Cash problems for Wlid?

Discussion in 'Fugu's Business of Hockey Forum' started by Retail1LO*, Apr 30, 2011.

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  1. Retail1LO*

    Retail1LO* Guest

    ESPN Insider subscription required to view link.

    http://insider.espn.go.com/nhl/features/rumors/_/date/20110429#6425

    "Mike Ozanian of Forbes reports the Minnesota Wild are short on cash. According to majority owner Craig Leipold, falling short of a berth in the playoffs results in a financial deficit for the 2010-11 season. And there are further complications than a simple loss of money.

    Another potential problem for Leipold is the team's general partner and minority owner billionaire Philip Falcone, whose Harbinger Capital hedge fund is facing two SEC investigations. Although Falcone is obviously quite wealthy, his business fortunes have diminished greatly over the past year or so. Our figures show that the Wild post a loss of $2.3 million before interest, taxes, depreciation and amortization for the 2009-10 season, when they also missed the Stanley Cup tournament. Given the Wild?s attendance dipped a bit in 2010-11 from the prior season it is safe to say they again lost money.

    This means the unless the Wild hit the banks up for a loan the team will likely be making capital calls to owners for cash. The SEC investigation coupled with the relatively poorer performance of Falcone's investments could make it more difficult for Leipold to get cash from his partner.

    Under pressure to reach the playoffs - at the very least - next season, general manager Chuck Fletcher was expected to make a splash once the free agent market opened up this summer. This financial news won't help Fletcher's ability to sign the players he covets, at the very least.

    - Victoria Matiash
    "

    I will comment that this is from the "Rumors" section of ESPN's NHL page, but I found it interesting nonetheless. Did not figure the Wild to be in this kind of trouble.
     
  2. Killion

    Killion Registered User

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    How do you screw up hockey in Minnesota?. Norm Green + Craig Leiopld = -2 & counting. Not good. If Falcones' problems with the SEC are drawn out, seeing as how much his Hedge Fund has dipped, he may not be willing nor be able to comply with any cash call's from the team, regardless of his reported personal wealth which is to say the least, impressive. Thing is, it all appears to be based on paper. Not a ton of liquidity. Far from panic time though. Were talking a few million at most to bridge the gaps. The new broadcasting contract & hopefully a non confrontational re-negotiated & revised CBA lowering the basement on caps will help teams like the Wild. Teeter-totterers.
     
  3. headsigh

    headsigh leave at once!

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    Pretty much every team not in Toronto, Manhattan or Montreal is probably losing money in some compacity.

    I remember reading Chicago lost money in their Stanley Cup winning season.
     
  4. metalfoot

    metalfoot Karlsson!

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    Wondering if the NHL model is just broken. Seriously. Blow it up, start over again with a promotion/relegation system. Let the Torontos of the world overpay for players and let the best coaches show that the biggest names don't necessarily always win.

    But who would have believed that Minnesota would be bleeding money... wow.
     
  5. King Woodballs

    King Woodballs Captain Awesome

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    colorful accounting
     
  6. Hawkscap

    Hawkscap Registered User

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    The Hawks have to pay loans back to the other Wirtz corporations.
    The loans were needed to run the organization during the lean years.
     
  7. Killion

    Killion Registered User

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    So they claimed. Former GM & architect of last years team did make a couple of contractual faux pas' (last summers off-loading to Atlanta etc), though its important to always keep in mind that the transition between Wirtz Sr. & Junior hadnt really gelled at that moment in time. The Elder was a real piece of work. Throwback to earlier days whereby numbers were confused & convoluted, odious & questionable accounting practices to say the least. But ya, Junior did state that they just broke even 2009-10. Chicago is a fascinating case study of just how the NHL works, from its earliest incarnations through the most powerful man in hockey (Big Jum Norris) in the 40's, 50's, 60's & on;; Clarence Campbell, Expansion, the WHA etc; how Wirtz Sr. wound his way in with his Harold Ballardian propensities. On & on. Quite fascinating. Tom Hicks in Dallas seems to be more of a chip off the old blocks as well, claiming the current CBA & Cap Sys makes it virtually impossible to turn a profit even with a Cup Winning Season. Bottom line?. Dont believe their numbers.
     
