Podcast (Audio) Hamilton: People Are Interested In Buying The Sabres

[SnuggaRUDE]

Remember how we all scoffed at the reports that Jackie Vegas was being shopped and had asked for a trade and then it all turned out to be 100% true? You would have to be incredibly naive to think there is nothing to this. No matter what you think about Hamilton or Friedman (I don't think highly of either one) they are not mentioning something like this publicly unless they really trust the source they got it from.

You've got me sold on the first half of your post. Bolded: if history has taught us anything it's that they'll write anything they can get people to click on. Friedman in particular.

 

[jc17]

You've got me sold on the first half of your post. Bolded: if history has taught us anything it's that they'll write anything they can get people to click on. Friedman in particular.

Friedman doesn't seem to lie though, he just provides sort of provides vague statements when he doesn't have anything substantial, or reports on what other people think. What has he said on this matter?

Like has he said hes heard there's a potential transaction or pulling one of the "it wouldn't surprise me if", type if things?

 

[SnuggaRUDE]

Friedman doesn't seem to lie though, he just provides sort of provides vague statements when he doesn't have anything substantial, or reports on what other people think. What has he said on this matter?

Like has he said hes heard there's a potential transaction or pulling one of the "it wouldn't surprise me if", type if things?

Well, yeah he's not going to outright lie. As you allude he's quite adept at making patently unfalsifiable question/statements.

 

[Jim Bob]

Not sure what thread to throw this in, but this is interesting news.

 

[Fezzy126]

Friedman doesn't seem to lie though, he just provides sort of provides vague statements when he doesn't have anything substantial, or reports on what other people think. What has he said on this matter?

Like has he said hes heard there's a potential transaction or pulling one of the "it wouldn't surprise me if", type if things?

Friedman has repeatedly said that he hasn't heard anything about a Sabres sale on his ATW appearances. He also follows it up by saying he can't see the Pegulas going through with it.

 

[Jim Bob]

So, this doesn't seem to have anything to do with creating leverage for the Bills stadium.

 

[sabremike]

Not sure what thread to throw this in, but this is interesting news.

GIVE US OUR TARO TSUJIMOTO BOBBLEHEAD NIGHT!!!!!!!!!!!!!

 

[HogtownSabresfan]

For the love of Christ they are NEVERNEVERNEVERNEVERNEVERNEVER PUTTING A GODDAMNED TEAM IN HAMILTON.

Why exactly? The NHL has territorial rights but it seems unclear that the Sabre's rights don't extend deep into South Ontario. I believe it is 80 KMs from the outskirts of the city you play in. That is very, very close to Hamilton and First Ontario Centre, depending on how it is measured. And the place has gotten major approval for an upgrade. Hamilton agrees to modernization deal for downtown entertainment venues near FirstOntario Centre - Hamilton | Globalnews.ca

Little question, a franchise in Southern Ontario is worth more than one in downtown Buffalo if an owner can pull this off. That said, I don't think the Pegulas will do it. They might sell and let someone else do the dirty work. Just wait.

 

[SnuggaRUDE]

If a marketing guru can make an event out of 'return of the magnet schedule' they're good at their job. In all seriousness some of those promotions are clever, and that they line up sponors for them shows it.

Shame they can't have Chef Ennis Bobble Head Night sponsored by Enzo Sauce. That's just an all around win-win.

Seriously though, if there's not a Tre'Davious White Goalie Academy event someone needs to call me, because they'd just be leaving money on the table. Two words: Cross-Promotion.

 

[Buffaloed]

Why exactly? The NHL has territorial rights but it seems unclear that the Sabre's rights don't extend deep into South Ontario. I believe it is 80 KMs from the outskirts of the city you play in. That is very, very close to Hamilton and First Ontario Centre, depending on how it is measured. And the place has gotten major approval for an upgrade. Hamilton agrees to modernization deal for downtown entertainment venues near FirstOntario Centre - Hamilton | Globalnews.ca

Little question, a franchise in Southern Ontario is worth more than one in downtown Buffalo if an owner can pull this off. That said, I don't think the Pegulas will do it. They might sell and let someone else do the dirty work. Just wait.

Paul Hamilton doesn't have enough money to buy an NHL team.

 

[Tsujimoto]

So--is it safe to say, that from this point forward, the reason for the Sabres existence is no longer to win the Stanley Cup?

If the last 10 years was them trying to win the Cup I'd hate to see what them not trying looks like.

 

[KiwiGriff]

If the last 10 years was them trying to win the Cup I'd hate to see what them not trying looks like.

https://www.espn.com/nhl/news/story?id=6147411

"Starting today," Pegula said, "the Buffalo Sabres' reason for existence will be to win a Stanley Cup."

We seemed to have a lot more shots at winning the cup when it apparently wasn’t even our goal. Not sure what the Sabres were trying to do for the 35 years before that? Win hearts?

 

[Jim Bob]

Attendance will skyrocket now.

 

[Tsujimoto]

Attendance will skyrocket now.

Can we at least get Doug Allen back to sing the anthems again?

 

[LongWayDown37]

Not sure what thread to throw this in, but this is interesting news.

God. I couldn't be less interested in promo tchotchke giveaways. Who needs more shit like this cluttering up their house?

Focus on a quality arena experience. That and a competitive team is all a town like Buffalo needs. On nights the Sabres suck balls, that arena is as depressing as it gets.

 

[Chainshot]

Attendance will skyrocket now.

