Dallas Stars: Gaglardi's Stalking Horse Bid: $265 MM for Stars, AAC (50%)

[LadyStanley]

http://prohockeytalk.nbcsports.com/...-submits-bid-to-nhl-to-purchase-dallas-stars/

PHT's take on latest bid/action (and next steps):

If the NHL approves the proposal, the next step is for the 40 lenders (and their lawyers) to fight in bankruptcy court to receive the best return on their previous investment possible. If the Phoenix Coyotes situation taught us anything, any time “NHL†and “bankruptcy court†are mentioned in the same sentence, it’s best to proceed with caution. Obviously, this is a very different situation—but there are still plenty of moving parts and interested parties for the NHL to appease.

Another point to consider within the context of the bankruptcy hearings is that all other potential ownership groups will be able to submit bids over the course of the proceedings. No matter what figure Gaglardi’s proposal includes, whenever there are names like Texas Rangers CEO Chuck Greenberg and Dallas Mavericks owner Mark Cuban involved (among others), there are bound to be a few fireworks if they’re still interested in the NHL franchise.

 

[LadyStanley]

http://www.dallasnews.com/sports/da...ser-to-official_offer-to-buy-dallas-stars.ece

Which brings us to Gaglardi, and where his bid is. Several people I have talked to said he is in New York trying to push through all of the paperwork that needs to be pushed through, and this is a difficult time to do that. In addition to lawyers, there also are financial people involved in drawing up loans, and this is a volatile time in the financial market.
...
Gaglardi and Monarch Investments already have done their negotiating, and now lawyers for the many lenders and the NHL and the Stars are looking at all of the paperwork. They are closer than they were two weeks ago, but nobody really knows when all of the lawyers will be satisfied.
I was told that the other interested buyers have not yet seen Gaglardi's offer, so that means that the offer isn't signed or official yet. Once it is, the other buyers will get a look and they lawyers will proceed to a pre-packaged bankruptcy case.
There could be a change there, as I'm hearing the case could be filed in Delaware and not Texas. Apparently, the laws are different there and work better for this case.
...
Whatever bid Gaglardi puts forward, I was told a competing bid would have to be $10 million more than that bid to be accepted in bankruptcy court.
Right now, it seems the bankruptcy court case could be heard in early September. If no one overbids on Gaglardi's offer, he could take over as early as October. If there is an auction, it could be pushed back to November.

And regarding the two bidders who might jump ship for Blues...

My guess is that the two mentioned in the article are Detroit businessman Christopher T. Charlton and local sports entrepreneur Chuck Greenberg. Both would be willing to study other teams to get a chance at NHL ownership. Allen Americans owner Doug Miller is from the St. Louis area and is a huge Cardinals fan, but I believe his hockey interest is anchored in Dallas. He has supported youth hockey here for more than a decade.

 

[ps241]

http://www.dallasnews.com/sports/da...ser-to-official_offer-to-buy-dallas-stars.ece



And regarding the two bidders who might jump ship for Blues...

it would surprise but not shock me if someone upped the bid on Gaglardi.....from what i have been told it means the winning suitor would have some serious losses to eat until the ship is righted and I am not sure how many people are out there with that appetite especially in light of the current economic climate.

my guess is that it will be Gaglardi but it will take longer than expected for the process to play out

 

[LadyStanley]

http://starsblog.dallasnews.com/archives/2011/08/stars-sale-target-now-labor-day.html

Deal "trudging" forward. Now looking like post-Labor Day holiday target date.

The big issue once again is not between Tom Gaglardi and determining a sale price, it is between the lenders and lawyers and determining not only how money gets split up, but also how the court case will work.

Edit
Lenders Monarch & Chase really pushing to complete ASAP as they don't want to fund player's salaries (first check goes out 10/15).

 

[MetalGodAOD*]

Th end may be in sight soon, seems the final hurdle is the lenders fighting for who gets what.

 

[LadyStanley]

Not so fast.


http://www.dallasnews.com/sports/da...at-he_s-been-working-on-bid-to-buy-stars-.ece

Former MLB Texas Rangers CEO Chuck Greenberg confirms he's been working on bid to buy stars.