  8. Hawkscap

    Hawkscap Registered User

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  9. Blackhawkswincup

    Blackhawkswincup RIP Fugu

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    Hawks also pay rent to Wirtz Corp for use of UC (Wirtz is majority owner of UC) , Hawks pay for TV cost related to Comcast Sports Chicago (Owned partially by Wirtz Corp) , etc , etc

    Hawks lose money , Wirtz makes money

    Creative accounting
     
  10. Dado

    Dado Guest

    Unbelievable - franchise after franchise in trouble, values dropping like unparachuted stones being HALOed from a C-130 - I thought the cap was supposed to solve all these problems.

    How do you screw up hockey in Minnesota - AGAIN?!
     
  11. Killion

    Killion Registered User

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    Bam. Youd' think with modern science techniques being what they are, we could scrape off some DNA from the dry & brittle bones of Jimmy Senior & inject some of these whiners around the league with an annual booster shot of the Norris genome no?. :)
     
  12. Killion

    Killion Registered User

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    In Greens case?. Keep it zipped & tucked in. Dont be marrying a Trophy Wife & give a ______. :shakehead

    As for Mr. Craig Leipold...... :help:
     
  13. KzooShark

    KzooShark Registered User

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    I'm skeptical of any team's numbers if they're owned by the same group or parent company that owns the arena they play in.
     
  14. Killion

    Killion Registered User

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    You know this terminology how?. I thought we'd erased your memory. Tommy Lee?. Mr. Jones?. Didnt complete the job.. Take 2. From the start...
     
  15. Puckschmuck*

    Puckschmuck* Guest

    I've never heard of the WLID. What city do they play out of? ;)
     
  16. Killion

    Killion Registered User

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    Ya think?. Ever wonder whats in those Pillsbury Dough Boy cylinders you buy?. I sure do. Nothing like fresh baked. But still.... Chicago style?. Is that a chocolate chip or a fingernail?. :laugh:
     
  17. Hawker14

    Hawker14 Registered User

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    I wonder how much Leipold will try to sell to Balsillie this time ?
     
  18. kdb209

    kdb209 Registered User

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    Welcome to the Willie West Show here in the wonderful West. If it's a
    weird one it's best Willie West with the hundred and one
    wild and woolly wedges of WAX! Right here on Wonderful
    WLID-D-D-D-D-D!

    1750 on your dial! Just above the police calls, kids! We got stacks
    and stacks of wax and wax, we're gonna pick and click the oldies-
    but-goldies, the newies-but-gooeys. We got the Top 700 records
    right here on Wonderful WLID-D-D-D!!!!
     
  19. Retail1LO*

    Retail1LO* Guest

    Of course they were abandoning the team. He was a crap owner who went out of his way to put nothing of value in front of his fans. He REFUSED to broadcast home games, he alienated and traded away tons of popular talent. I don't think anyone in Chicago not related to him misses the man.
     
  20. Retail1LO*

    Retail1LO* Guest

    ****! I didn't even NOTICE that! I'm SUCH an idiotface. LOL

    Sorry guys. I got this. *kicks self out of thread*
     
  21. AllByDesign

    AllByDesign Who's this ABD guy??

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    The creative juices are flowing tonight. This will be an evening of epic proportions... winner winner chicken dinner. :laugh:
     
  22. Fugu

    Fugu Guest

    We expect a bit of levity and creativity from Killion. You know things are getting interesting in the NHL when kdb waxes poetic.
     
  23. AllByDesign

    AllByDesign Who's this ABD guy??

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    I'm with ya... but not quite as intersting as a 4 minute highsticking call in OverTime ;)
     
  24. Fugu

    Fugu Guest


    With no blood spilled either. Don't get me started. :madfire:
     
  25. Killion

    Killion Registered User

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    Ive got maybe, MAYBE, a foot of line left on my Reel and you wanna fight more fish?. :laugh:
     

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