The 51% gets to decide where the team will play and possibly try to get a new lease for Gila River Arena. IA would really have no say on where the team lands if the NHL approves of a relocation.

It looks like another person that wants to own a sports team. This would take a good amount of burden off of IA and all owners might get the chance to ice a team that could get them a cup. For them it may not be about the location just the opportunity.

 

[Blubba Jenkins]

#twoweeks

50/50

 

[jacobhockey13]

Sorry False alarm

 

[Jamieh]

The Oilers ran for quite a few years with a large ownership group. I think there were 30 of them???

We will have 10 owners..YAY!!

Is there a limit on how many can be in an ownership group? How many till it's considered public ownership?

 

[0point1]

Odd news yes. So IA used the loans from Fortress and NHL as temporary financing until they found another buyer/partner. So the whole IA "we are here for the long term" was complete bull. Now it appears that if IA doesn't get another partner/buyer within the next 4 years we are guaranteed to relocate. So what is the motivation of a guy from Philly to own a team in Arizona? This potential owner is a buy low sell high guy (aka Hedge fund manager), this almost points towards a flip scenario again, likely to a different market like Seattle or Quebec. Or maybe he just really likes hockey and wants to own a team.

 

[_Del_]

Odd news yes. So IA used the loans from Fortress and NHL as temporary financing until they found another buyer/partner. .

No, it's better than that. The new buyer is buying half the team, but that is paying off the financing. If this goes through, they essentially bought 49% of an NHL team(here or elsewhere) for $0.00. Easy choice. 100% of a team with a mountain of debt or 49% of a team valued at 300 something million with very little investment at all. Impressive.

 

[cobra427]

I am not sure what is going on. The statement sounds like another investor wants to buy himself into the IA group. If so then all stays the same except ownership has some money to play with. If that's not the case it may get complicated.

If he is separate from IA and that 49% has met the requirements and exercised the out clause that 51% then you have two parties owning one team with no arena. The 51% gets to decide where the team will play and possibly try to get a new lease for Gila River Arena. IA would really have no say on where the team lands if the NHL approves of a relocation.

It looks like another person that wants to own a sports team. This would take a good amount of burden off of IA and all owners might get the chance to ice a team that could get them a cup. For them it may not be about the location just the opportunity.

A year ago RSE paid 170 mill and now they sell 51% for 155 mill. They wind up with 49% of the team for 15 mill. That is why they would do this, pure economics, close to 90% of their money out and still owning 49% of the team.

They own 49% of the team for 15 mill, and the 49% is worth 150 mill. That is a 135 mill gain in one year for RSE, pure economics if this is true. How much control RSE has and over what issues is all negotiated in the deal. They could have zero say or veto power over anything, it all depends on the structure of the transaction. It will be interesting to see this play out.

 

[Dirty Old Man]

This guy didn't buy 51% of 'a struggling franchise in a crap market', he bought 51% of '1/30th of the NHL'. Someone in another forum mentioned something about 'wouldn't it be funny if the guy just really liked golf - the team would never move'...and that's kinda been my suspicion all along, that the billionaire club of the NHL *really* wants to be in a top-tier US market with awesome weather in winter, with all that entails....

As much as it confounds the amateurs on that other forum that are not - and never will be - in the billionaire club...that's what makes it so entertaining to watch them.

 

[XX]

No, it's better than that. The new buyer is buying half the team, but that is paying off the financing. If this goes through, they essentially bought 49% of an NHL team(here or elsewhere) for $0.00. Easy choice. 100% of a team with a mountain of debt or 49% of a team valued at 300 something million with very little investment at all. Impressive.

It's an interesting finance two-step. I'm sure Uncle Gary is loving it, as this reflects well on the rest of the league regarding team prices. This or relocation was the only way those loans were ever realistically going to be paid off.

It unfortunately also puts a buffer between the NHL and relocation. Now, it's just the wishes of an owner they didn't hand select.

All the preening in the world about how great Phoenix is doesn't mean ****. Atlanta is a pretty nice market to be in and that didn't work out well for them. Nobody really knows this guys motives yet. Both the Devils and Islanders were once franchises in distress and potentially movable...

 

[He Lied to Mario]

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.

Hate to nitpick, but it's lose control and loses money, not loose or looses.

 

[XX]

From Shoalts of all people:

While talks are under way, sources familiar with the Coyotes’ finances say it is unlikely a sale is imminent.

NHL deputy commissioner Bill Daly declined to discuss the situation, but he did indicate something “positive†may be in store for the Coyotes.

“There’s nothing I can share other than to say that there is no concern at all about the franchise or its future in Arizona,†Daly wrote in an e-mail message. “If anything happens, and nothing has to this point, it will only be a positive for the franchise.â€

http://www.theglobeandmail.com/spor...-coyotes-from-changing-hands/article20906156/