Says that Gaglardi is his toughest competitor, and the one who wants it more will own the team.

 

[vofty]

per @Razor5Hole

That light at end of tunnel just got brighter. Tom Gagliardi signed papers yesterday. Court proceedings are next. #newchapteriscoming

 

[MetalGodAOD*]

Mark gives us an update:

The sale of the Dallas Stars is ready to take the next big step forward. A source said the process is expected to move into bankruptcy court in Delaware within the next two weeks. The expected date for the filing right now is September 14.

The Stars declined to comment on Friday.

Vancouver businessman Tom Gaglardi has been working for more than a year on finalizing a purchase agreement for the Stars, which includes the club and half interest in the American Airlines Center.

Although Gaglardi would have a signed purchase agreement it doesn’t mean he is guaranteed to be the club’s new owner. His offer would be what is considered a stalking horse bid. Other potential bidders will be given a chance to top it in the bankruptcy proceedings.

Among the bidders who could be in the mix:

*Irving businessman Billy Quinn, who is the Managing Partner of Natural Gas Parnters

*Allen Americans owner Doug Miller

*Former Texas Rangers CEO Chuck Greenberg

Although the case is expected to move into the courts this month, it could be a couple of months at least before the sale is finalized and a new owner is in place. It will depend on the competing bids.

http://espn.go.com/blog/dallas/stars/post/_/id/12103/stars-sale-takes-big-step-forward

 

[LadyStanley]

http://www.reuters.com/article/2011/09/12/us-dallasstars-bankruptcy-sale-idUSTRE78B6WT20110912

The Dallas Stars hockey team plans to file for bankruptcy this week with a proposal for a quick sale to a Canadian businessman for about $230 million, according to sources close to the talks.
...
However, other interested buyers for the team, which has been on the block for more than two years, are considered unlikely, and the team could be out of bankruptcy in less than 60 days, the sources said.
Gaglardi is expected to have the support of the National Hockey League and he will keep the team in Dallas, the sources said.
...
Paperwork was being finalized on Monday with a filing expected as soon as Wednesday, two sources told Reuters.
...
"With the Stars, I don't think you'll see a bidding war," said Michael Cramer, who was president of the Stars holding company from 1998 to 2004. He said so long as the deal is considered fair by creditors, he doubted there would be any challenge to the proposed sale to Gaglardi.
Creditors have until Tuesday to vote, although they are expected to approve the plan.
If no other bids emerge, the team's lenders would suffer a loss, the two sources said. Gaglardi is assuming the team's unsecured liabilities, such money owed to suppliers and obligations for deferred pay, the sources said.

 

[piqued]

Well that runs counter to everything else that's been reported. There are expected to be several groups that will try to get in with their own bids after the bankruptcy case begins. It's not like the Gaglardi offer is so unexpectedly high as to preclude any competitors.

 

[parrosfan16]

Dallas Stars to file bankruptcy today

Dallas Stars are expected to file for bankruptcy today. Purpose: to cleanse assets and ensure all outstanding liabilities are taken care of.

http://twitter.com/#!/DarrenDreger/status/113967475120553984

 

[ILikeItVeryMuch*]

http://twitter.com/#!/DarrenDreger/status/113967475120553984

Somehow I do not think this will get the fire and pitch forks like the Devils thread, hypocrites.

Since we are keeping score....

Devils = have not fired for bankruptcy, about to gain a total majority owner.

Dallas = about to file for bankruptcy.

But hey, I am sure this will get the 100 pages of stomach bile like the Devils discussion started by the NY Post slander.

 

[Hounsy]

Well, Dallas is around the floor already are they not. Not saying the Jersey fire sale talk is right, just saying don't think it can be applied to Dallas either way.

 

[MaskedSonja]

This doesn't make it fair or right-but in the Dallas thread (where this will probably be merged lol)I believe it was "expected" that a bankruptcy hearing would take place as part of the facilitation of selling the franchise (and judging from what I am reading about the Devils situation, it might be a similar situation).

Again that doesn't make the situation right.