HAZMAT suits may still be required for some of the nastier stained seats however.

 

[Der Jaeger]

I don't see the Pegula's selling outright. I think they are looking for a minority partner.

 

[TehDoak]

I don't see the Pegula's selling outright. I think they are looking for a minority partner.

I think they are probably exploring all avenues.

A minority sale would essentially be a cash out of the equity they've build. Forbes has the team as valued at 500M. Given the max of PE ownership at 30% (at 20% max per fund), the most they could theoretically cash out would be 150M. My guess is they've probably lost MORE than that over the course of their ownership. They bought the team for 189M in 2011. A full sale at 500M would net them 311M, which, I would guess, probably make this a slightly profitable move for them, maybe close to breakeven. My guess is any sale would include some iron clad leases on the other PSE properties such as the harbor center, etc. Or maybe they bundle everything (Harbor center, Amerks, Bandits, etc) and focus solely on the Bills. Either way, it'd be a complicated sale.

I'm not surprised that they are being hush hush about it as they are asking for the State of NY for oodles of cash for their new stadium. They cashing a 100M+ check in the middle of the process would likely look bad.

But, let's circle back on a few notes on the recent history of the Pegula's and the Sabres

1. Cutting operational costs. From the front office, to the Scouting department, payroll, TV production (no longer sending Sabres TV guys on the road), etc. Cuts across the board
2. Avoiding no ROI items like maintenance at the keybank center, etc.
3. Reduced presence at Sabres games/functions. Has anyone seen the Pegula's in public around the Sabres at all this year? Terry and Kim would at least be in the periphery or the owners box and do occasional PR. It's been silent.

It screams of someone who is simply trying to cut losses. If he is selling the team, a lot of the moves make sense, at least from a spoiled ass billionaire perspective. Still terrible for the fans, but a guy who is just waiting for a sale to go through?

I'm hoping for a new owner and new front office sooner rather than later.

 

[Der Jaeger]

I think they are probably exploring all avenues.

A minority sale would essentially be a cash out of the equity they've build. Forbes has the team as valued at 500M. Given the max of PE ownership at 30% (at 20% max per fund), the most they could theoretically cash out would be 150M. My guess is they've probably lost MORE than that over the course of their ownership. They bought the team for 189M in 2011. A full sale at 500M would net them 311M, which, I would guess, probably make this a slightly profitable move for them, maybe close to breakeven. My guess is any sale would include some iron clad leases on the other PSE properties such as the harbor center, etc. Or maybe they bundle everything (Harbor center, Amerks, Bandits, etc) and focus solely on the Bills. Either way, it'd be a complicated sale.

I'm not surprised that they are being hush hush about it as they are asking for the State of NY for oodles of cash for their new stadium. They cashing a 100M+ check in the middle of the process would likely look bad.

But, let's circle back on a few notes on the recent history of the Pegula's and the Sabres

1. Cutting operational costs. From the front office, to the Scouting department, payroll, TV production (no longer sending Sabres TV guys on the road), etc. Cuts across the board
2. Avoiding no ROI items like maintenance at the keybank center, etc.
3. Reduced presence at Sabres games/functions. Has anyone seen the Pegula's in public around the Sabres at all this year? Terry and Kim would at least be in the periphery or the owners box and do occasional PR. It's been silent.

It screams of someone who is simply trying to cut losses. If he is selling the team, a lot of the moves make sense, at least from a spoiled ass billionaire perspective. Still terrible for the fans, but a guy who is just waiting for a sale to go through?

I'm hoping for a new owner and new front office sooner rather than later.

I don't disagree with what you wrote, but there could be other reasons.

Item 1 you listed: when the Pegula's went with Adams as GM, they talked about the need to cut costs in a COVID environment where they wouldn't be making money.

2. I'd bet the Sabres are looking for NYS to chip in on upgrades. It's probably not a good time to do so when negotiating a deal for the Bills stadium.

3. Sabres suck and people are pissed. What would they do or say? The Sabres are in a rebuilding cycle, which they've addressed continually. They could be just waiting for the ship to finally turn (which it looks to be doing). Also, the Pegula's are not public people. I'd bet they're purposely not coming out after the Eichel trade and another poor season.

 

[BFLO]

Buffalo news just shared stats that season tickets are down from 16,000 in the 2010’s to about 6,500 this year.

Average attendance of 8,500~ is the worst in the NHL since 1999

 

[cybresabre]

LOL. If you Paul Hamilton's girth as the outer edge of Buffalo, Sabres territory might stretch to Toronto.

 

[VaporTrail]

Can we at least get Doug Allen back to sing the anthems again?

I forgot.. what happened with him??

 

[LongWayDown37]

LOL. If you Paul Hamilton's girth as the outer edge of Buffalo, Sabres territory might stretch to Toronto.

Im not a fan of Hamilton’s reporting but this is a really shitty comment about a person.

 

[Tsujimoto]

I forgot.. what happened with him??

He quit because he didn't want to get vaccinated

 

[buffalowing88]

Making fun of Hamilton doesn't negate the fact that this team is in dire straits.

I would honestly be less affected if they move these days. Buffalo as a whole needs to buy into the regional aspect of Southern Ontario as much as possible moving forward.

If/when the borders clear up for good, we need to start positioning the city as a suburb of the greater Toronto region. The Bills are an NFL entity so they're essentially subsidized and fine but good luck with the Sabres. The numbers right now are worse than those of the Cleveland Barons. Let that soak in.