Leafs, Raptors, FC up for sale (UPD: reports - OTPP have withdrawn sale offer)

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Fugu

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From the Forbes' SportsMoney blog:
The second is relocation. There a good possibility that Phoenix Coyotes or another struggling NHL team could be bought by Research In Motion CEO Jim Balsillie and relocate to Hamilton, in which case the billionaire would have to pay a territorial rights fee to the Toronto Maple Leafs. The timing and amount of that payment is making the sale of MLS&E more complicated because Ontario Teachers’ does not leave $60 million or so on the table.
http://blogs.forbes.com/mikeozanian...-sale-of-maple-leaf-sports-and-entertainment/


Is this his own conjecture/speculation or is there smoke somewhere? Heck, if MTS Center can be an NHL arena..... why not Copps?
 

Killion

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Is this his own conjecture/speculation or is there smoke somewhere? Heck, if MTS Center can be an NHL arena..... why not Copps?

With Oznian Ive noticed it generally is, and Im not big on ripping into the media. But this guy?. Yikes. Like the leagues going to pull a 180 & forgive & forget Jim Balsillie, wind up selling him the Coyotes after all theyve' been through to keep it out of his hands & out of Hamilton?. What does "the Teachers Pension Fund wont leave $60M on the table" mean?. Obviously the guys confused. TNSE pays a $60M relo fee to the league & Oznian figures thats what Balsillie would pay and instead of it going to the NHL it goes to MLSE plus the indemnification fee's, whatever they might be. Alrighty then. With much of Balsillies wealth tied up in RIM, and sure he could have squirreled away close to $2B, is he in a position to even commit at this time even IF the league decided to go ahead?...... The only thing in his article (and as speculated by many here) that does make any sense is the Teachers Pension Fund agreeing to a team in Hamilton in order to cash a big fat cheque before they sell-out, though what that might do to turn off any potential suitors for the Leafs etc is questionable.
 
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Fugu

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With Oznian Ive noticed it generally is, and Im not big on ripping into the media. But this guy?. Yikes. Like the leagues going to pull a 180 & forgive & forget Jim Balsillie, wind up selling him the Coyotes after all theyve' been through to keep it out of his hands & out of Hamilton?. What does "the Teachers Pension Fund wont leave $60M on the table" mean?. Obviously the guys confused. TNSE pays a $60M relo fee to the league & Oznian figures thats what Balsillie would pay and instead of it going to the NHL it goes to MLSE plus the indemnification fee's, whatever they might be. Alrighty then. With much of Balsillies wealth tied up in RIM, and sure he could have squirreled away close to $2B, is he in a position to even commit at this time even IF the league decided to go ahead?...... The only thing in his article (and as speculated by many here) that does make any sense is the Teachers Pension Fund agreeing to a team in Hamilton in order to cash a big fat cheque before they sell-out, though what that might do to turn off any potential suitors for the Leafs etc is questionable.

Actually, in recent times he seems to have been fairly accurate.

You forget the big difference with TNSE moving to a new city vs a team relocating into Leafs' territory. The latter would get a nice chunk of change ~alone~...

That does presume JB can sell off even more stock and has a nice nest egg somewhere.
 

Killion

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Actually, in recent times he seems to have been fairly accurate. You forget the big difference with TNSE moving to a new city vs a team relocating into Leafs' territory. The latter would get a nice chunk of change ~alone~...

In recent times?. Not so much.... And no, Im not forgetting for a second the hefty indemnities MLSE will be looking for should a team be relo'd to Hamilton or anywhere else within, near or bordering on its territorial claims. And I guess we can ditto that, though somewhat lighter in looking the other way towards Buffalo.
 

Hamilton Tigers

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.... And no, Im not forgetting for a second the hefty indemnities MLSE will be looking for should a team be relo'd to Hamilton or anywhere else within, near or bordering on its territorial claims. And I guess we can ditto that, though somewhat lighter in looking the other way towards Buffalo.

Keep in mind that it is the league that determines the amount of any indemnification fee, the same league that currently owns the team Ozanian is talking about.
 

LadyStanley

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Keep in mind that it is the league that determines the amount of any indemnification fee, the same league that currently owns the team Ozanian is talking about.

I thought it was a **negotiated** price of any such territory indemnification fee between the "new" team and the effected team(s). AIUI, the league has no input on the setting of the amount.
 

Killion

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Keep in mind that it is the league that determines the amount of any indemnification fee....

I thought it was a **negotiated** price of any such territory indemnification fee between the "new" team and the effected team(s). AIUI, the league has no input on the setting of the amount.

I've been operating under the same understanding as LadyStanleys' HT. I guess what would be interesting is if we followed your earlier theory, that the NHL itself rather than selling the Coyotes to a new owner in Hamilton, moves the franchise there themselves. What then?. Rather difficult for MLSE to play hardball with the league itself in that unlikely eventuality.

I would also think that If the owner making incursions into another teams territories cant come to an agreement they'd be asking the league to intervene & force a settlement. But initially, it would pretty much have to be between the incoming & existing teams. I suppose the existing team might just tell the league what they wanted & let them deal with it, but Id be surprised if they did as the logistics would require a fair amount of negotiations, back and forths. I guess we could look at the Rockies to Jersey for a template, although that was some 30yrs ago & may be far too rusty to use.

Timings good though, as the Teachers could pick up the indemnification fee on their way out the door or the incoming owners of MLSE could do it in order to pay down whatever debt they incur in acquiring the Leafs, Marlies, Raptors, TFC & the ACC etc.
 

kdb209

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Keep in mind that it is the league that determines the amount of any indemnification fee, the same league that currently owns the team Ozanian is talking about.

