Discussion in 'Fugu's Business of Hockey Forum' started by Bobby Orr, Dec 20, 2006.
Isle of Capri loses out.
What does that mean for the future of the Penguins in Pittsburgh?
Wow, if I was those on the board I would be looking for a new job if the Penguins end up leaving because there is no way they get voted back in.
Basically, Penguins are going to move.
I feel like murdering that entire board myself...
It doesn't mean anything right now. It means that the arena will have to be funded with the "Plan B." It will be up to the Penguins and their new owner to determine its viability.
Who didn't see this coming?
After about 10000 posts from various people saying that the IOC slot lisence was basically in the bag, you kind of had to figure it wouldn't happen.
6 months of listening to "Plan B" talk now...
I think the TV station mentioned earlier that they are willing to contribute 7.5m per year over 30 years.
I feel like murdering the board too, especially since they're all political hacks appointed by Ed "There's more to Pennsylvania outside of Philadelphia" Rendell, but I'm trying to see the bright side of things here - it doesn't mean the Pens are going to move.
It means that financing for a new arena will have to come from "Plan B," which requires a mix of public funds and funds kicked in from the Pens. There are a couple ownership groups out there that have said that they'd keep the Pens in Pittsburgh even if Isle of Capri lost out, one of which is the partnership between Andy Murstein, Mark Cuban, and Dan Marino. With Balsillie having pulled out of the purchase agreement, our best shot is Murstein.
Anyone who said that hasn't followed the process at all. No one ever said the license was in the bag for IOC. Ask anyone on here or in Pittsburgh and they'll tell you the same thing. It was assumed by a lot of people Harrah's would get the license due to ties with Ed Rendell. The Pittsburgh Post Gazette stated several times over the past few weeks that PITG actually had the best chance.
Don't be ridiculous. The only thing it means is that IOC did not win the slots license and we'll get to see if the politicians will put their money where their mouth is.
I love the fact that "being african american certainly helped his case..." sometimes I hate this country.
I'm just going with the posts I've seen on here. Every time there was a new article on IOC, it was posted and all kinds of happy talk happened. I don't care one way or the other, but it's almost like a really bad kids movie. Hopes and dreams are built up and then WHAM. Reality sets in.
I just hope Cuban buys the team so they don't move. Rather it be in Pittsburgh than in Oklahoma or something. To me, it's either Pitt. or Canada. No place else makes sense.
At 6% interest that has a present value of $103 mil. That is maybe, maybe half the cost of the arena. No wonder Balsille flipped out at the staying provision.
Balsille made the right call in bailing. Bettman's stipulations were unreasonable and its a poor business decision to have your hands tied to an investment regardless of its profitability.
It means that whoever buys the Pens will have to take on a significant portion of the arena financing if the sale is contingent on the team remaining in Pittsburgh. Basille's bid of $175 was inflated because he was assuming he was getting a free, state of the art, new arena, with a sweetheart lease.
I think Mario and Co. will have to decide on whether to sell the team to someone who guarantees to keep it in Pitt for something like $120 million or take something like $175 from someone who will move the team to a city that already has a new arena with all kinds of inducements.
It also means PA taxpayers will partially foot the bill instead of getting a free arena.
If a owner will have to kick in nearly $130-million of his own money for the arena ..... I doubt the selling price for the team even approaches $100-million.
The NHL Does NOT Want Any More Canadian Teams!!!
Check Out This Article:
Balsillie balked at last-minute conditions
League wanted to restrict team's move until 2013
Theresa Tedesco, Chief Business Correspondent, National Post
Published: Wednesday, December 20, 2006
If an owner who can give less a **** about the team buys the team and keeps it there but uses it as his own little piggy bank, I don't want to hear Pens fans complaining.
If that part is absolutely true, than JB had every right to walk away from this walking, talking soap opera. What a ****ing joke.
We know you love us Pens fans, Jon. But please, go easy on us today, alright?
Shades of the Expos...Sorry, but it's looks bleak.
All of the previous bidders knew the odds of IOC winning weren't great and yet they all bid at least 150M, including those that said they would work to keep the team here regardless of the slots decision.
The fact is, the total team contribution isn't known yet. Everyone involved has said that there is negotiation room in Plan B for the Pens portion. Given that both the Pirates and Steelers contributed money towards their own buildings and the Pens original plan (pre-IOC) had them contributing money, then I don't see why this will be that big of a deal. The city/county already has spent the money to buy all of the properties and they are planning on demolition soon. They have too much already invested to allow this to fall apart now.
That sounds like a mightly big "if" to be haning your hat on.
I'm having a rough sports week as well with the Giants and the Rangers and who knows what else to come.
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