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

[Fugu]

http://www.sportsnet.ca/hockey/2011/11/15/stars_sale/

Gaglardi will be announced as the new owner of the Stars on Friday, press conference Monday.

It's been a rough three years:

The Stars have reportedly lost $91.5 million over the last three seasons and are projected to lose $31 million in 2011-12.

Aren't those figures awfully similar to what Phoenix was losing under Moyes? Looking very briefly at some of the docs above, revenues were roughly $78 million last year?

 

[Killion]

It's been a rough three years:

And it could get rougher. Rumor up here has it Gaglardi plans to relo the Stars to Surrey (a suburb of Vancouver for those who may not have heard of it) in order to extract vengeance on his Arch Enemy & Nemesis; Francesco Aquilini.

 

[leoleo3535]

A hockey man with big $.

Great news.

 

[CBJ goalie]

Great news!
But don't go adding players to the roster - they're showing what a team can do with the right pieces in place.

Brad who?

 

[Hawker14]

Looking very briefly at some of the docs above, revenues were roughly $78 million last year?

Another of the documents show another $8m in arena income, but doesn't specify the revenues.

These filings are so very and nicely convoluted. Another fine job from $450/hr lawyers !

 

[knorthern knight]

According to Sportsnet, current players including Shane Doan of the Coyotes and Jarome Iginlia of the Flames will be part owners of the Dallas Stars. Isn't this a major conflict of interest???

 

[LadyStanley]

According to Sportsnet, current players including Shane Doan of the Coyotes and Jarome Iginlia of the Flames will be part owners of the Dallas Stars. Isn't this a major conflict of interest???

Conflict of interest? Perhaps. Major? No.

Doubt their ownership portion is anything like a "controlling" share and will probably have very little say in the day-to-day running of the team.

 

[MAROONSRoad]

Everyone is way to hell bent on who owns teams and this includes every team not just the Stars, whether they are profitable and what the attendance is like.
How about, you leave those issues to the owners, the number crunchers and the bank people and you just simply enjoy the team for what they should be to us - A Professional Hockey team who go out on game nights and give us nail-biting, gripping and exciting action.

Kev.

You realize you are posting this in the Business of Hockey Forum and not the forum for discussing the actual game of hockey, right?

 

[kaiser matias]

According to Sportsnet, current players including Shane Doan of the Coyotes and Jarome Iginlia of the Flames will be part owners of the Dallas Stars. Isn't this a major conflict of interest???

I don't think that's what the article is saying. Those guys are the owners of the Kamloops Blazers, which is what is being said. I think it is only explaining the Gaglardi is co-owner of the Blazers with all those guys. He will be the only owner of the Stars.

 

[JuniorNelson]

Did Gaglardi act alone in Dallas? People will talk about it for years.

Team isn't going to Canada. It's going to Portland, IMO.

 

[kevkev]

You realize you are posting this in the Business of Hockey Forum and not the forum for discussing the actual game of hockey, right?

Yes...

I still stand by what I said. There are plenty more solutions that "move the team to Canada".

Kev.

 

[MetalGodAOD*]

Did Gaglardi act alone in Dallas? People will talk about it for years.

Team isn't going to Canada. It's going to Portland, IMO.

MOD

Read back a page or 2, this team is not even close to moving.

Doan and iginla are part owners of the Blazers with Gaglardi, not the Stars.

 

[LadyStanley]

ESPN_NHL 1:37pm via ESPN News Sources: Jim Lites to return as president of the Dallas Stars - es.pn/rZlyoZ

 

[vofty]

NHL Board approves Gaglardi via fax vote
http://espn.go.com/blog/dallas/star...ce-nhl-board-approves-gaglardi-as-stars-owner

 

[MetalGodAOD*]

Thank hockey jesus! We'll finally have a new owner in less than 48 hours.

 

[ps241]

Did Gaglardi act alone in Dallas? People will talk about it for years.

Team isn't going to Canada. It's going to Portland, IMO.

This team is not moving period......the situation in Dallas has been and will be very attractive

congratulations Dallas you have an owner that is young, rich, and passionate about hockey. He is not a financier or huckster money man type he is a detail oriented hands on owner operator of a large company so he knows how to run a business not just acquire one.

He loves to win and hates to lose.....if you guys are throwing things at the tv on a night when you get blown out at home by Florida you can bet he is to (ok not throwing things but you get the point)

He does not I repeat not flip assets......they are a buy and hold family

Vancouver vs Dallas will now be a rivalry (even if the teams don't know it) and they will have to separate the owners boxes like they do soccer fans in Europe (can I hear an amen brother Killion )

 

[ps241]

MOD

Read back a page or 2, this team is not even close to moving.

Doan and iginla are part owners of the Blazers with Gaglardi, not the Stars.

