It's still $230M for team AND arena?
Given my reading of some things, yes (though not for a full arena share). It's not all debt assumption though - there are some significant cash payments.It's still $230M for team AND arena?
It's basically half of the arena, with the NBA Mavs holding the other half. I think the partnership between the Mavs and Stars is called Center Operating Company, and the partnership owns the arena. Unsure about repayment of public money used to build the arena.It's still $230M for team AND arena?
It's mentioned that worth of Gaglardi bid is $266M, although numbers don't exactly add up upon speculation. Likely includes assumed debt.
This bid by Tom Gaglardi is gong to make it very hard for Greenberg, et al, to make a qualified bid.
Any bid must be $10 more in worth than Gaglardi, while still matching all the assumed debt that he is taking.
Not to mention, once the sale hits auction each bid must be made in $5 mil increments.
The really depressing developments have been away from the ice, where previous owner Tom Hicks set off the always exciting bankruptcy drama in 2009 when he defaulted on $525 million in loans. That left the banks holding the team and the matter is now before the U.S. Bankruptcy Court in Wilmington, Delaware, where, as of this writing, Gaglardi has the only bid on the Stars. It will all be resolved by Nov. 23, but, this being the NHL, it’s bound to go through a couple of gyrations before then.
Gaglardi is offering about $265 million for the Stars and half of the still lucrative American Airlines Center. That bid, more or less, has been in play for more than a year and, despite rumours that everyone from Dallas Mavericks owner Mark Cuban to former Texas Rangers co-owner Chuck Greenberg are preparing their own offers, no one has stepped up.
At the risk of sounding like a dummy (and that is a risk I take often)...
The AAC is only 10 years old. Add in the Stars and...
At $265M, do the people of Dallas think Gaglardi is getting a good deal???
Considering he's paying almost no cash and simply taking on debt, he probably is OK with it.
That's all that's easily discernible from the documents, but there is a lot more assumed debt from the day-to-day operation of the team, including existing contracts that have not been wiped out by the bankruptcy.The $267m enterprise value on Gaglardi's bid (from the article) has me a bit confused.
I read on Forbes yesterday that Gaglardi's bid is only $50m cash and $100m debt.
http://www.forbes.com/sites/mikeoza...-debt-tied-to-nhl-team-climbs-to-290-million/
That's all that's easily discernible from the documents, but there is a lot more assumed debt from the day-to-day operation of the team, including existing contracts that have not been wiped out by the bankruptcy.
There is also assumed debt WRT the arena (which has I think $200 million of debt associated with it that is also not wiped out by the bankruptcy). Neither of which is spelled out in a direct dollar value I could find before my head started hurting.
For clarification's sake, the $50 million is a direct repayment to the NHL, for what is either an advance or a third-party transaction, and the $100 million is a payment to Monarch, which is a group that bought up a lot of Hicks debt at about 30 cents on the dollar and stands to make a profit off of this mess.
Currently, we're waiting on word on whether the sale process will be sped up and if the Asset Purchase Agreement can be approved by the courts sooner than the current November 23 deadline. This deadline was in place in case of any new bids being submitted to the courts, which would then need to be approved by the NHL and the court system before a November 21 auction. With no bids being submitted, as we assume to be the case, there's a chance the sale could happen much faster than originally thought.
There's no doubt this is what the lenders want and this is what Gaglardi wants. The lenders are looking to sell the team as fast as possible now to avoid having to spend more money on payroll. The Stars are under approval from the courts right now to utilize previously set-aside cash to continue business as before, but there's no way progress can be made until Tom Gaglardi is firmly in change of the organization.
Almost reminds me of the Lightning sale, where Vinik got an arena and some real estate with a hockey team thrown in for free.