I thought it was a **negotiated** price of any such territory indemnification fee between the "new" team and the effected team(s). AIUI, the league has no input on the setting of the amount.

Any relocation fee (paid to the League) will be decided upon by the League - based on it's appraisal of the difference in Franchise Value between the new and old locations.

Any territorial indemnification fees (paid to other Clubs) would normally be negotiated between the team and the affected Clubs - however the League does have the power to dictate terms (even over one of those Club's objections) if those Clubs prove less than cooperative. Under By-Law 36, those teams have no veto power and the League may set the conditions of the sale/relocation when they vote to approve the relo.
 

htpwn

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MLSE sale "stuck in neutral"

Brief update on the sale of MLSE, per Michael Grange of Sportsnet:

"For (Teachers) it’s a very large percentage of their portfolio because the value is so big," said one Bay Street veteran with insight into the business. "But it’s awfully ill-liquid. It’s a hard property to sell at the right price."

"It’s between the shareholders and Teachers and (investment bankers) Morgan Stanley," Peddie said. "It’s a real sensitive time. They’re still exploring the sale, it’s not dead at all but it’s a big number and a complex deal with lots of approvals that will ultimately be necessary and that will involve people well above my pay grade."

The possibility remains that the business stays in the hands of the Teachers for longer than expected. Given that it generates a reported $100 million in profits on revenues of $500 million, they’re in no rush.

"They’re the farthest thing from a distressed seller," said the investment banker.

http://www.sportsnet.ca/hockey/2011/09/27/grange_mlse_sale/

EDIT: Mods, in the past articles have been broken up into separate threads. Given the relatively slow pace of articles being printed and the limited (often repetitive) content they provide, can we just make one mega thread for this sale (similar to the Blues sale, Quebecor's arena situation, etc.)?
 

hdtrax

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I would think that there's definitely no rush involved for the OTPP to force a sale. And its not as if earnings and profits are going to dip at any point soon (even with MLSE's extensive property acquisitions over the last few years) so it's not at all out of the realm of possibility that we see no movement on this front for another 6-12 months.
 

Killion

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Man, Im' with the "Bay Street insider" on this one; "above my paygrade". Talk about complex & complicated... :baghead:
 

Fugu

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Brief update on the sale of MLSE, per Michael Grange of Sportsnet:







http://www.sportsnet.ca/hockey/2011/09/27/grange_mlse_sale/

EDIT: Mods, in the past articles have been broken up into separate threads. Given the relatively slow pace of articles being printed and the limited (often repetitive) content they provide, can we just make one mega thread for this sale (similar to the Blues sale, Quebecor's arena situation, etc.)?


I hate mega threads. Given that this might move at the pace of glacier, perhaps.
 

htpwn

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I hate mega threads. Given that this might move at the pace of glacier, perhaps.

:laugh: Yeah, I know.

But as you say, this looks like it is going to move very slowly and most of it appears to be kept behind closed doors. The average number of articles for every month seems to be 1 and it usually just reiterates what we already know, with only a small tidbit (such as the quote from Peddie in this particular article) that holds something 'new.' A 'megathread' might be the better option in this particular case.
 

Ryan34222

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Balsillie doesn't have the assets to do a whole lot of anything these days.

Even if it were true that he was looking to buy MLSE or if he was lacking funds.. It's a money maker.. And I'd doubt he would have trouble finding financial backers... Same applies if he wanted to buy some other team and put it in SO...


P.S. Killion I didn't bring up Saint Jimmy this time don't yell at me lol
 

hdtrax

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That's fine and all, but I was referring to the fact that he essentially tried to muscle his way into the NHL via Phoenix and that set off a lot of alarms inside the big boy circle of owners and executives. Even if he does get a team one day, it won't be Toronto. Too big a market to give to a guy they don't exactly trust very much.
 

Killion

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Even if it were true that he was looking to buy MLSE or if he was lacking funds.. It's a money maker.. And I'd doubt he would have trouble finding financial backers... Same applies if he wanted to buy some other team and put it in SO...

P.S. Killion I didn't bring up Saint Jimmy this time don't yell at me lol

:laugh: No worries there. Its not exactly a novel idea; many wondering had the Leafs been available as early as 5-6yrs ago if he mightnt' have taken a run at them instead of messing around through Pittsburgh, Nashville & Phoenix. Secondly, if RIM had maintained its share value I dont think it outside of the realm of possibilities that having been denied thrice by the league, if he was still wanting in badly enough, he couldve traded a portion of those shares with cash for the OTPF's majority & acquired MLSE with or without backers. Clearly, he wouldnt be contemplating the relo of an 06 franchise, and certainly not Toronto.

Too big a market to give to a guy they don't exactly trust very much.

I'm afraid Im going to have disagree with you on that one Dapper Don. Though I dont think he'd extend his finances to the point of buying MLSE, if he could & was so inclined, he could off-load the Raptors & TFC to help finance the purchase. As clearly there is no way he'd be contemplating a relo of the Leafs (though the thought is amusing) and due to its flagship status from a financial perspective, Id bet dollars to donuts you'd see a change in the weather in finally welcoming Balsillie into the Club. Theres no bigger "front door" in the league than the Leafs & MLSE. If he was willing & able to buck up the NHL wouldnt have a choice but to accept him.
 

Ryan34222

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That's fine and all, but I was referring to the fact that he essentially tried to muscle his way into the NHL via Phoenix and that set off a lot of alarms inside the big boy circle of owners and executives. Even if he does get a team one day, it won't be Toronto. Too big a market to give to a guy they don't exactly trust very much.

my apologise.. i thought you were refering to his "drop" in cashola
 
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