Speculation: Barroway looking to sell 49% stake at $500M valuation

[cobra427]

- The Coyotes have a lot of debt
- The Coyotes lose money annually. Quite a bit
- The Coyotes current ownership cannot continue as is
- The Coyotes are in need of a new arena or a share of an arena, requiring even more capital from any buyer
- The Coyotes are not in a strong market with obvious demand - the market needs a lot of work and patience (time)

A lot can change in a year and the league has several options but please don't act like Shannon's opinion is off base. This is not a great situation to be in. But we always knew it was going to be this way, based on how leveraged Barroway was/is. He needs new investors or someone to buy the team outright. That's unlikely, given the asking price in combination with everything I just listed above.

I know this isn't fun to think about or talk about when the roster is so strong and the year so full of promise. It's still entirely possible Barroway gets forced out, taps out, or simply sells a majority share on the cheap to someone who wants to mess around with a hockey team in AZ. It's just not likely at this point.

Same story line the last 20 years, yet the team is still here. Until the NHL decides to move the team, they will stay in AZ. If anyone isn't convinced of that by now, not sure what to say. The NHL's fortitude and opinion hasn't changed and I don't see it changing.

 

[johnchayka89]

 

[ck26]

It's only worth what someone is willing to pay, not what someone is asking.

I phrased it wrong ... why does he THINK the team's value has increased so much?

What we should have done is win the 2015 draft lottery. Damnit. Why didn't we think of that sooner?

 

[The Feckless Puck]

The NHL's fortitude and opinion hasn't changed and I don't see it changing.

The NHL's "fortitude and opinion" goes exactly as far as the BoG's lack of alternatives.

The team was going to be relocated until Wayne Gretzky intervened.

The NHL barred the relocation to Hamilton because Balsillie was trying to hijack the franchise out from under the league.

The NHL was going to relocate the team unless Glendale paid them $25M/year as a ransom.

The NHL was going to relocate the team if Glendale hadn't narrowly agreed to pay the gigantic subsidy to IceArizona.

And the NHL is going to relocate the team if they can't find another patsy to take over for Barroway.

The long and short of it is that there is nobody local - like a Pegula or Dundon - who wants to buy this team and keep it here. Why that is, I'm not sure. We certainly have a surfeit of incredibly rich people who live here who like professional hockey and who know how to market things well. But Andy Barroway won't be in charge long if he misses cash calls and can't pay his bills. So once again, we're teetering on the precipice.

 

[RABBIT]

man, i'm so exhausted with this shit

 

[cobra427]

The NHL's "fortitude and opinion" goes exactly as far as the BoG's lack of alternatives.

The team was going to be relocated until Wayne Gretzky intervened.

The NHL barred the relocation to Hamilton because Balsillie was trying to hijack the franchise out from under the league.

The NHL was going to relocate the team unless Glendale paid them $25M/year as a ransom.

The NHL was going to relocate the team if Glendale hadn't narrowly agreed to pay the gigantic subsidy to IceArizona.

And the NHL is going to relocate the team if they can't find another patsy to take over for Barroway.

The long and short of it is that there is nobody local - like a Pegula or Dundon - who wants to buy this team and keep it here. Why that is, I'm not sure. We certainly have a surfeit of incredibly rich people who live here who like professional hockey and who know how to market things well. But Andy Barroway won't be in charge long if he misses cash calls and can't pay his bills. So once again, we're teetering on the precipice.

Your repeating the same story, the NHL isn't moving the team. There are 50 other reasons the team would have, could have or should have moved and there will be 50 more. Long term, moving out of the AZ market has more downside for the NHL then staying here. This is the NHL's opinion which is the only one that matters.

 

[moosemeister]

We obviously don't know all the details.

Oliver, Hammer and Raanta all extended multiple years. I'm sure a relocation was something brought up. They were either reassured, or they don't mind moving to Houston.

We have had one of the best offseason in recent years. I'm not going to let this drama bring down my excitement for the upcoming season. That said, I still won't be buying any merchandise until this stuff is taken care of.

 

[The Feckless Puck]

This is the NHL's opinion which is the only one that matters.

I just gave you several examples of where the "NHL's opinion" was that the team should move. The "NHL's opinion" is the NHL's opinion right up until it isn't their opinion anymore.

 

[cobra427]

I just gave you several examples of where the "NHL's opinion" was that the team should move. The "NHL's opinion" is the NHL's opinion right up until it isn't their opinion anymore.

Those were your opinions/interpretations of what happened not the NHL's, the team is still here.

 

[The Feckless Puck]

Those were your opinions/interpretations of what happened not the NHL's, the team is still here.

Okay.

 

[TheLegend]

- The Coyotes have a lot of debt
- The Coyotes lose money annually. Quite a bit
- The Coyotes current ownership cannot continue as is
- The Coyotes are in need of a new arena or a share of an arena, requiring even more capital from any buyer
- The Coyotes are not in a strong market with obvious demand - the market needs a lot of work and patience (time)

A lot can change in a year and the league has several options but please don't act like Shannon's opinion is off base. This is not a great situation to be in. But we always knew it was going to be this way, based on how leveraged Barroway was/is. He needs new investors or someone to buy the team outright. That's unlikely, given the asking price in combination with everything I just listed above.