Correct along with Recchi and Sydor.

Kamloops Blazers of the WHL not Portland Trail Blazers

 

[phil7488]

Per Defending Big D.com

The is no relocation looming around the corner.

This is perhaps the biggest point I want to make and something we've had to reiterate several times over the past year. Yes, Tom Gaglardi is a Canadian businessman from the Vancouver area. Yes, there has been a push in recent years to move struggling franchises back to Canada. The Dallas Stars, however, are not under any such threat.

For one, the NHL must approve of any move. The Dallas Stars, prior to the financial collapse of Tom Hicks' empire, were one of the best teams in the NHL in generating revenue. The sale of the franchise includes ownership of half of the American Airlines Center, one of the most potentially profitable arenas in the NHL. The Stars are a shining example of how hockey can work in non-traditional markets -- and let's not forget that the Dallas-Fort Worth market is one of the largest in North America.

The Stars have been money making machines in Dallas before and they can be again. Unfortunately, the collapse of the financial backing for the Stars coincided with the struggles on the ice; players getting older, failed systems and coaching changes. Not making the postseasn has hurt the fanbase at a time when money available for marketing, public relations and the ability to add quality free agents was just not available. It's been the perfect storm for the Dallas Stars the past three years and it all adds up to what looks like a horrible situation.

The fact remains the team is not heading to bankruptcy because of a lack of support in the area; this is about how the former owner failed to meet his financial obligations while overextending his wallet. The NHL is not going to allow the Stars to move from Dallas, that is a fact.

Plus the Stars have a lease with the AAC through the 2030's.

 

[Fugu]

^^^

I think most observers here agree.

 

[Fourier]

It's been a rough three years:



Aren't those figures awfully similar to what Phoenix was losing under Moyes? Looking very briefly at some of the docs above, revenues were roughly $78 million last year?

Just noticed that Forbes estimated the Stars 2009-2010 operating income to be $6.4M on revenues of $95M.

 

[Fugu]

Just noticed that Forbes estimated the Stars 2009-2010 operating income to be $6.4M on revenues of $95M.

Maybe that's what it should be without the debt Hicks put the team under. The funny thing is that Forbes was reporting on this story and Gagliardi's bid.

 

[Fourier]

Maybe that's what it should be without the debt Hicks put the team under. The funny thing is that Forbes was reporting on this story and Gagliardi's bid.

Don't get me wrong, Forbes can do quality work. In fact, I would bet that the bankruptcy would actually be something they might put some effort into. I do seriously doubt they put any effort of substance into the annual valuation piece though.

I believe the same writers, Michael Ozanian and Kurt Badenhausen, are basically responsible for all four major leagues. on his profile Badenhausen suggests that he spends most of his time digging into the earnnings of sport celebrities.

http://blogs.forbes.com/people/kbadenhausen/

While they will have some research help, it is clear that any sgnificant background work would take far too long for these guys to pump out 4 of these articles per year, and still report on such things as

The skeptics on this forum are not the only ones that have asked about Forbes numbers. We know what several NHL owners have said about these and here is a quote from Mark Cuban:

When asked about the Forbes valuation of his team, Mark Cuban, owner of the Dallas Mavericks, said "It’s meaningless and worthless. You can quote me on that." He added that “No one ever looks at buying or selling a franchise based off of Forbes’ numbers...You might as well go to a second grader and ask him how high can they count"

http://www.businessinsider.com/can-...redict-sale-prices-of-dodgers-and-mets-2011-4

Some related reading on what a more indepth look at valuations might involve:

http://www.ualberta.ca/~bhumphre/papers/ijsf_08.pdf

http://economics.about.com/library/weekly/aa043004g.htm

 

[Killion]

This team is not moving period......the situation in Dallas has been and will be very attractive... Vancouver vs Dallas will now be a rivalry (even if the teams don't know it) and they will have to separate the owners boxes like they do soccer fans in Europe (can I hear an amen brother Killion )

Amen Rev'nd. And you might wanna try & be a little more forceful in dispelling the rumors circulating amongst the Congregation that the Dallas Stars will soon become the Surrey Stars, Tom returning to destroy his arch enemies, the Aquilini's... its just not true.

Or is it?.

 

[Hawkscap]

ESPN_NHL ESPN NHL coverage
Sources -- Court approves Tom Gaglardi to own Dallas Stars -

http://espn.go.com/dallas/nhl/story...-court-approves-tom-gaglardi-own-dallas-stars

 

[LadyStanley]

http://www.defendingbigd.com/2011/1...s-sale-bankruptcy-court-approves-tom-gaglardi
http://www.dallasnews.com/sports/da...ars-owners-nhl-expected-to-approve-today1.ece

Minor paperwork is all that remains before official announcement that sale is complete.