Lebrun: Canes Owner Willing To Sell Entire Team

[robertocarlos]

Team values have quadrupled at least in the past few decades, if you think the trend will continue it's a great investment.

Purchase team for $500MM, lose $10MM/year for 10 years, sell team for $900MM. You're still up over 50% on your initial investment plus cash injections. Making a profit annually if you can is just for cash flow purposes.

Can't tell if you are serious. DOW is better investment. NHL team is maybe a tax write-off of loses against other investment gains. Or you could have bought a small house in Vancouver 2 decades ago.

 

[blueandgoldguy]

There is usually a lag period from the point that a pro team begins to experience success to a point at which there is a noticeable improvement in live attendance.

Carolina has basically zero margin for error for making the playoffs.

 

[RicFlairWoo]

Carolina has basically zero margin for error for making the playoffs.

Less margin for error than other teams, but not zero. I think even throughout the whole now-dead 13 game point streak, their odds were never better than 9%? Playoffs were always a slim chance ever since the Canes started this season abysmally. I think a strong start to next year could help fill the house better, if there is a next year. Carolina has most of the pieces for a good team, and plenty of cap space and draft picks to go out and get the remaining ones. It'll be year 4 of Francis's much-cited 5-year rebuild. So far each year has been better than the previous one, even though the difference between years 2 and 3 has been a little thin for my liking.

 

[LetsGoIslanders]

I think it's either Austin, Portland, or Seattle, at this point. I'd lean towards Austin with a couple of years in Houston as a proper arena is constructed.

 

[Jeffrey93]

It sounds like the G&M mail is stating that if Chinese firms are wanting to own teams it would be one outside of the O6 and some of a highest values ones so other teams are just listed as examples.

I highly doubt any Chinese interests really exist for the Canes as we know the Sharks and Stars were lumped in too and not for sale.

Foreign buyers are more likely to align themselves and their investments with properties in major world markets (NY, LA, Toronto etc...) or in a place where they have local interests. Plattner in San Jose being one.

There are so many other sports teams out there in various leagues around the world for international firms to bother with lower profile markets like Raleigh, Arizona etc...I'll even extend that group to Winnipeg, Edmonton and Quebec City if it happens. Those are better served by local ownership with more roots.

I'd think a Chinese firm wanting to get into the NHL AND pull in some dough....would look at a franchise like Carolina and see a potential gold mine. Get in cheap....move the thing....sell in a much better location for an enormous profit....and purchase a stake in a way more profitable franchise. Could end up resulting in no cost to the investors.

Made up numbers for example:
Put in $100M to be a partner in buying and moving the Hurricanes
Sell share of Hurricanes in their new market for $200M
Purchase a portion of a highly profitable team for $100M

End result? Zero dollars lost.....now own a portion of a profitable franchise. Didn't really cost you a penny...but now you own $100M worth of a profitable franchise.

 

[wpgallday1960]

I think it's either Austin, Portland, or Seattle, at this point. I'd lean towards Austin with a couple of years in Houston as a proper arena is constructed.

If The Canes are going to move out of market it sure as hell won't be out west. QC is the only logical choice if a relocation occurs.

 

[Slashers98]

I think it's either Austin, Portland, or Seattle, at this point. I'd lean towards Austin with a couple of years in Houston as a proper arena is constructed.

First time I hear about Austin as a destination, [MOD].

 

[Ernie]

I'd think a Chinese firm wanting to get into the NHL AND pull in some dough....would look at a franchise like Carolina and see a potential gold mine. Get in cheap....move the thing....sell in a much better location for an enormous profit....and purchase a stake in a way more profitable franchise. Could end up resulting in no cost to the investors.

Made up numbers for example:
Put in $100M to be a partner in buying and moving the Hurricanes
Sell share of Hurricanes in their new market for $200M
Purchase a portion of a highly profitable team for $100M

End result? Zero dollars lost.....now own a portion of a profitable franchise. Didn't really cost you a penny...but now you own $100M worth of a profitable franchise.

The optics of Chinese ownership doing this would be a PR nightmare for the NHL.

 

[Gnashville]

If The Canes are going to move out of market it sure as hell won't be out west. QC is the only logical choice if a relocation occurs.

Why? It's their choice where to go not some random fan. Actually it would open up an expansion slot for Quebec.