I know this isn't fun to think about or talk about when the roster is so strong and the year so full of promise. It's still entirely possible Barroway gets forced out, taps out, or simply sells a majority share on the cheap to someone who wants to mess around with a hockey team in AZ. It's just not likely at this point.

I’m not acting like I think Shannon is off base and thank you for telling me things I’ve already known about for the last several years.

Maybe one of these days you’ll finally figure out that I look at things from more than one POV.

 

[Mosby]

The long and short of it is that there is nobody local - like a Pegula or Dundon - who wants to buy this team and keep it here. Why that is, I'm not sure. We certainly have a surfeit of incredibly rich people who live here who like professional hockey and who know how to market things well. But Andy Barroway won't be in charge long if he misses cash calls and can't pay his bills. So once again, we're teetering on the precipice.

Small thing, but Dundon is not local to Carolina. He's from Dallas.

Bruins owner is very powerful and very high on Houston. We need him to croak.

 

[The Feckless Puck]

Small thing, but Dundon is not local to Carolina. He's from Dallas.

That's more local than any of our owners have been since Moyes...

Bruins owner is very powerful and very high on Houston.

Yep. Anyone talking about the NHL's opinion on the Coyotes' future needs to start their assessment with Jacobs as the power broker on the BoG.

 

[Mosby]

Time for Barroway to take his new neighbor Bob Parsons to lunch at Kabuki.

 

[RABBIT]

Time for Barroway to take his new neighbor Bob Parsons to lunch at Kabuki.

who picks up the bill

 

[XX]

who picks up the bill

Uncle Gary, if such a swap comes to happen.

 

[Dirty Old Man]

^Parsons calls in a favor from his tenant restaurant - it's comped.

 

[Coyotes2000]

What is up with this Parsons love fest?

It's not going to happen.. ever

 

[Coyotes2000]

It's pretty obvious, Barroway will sell his 49% which is financed right now to someone else. That person or group will eventually take over majority. The Ice Edge clowns were holding the team back from a management standpoint and yes, we owe alot to them for keeping the team here but it had to happen at the time.

 

[azcanuck]

Your repeating the same story, the NHL isn't moving the team. There are 50 other reasons the team would have, could have or should have moved and there will be 50 more. Long term, moving out of the AZ market has more downside for the NHL then staying here. This is the NHL's opinion which is the only one that matters.

You keep your head in the sand then.
Everything has a shelf life.
Yes the NHL would like to keep a team here in this part of the USA. It's a huge market. But they have ZERO interest in running a team.
We were close with the arena deal in Tempe. Hockey can work here in the east valley. Hockey will never work in BFE (Glendale).
I think some of the posters are correct in saying the team needs one deep pocketed guy and an arena deal at some point. Tell me the Natives that run Salt river and the Casino in Scottsdale would not love to have hockey patrons 40x a year.
My opinion is time is running out and unless we get a hail mary the team will finally be moved.

 

[Jakey53]

You keep your head in the sand then.
Everything has a shelf life.
Yes the NHL would like to keep a team here in this part of the USA. It's a huge market. But they have ZERO interest in running a team.
We were close with the arena deal in Tempe. Hockey can work here in the east valley. Hockey will never work in BFE (Glendale).
I think some of the posters are correct in saying the team needs one deep pocketed guy and an arena deal at some point. Tell me the Natives that run Salt river and the Casino in Scottsdale would not love to have hockey patrons 40x a year.
My opinion is time is running out and unless we get a hail mary the team will finally be moved.

The team is not moving. The NHL ran the team because they want a team in this market. The NHL and Coyotes are continuing to build fans, building outdoor rinks etc. We wouldn't even be here discussing the team moving or an arena if the team had been winning on a constant basis. AB and the NHL will find someone to buy the 49% share.

 

[RemoAZ]

It certainly would nice to at least have a shot to draw fans with a team good enough to contend for a few years. Other than one "lightning in a bottle" season, the team has been dreadful in Glendale. Throw in the BK and constant relocation rumors and you have more effort pushing fans away than actually earning their support. No one ever acknowledges this because it goes against the narrative to get them a subsidy. That's all the new arena effort has ever been or ever will be; free taxpayer money to rich people.

Even this season we have some positive movement and then bam, the article about the owner needed someone to overpay for 49% of the team. We can never even get a few months of positive progress without someone pissing on the team. It's so consistent it almost looks like the continual sabotage is done on purpose.

 

[moosemeister]

The thing is, we’ve known about the investor thing for months. Craig posted a little while back that something like this was in the works.

I think we are all just a little shocked by the asking price more than anything

 

[Jakey53]

The thing is, we’ve known about the investor thing for months. Craig posted a little while back that something like this was in the works.

I think we are all just a little shocked by the asking price more than anything

Asking and getting are two different things.

 

[_Del_]

The NHL ran the team because they want a team in this market.

The NHL ran the team because they found a rube (CoG) to foot the bill. They were ready to ship out twice before the CoG caved and handed them buckets of money to cover the operating costs. Try not to forget that in your blindly optimistic calculus.