 

[cbcwpg]

Dallas Stars are expected to file for bankruptcy today. Purpose: to cleanse assets and ensure all outstanding liabilities are taken care of.

Regardless of the reasons why bankruptcy is being filed, as quoted; when people hear the words "bankruptcy" and "NHL", they automatically think "Phoenix Coyotes" and expect the worst. Sometimes filing for bankruptcy is a normal part of doing business and doesn't result in the NHL owning a team for 3 years, but the negative is to be expected.

 

[MaskedSonja]

Dallas Stars are expected to file for bankruptcy today. Purpose: to cleanse assets and ensure all outstanding liabilities are taken care of.

Regardless of the reasons why bankruptcy is being filed, as quoted; when people hear the words "bankruptcy" and "NHL", they automatically think "Phoenix Coyotes" and expect the worst. Sometimes filing for bankruptcy is a normal part of doing business and doesn't result in the NHL owning a team for 3 years, but the negative is to be expected.

Have to admit, a confirmed link of Leafs, Rangers or Habs filing for bankruptcy would implode the BOH boards.....

 

[CGG]

I'm sure Bill Daly is still denying it.

 

[Marv4Life]

Have to admit, a confirmed link of Leafs, Rangers or Habs filing for bankruptcy would implode the BOH boards.....

Montreal almost did. Heck OT but the Dodgers and Cubs filed for bankruptcy. No team no matter how "historic" they are is safe from it.

 

[LadyStanley]

DarrenDreger Darren Dreger
Technically, the NHL has been "financially managing" the Stars in conjunction with the team's lenders, for more than a year.

 

[kdb209]

Montreal almost did. Heck OT but the Dodgers and Cubs filed for bankruptcy. No team no matter how "historic" they are is safe from it.

Note that many sports team bankruptcies and forced sales have been due to the owners outside financial issues, not the operations of the teams - including Hicks (Rangers/Stars), Rigas (Sabres), Sam Zell/Tribune Co (Cubs), the current McCourt fiasco (Dodgers), etc.

 

[Fugu]

DarrenDreger Darren Dreger
Technically, the NHL has been "financially managing" the Stars in conjunction with the team's lenders, for more than a year.

I'm sure Bill Daly is still denying it.

This seems like the proper order of posts.

Note that many sports team bankruptcies and forced sales have been due to the owners outside financial issues, not the operations of the teams - including Hicks (Rangers/Stars), Rigas (Sabres), Sam Zell/Tribune Co (Cubs), the current McCourt fiasco (Dodgers), etc.

What are some examples where it's been due to the team's own mismanagement or lack of success in a market? Or do those teams just get moved?

 

[Kritter471]

This seems like the proper order of posts.




What are some examples where it's been due to the team's own mismanagement or lack of success in a market? Or do those teams just get moved?

Are you referencing this situation or Phoenix? Because the Stars' financial situation has nothing to do with the team's management or success and everything to do with Tom Hicks overextending his assets and losing his shirt in bad real estate investments.

Also, the reason this won't get nearly as much attention as the Devils is that his has been coming for more than a year now. It's an expected development (see: Rangers, Texas sale) rather than a breaking development.

 

[Fugu]

Are you referencing this situation or Phoenix? Because the Stars' financial situation has nothing to do with the team's management or success and everything to do with Tom Hicks overextending his assets and losing his shirt in bad real estate investments.

Also, the reason this won't get nearly as much attention as the Devils is that his has been coming for more than a year now. It's an expected development (see: Rangers, Texas sale) rather than a breaking development.

The other situations, whatever they might be.

 

[Kritter471]

The other situations, whatever they might be.

Okie doke. I kind of figured, but there's been a lot of stupid out there in terms of comments on stories on national outlets so my hackles were already up.

People are acting like this is a surprise and a setback or something when really it's actually a big step forward for the process.

 

[Fugu]

Okie doke. I kind of figured, but there's been a lot of stupid out there in terms of comments on stories on national outlets so my hackles were already up.

People are acting like this is a surprise and a setback or something when really it's actually a big step forward for the process.

You getting your hackles up? Nahhhhhhh.


I was mostly ribbing kdb. He didn't take the bait.