Forbes: Atlanta Thrashers Will Likely Be Sold For $110 Million

[heavysoul]

I'm just a lurker here, but came across this on Google news and thought I would pass it along:

http://blogs.forbes.com/mikeozanian...hrashers-will-likely-be-sold-for-110-million/

Apologies if it repeats anything that is already known.

Click to read more...

 

[Fugu]

From this article:

The group that owns the Atlanta Thrashers is looking for $110 million for the NHL club from investors that include former Atlanta Braves pitcher Tom Glavine.

I don't want any of that nonsense from soap operas here either.

This article names at least one potential group specifically. This also has been reported by local media who aren't aspiring screenplay writers.....

 

[cbcwpg]

Well, if the $110M is to be believed, it at least shows that the owners of the Thrashers aren't brain dead by trying to ask for the value of the team plus losses ( like some team out west ).

Seriously, $110M seems to be a reasonable price that some local might go for. And the owners of the Thrashers have not tried to pull a Bettman price ( $110M + $130M of claimed losses ) of $240M out of the air, that everyone would scoff at, or best case, a city gov't would have to help pay for.

You want to sell the team locally in a quick time frame, ask for what the TEAM is reasonably worth. If you want this to drag out for 2 years, do what the NHL is doing with the Coyotes.

 

[Telfo]

seems like a no brainer to me and well worth the risk. cost is a lot lower than the Yotes plus they lose half the amount of money and can only get better.

 

[Jesus Christ Horburn]

The good: at only 110 million, there is an excellent chance the team will sell.

The bad: if no one in Atlanta is willing to pay 110 million for the team, then they shouldn't even be there to begin with.

 

[Hawkscap]

I found this interesting

The attraction for a buyer is that the NBA’s Hawks, who share Philips Arena with the Thrashers, are responsible for the arena’s bond payments. The hockey team is debt-free and under the terms currently being discussed would pay a flat rent that would net the team about $7 million in non-ticket revenue while the owners of the basketball team ran the arena.

 

[GSC2k2*]

The good: at only 110 million, there is an excellent chance the team will sell.

The bad: if no one in Atlanta is willing to pay 110 million for the team, then they shouldn't even be there to begin with.

This is Ozanian's opinion. He has not even quoted a single source, for crying out loud.

In recent years, since time immemorial, two sources were required to publish something. In the past few years, as competition has intensified, one source now seems to be the requirement. Apparently at Forbes, the requirement has been reduced to ZERO sources, not counting yourself.

 

[Fugu]

This is Ozanian's opinion. He has not even quoted a single source, for crying out loud.

In recent years, since time immemorial, two sources were required to publish something. In the past few years, as competition has intensified, one source now seems to be the requirement. Apparently at Forbes, the requirement has been reduced to ZERO sources, not counting yourself.

He does say the ASG "is looking" for that amount. Nowhere does he say that's his assessment of the team's worth and that is what he believes they'd be asking. The fact that he doesn't make it clear is a point though.

Here's the entire quote again:

The group that owns the Atlanta Thrashers is looking for $110 million for the NHL club from investors <snip>.

Fairly clear he's saying that is what ASG wants the way I read it.

 

[Dado]

Without knowing the lease arrangement, current or (prospective) future, it is difficult to put the $110M in context.

EDIT: I see they're currently netting $7M a year FROM the arena. The big question is whether ASG would be willing to continue that arrangement with a third-party owner.

 

[ThrasherMinion]

read the whole article....

The article gives good info that seems factual enough about the rules of the $110 and the fact that Glavine is involved.

The Thrashers are DEBT FREE and would not be on the hook for any of the new loan payments. They would recieve 7 million in profit from the arena concession and sales.

He has said there's an offer for the Hawks and arena separately (that might be a new group of Gearon and Seydel), but the last paragraph says that TNSE is ready to offer $170 if they lose Phoenix with $60 mil. going to the NHL for relocation fees.

Now, if Glavine does come up with a group, there's no reason for ASG to sell to Winnipeg because the money to ASG is the same either way.

 

[Finlandia WOAT]

read the whole article....

The article gives good info that seems factual enough about the rules of the $110 and the fact that Glavine is involved.

The Thrashers are DEBT FREE and would not be on the hook for any of the new loan payments. They would recieve 7 million in profit from the arena concession and sales.

He has said there's an offer for the Hawks and arena separately (that might be a new group of Gearon and Seydel), but the last paragraph says that TNSE is ready to offer $170 if they lose Phoenix with $60 mil. going to the NHL for relocation fees.

Now, if Glavine does come up with a group, there's no reason for ASG to sell to Winnipeg because the money to ASG is the same either way.

So if we take the article at face value, that means that TSNE is ready to MATCH whatever local offer is offered to ASG.

Smart business plan. Don't overplay your hand.

 

[Dado]

Well, I personally feel Atlanta (and the South in general (I mean Dixie south, not desert south)) is a good fit for hockey (assuming TPTB don't neuter the game), I loved Glavine as a ball player, and I have college roots in the town, so I hope a solution can be worked out.