 

[UnrefinedCrude]

The optics of Chinese ownership doing this would be a PR nightmare for the NHL.

I don't think they see the same things as embarrassing as the general public would.

Big paycheque? All is good.

 

[tarheelhockey]

I don't think they see the same things as embarrassing as the general public would.

Big paycheque? All is good.

They're going to funnel big paychecks to vetted members of the club, not random Chinese investors.

This whole game is about cashing in on franchise values... they're not going to funnel that payoff to someone who just swoops in and cashes the check.

 

[UnrefinedCrude]

They're going to funnel big paychecks to vetted members of the club, not random Chinese investors.

This whole game is about cashing in on franchise values... they're not going to funnel that payoff to someone who just swoops in and cashes the check.

I agree, but if the BoG sees dollar signs for themselves they won't care how it looks.

 

[Elephant Igloo]

Why? It's their choice where to go not some random fan. Actually it would open up an expansion slot for Quebec.

I think you just don't want them in Quebec!

 

[Bruins1233]

I think it's either Austin, Portland, or Seattle, at this point. I'd lean towards Austin with a couple of years in Houston as a proper arena is constructed.

Nobody can compete with UT in Austin.

 

[Gnashville]

I think you just don't want them in Quebec!

I don't want any team moved Carolina or Calgary. I have been consistent in this. Nothing against Quebec but I hate teams moving. I didn't like Quebec leaving for Colorado either. Maybe it's just me and stealing other fans' team is not a classy thing to desire.

 

[HisIceness]

I think you just don't want them in Quebec!

I don't want them in Quebec either! Matter of fact I could live w/o a team in Quebec.

Besides, we all know the next great Hockey hotbed is Myrtle Beach

 

[tarheelhockey]

I agree, but if the BoG sees dollar signs for themselves they won't care how it looks.

I get that, but in this scenario the payday would be going to some random Chinese conglomerate. It does nothing for the BoG if someone swoops in at the 11th hour and cashes in on the franchise value that they've spent decade building up. The BoG doesn't get paid in this scenario, just the new kid on the lock.

If they really want to effect this kind of sign-and-trade type relocation they'll do it with someone who's "in the club" already. There's no incentive for the current group of owners to let someone else cash in like this.

 

[powerstuck]

The optics of Chinese ownership doing this would be a PR nightmare for the NHL.

Meh, Gary is so keen on going to China in 2022 that I honestly doubt it would bother him to get some new Chinese money into the select club.

 

[madhi19]

Canes officially out of the playoff. With all the Olympic mess keeping the media busy it the perfect window for that shoe to drop or the other in Arizona.

 

[TheLegend]

Canes officially out of the playoff. With all the Olympic mess keeping the media busy it the perfect window for that shoe to drop or the other in Arizona.

Sorry Mad.....but nothing ever follows script in Arizona.

 

[Jets]

Sorry Mad.....but nothing ever follows script in Arizona.

As an optimistic 18 year old back in summer 2010 listening to the cupcake summit at 10pm on a sweaty Winnipeg night, I can confirm - when it comes to the NHL nothing about the coyotes or Glendale makes any logical sense. Perceived or otherwise.

 

[madhi19]

As an optimistic 18 year old back in summer 2010 listening to the cupcake summit at 10pm on a sweaty Winnipeg night, I can confirm - when it comes to the NHL nothing about the coyotes or Glendale makes any logical sense. Perceived or otherwise.

I don't have much hope. If we learned one thing in the past decade it's the NHL gift for dragging on unpleasant decisions. Beyond what reason, and good business sense dictate. This is a league managed by gamblers who never learned when to cut their loss.

 

[Grudy0]

I keep thinking back to how everything played out in Atlanta - you guys still believe the NHL has much more power than they do. Don't get me wrong - the NHL had a ton of power when it came to the Coyotes, but that's only when they owned the franchise. They may still have some power over the Coyotes when it comes to credit facilities and the like, but they have no real power over the Canes.

 

[tarheelhockey]

Canes officially out of the playoff. With all the Olympic mess keeping the media busy it the perfect window for that shoe to drop or the other in Arizona.

So just to be clear, there's no new information on this situation but you decided to bump the thread anyway.

 

[Fugu]

And with that, we're up to 1000 posts.


We can start a new "Canes are Sold" thread when it happens.