 

[BrianL*]

So if we take the article at face value, that means that TSNE is ready to MATCH whatever local offer is offered to ASG.

Smart business plan. Don't overplay your hand.

If there is an offer to keep the team in Atlanta, TNSE doesn't even enter the equation.

 

[Finlandia WOAT]

Well, I personally feel Atlanta (and the South in general (I mean Dixie south, not desert south)) is a good fit for hockey (assuming TPTB don't neuter the game), I loved Glavine as a ball player, and I have college roots in the town, so I hope a solution can be worked out.

Oh no! Someone hacked Dado's account!

 

[headsigh]

Well, I personally feel Atlanta (and the South in general (I mean Dixie south, not desert south)) is a good fit for hockey (assuming TPTB don't neuter the game), I loved Glavine as a ball player, and I have college roots in the town, so I hope a solution can be worked out.

Is this the same Dado?

 

[Dado]

Oh no! Someone hacked Dado's account!

Come again?

I've said repeatedly that I feel Atlanta should be a good bet, and the league should take advantage of the extremely strong existing regional rivalries in other sports (ACC/SEC) by fostering hockey rivalries between Georgia, Tennessee, Florida and the Carolinas.

The problem will always be finding someone willing to pony up the buckeros to make it happen, and that's no easy task.

Fiscal realities are what they are...regardless of what I personally might like to see.

 

[ThrasherMinion]

If there is an offer to keep the team in Atlanta, TNSE doesn't even enter the equation.

This.

This is why I am not worried about relocation if this report is accurate, which it seems to be since it's from an uninterested party. Glavine will put a group together, like I said, I totally believe Kasten has been working behind the scenes with Gearon and Glavine since the end of the hockey season.

If the numbers are close, they get more value for the Hawks/arena sale by keeping a 2nd anchor. And also, the personal positive return for keeping a team in Atlanta would behoove ASG.

 

[Alberta]

So if we take the article at face value, that means that TSNE is ready to MATCH whatever local offer is offered to ASG.

Smart business plan. Don't overplay your hand.

I think you have it backwards. True North is willing to buy the team for $110 million (plus NHL's relocation fee). Atlanta Spirit Group is turning to the ONLY ownership group interested in buying the team and keeping it in Atlanta and saying "$110 million, match it and it's yours."

 

[peter sullivan]

If the Phoenix Coyotes do not move to Winnipeg after the NHL unloads the team, then True North Entertainment and Sports will make an offer for the Thrashers. True North would pay $170 million of which $60 million would go the NHL as a relocation fee.

not that there is any accuaracy to this article whatsoever, but if for a moment we suspend disbelief, it sounds like the offer from TNSE will come very shortly (a couple of weeks at the latest).....how long does that offer sit on the table waiting for a local investor to show up and match it?......does ASG wait and risk owning the team next year or grab the money now and rid themselves completely of the headache?

 

[gretschdrum]

If the Phoenix Coyotes do not move to Winnipeg after the NHL unloads the team, then True North Entertainment and Sports will make an offer for the Thrashers. True North would pay $170 million of which $60 million would go the NHL as a relocation fee.

not that there is any accuaracy to this article whatsoever, but if for a moment we suspend disbelief, it sounds like the offer from TNSE will come very shortly (a couple of weeks at the latest).....how long does that offer sit on the table waiting for a local investor to show up and match it?......does ASG wait and risk owning the team next year or grab the money now and rid themselves completely of the headache?

Interesting. Yet more interesting, how would you feel about both Phoenix and Atlanta staying put (with new, local ownership) and Edmonton moving to Winnipeg? Bettman has already stated that they'd NOT stay Rexall Place. I'm just saying this while we suspend disbelief.

 

[videofarmer]

They haven't even made the offer yet? A couple of weeks? I thought the announcement was going to be tomorrow?

 

[headsigh]

They haven't even made the offer yet? A couple of weeks? I thought the announcement was going to be tomorrow?

Which announcement? The one that reported us moving was recanted by the source minutes after.

As for the offer, they sort of pre-emptively offered it with the NDAs being sent and all.

 

[dj4aces]

Which announcement? The one that reported us moving was recanted by the source minutes after.

The "announcement" from the comic book guy. It was never recanted, but he did say "Rumor? We'll find out."

suspend disbelief and learn that Winnipeg is in a lurch because the gods of the deep pockets TNSE will purchase Phoenix, Atlanta, Edmonton, Dallas, St.Louis, and Toronto and all will play at one time in a smallish arena next fall in a place that still has snow coming down on May 2.

Don't knock the snow, buddy! Being a Michigander, it's one of the many things I miss about being up north

 

[nobuddy]

Since $110 is pretty low, could this turn into a bidding war between Glavine's group and True North?

Glavine is willing to pay $110

True North offers more, etc., etc.

 

[headsigh]

Since $110 is pretty low, could this turn into a bidding war between Glavine's group and True North?

Glavine is willing to pay $110

True North offers more, etc., etc.

good question. I want to say the precedent is that an ownership group takes the local offer first if say, a local group & a different group matches the price... I don't know if that's the same for a bidding war.