- Nov 17, 2011
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Beat you by a minute...still The Fastest Keyboard In The West (TM)...
If Barroway really thinks he can get $500 million for just 49% of that, he is dreaming, especially if a prospective purchaser is going to assume that portion of the outstanding debt. Might be best perhaps to declare chapter 7 bankruptcy on this and dissolve it?
If Barroway really thinks he can get $500 million for just 49% of that, he is dreaming, especially if a prospective purchaser is going to assume that portion of the outstanding debt. Might be best perhaps to declare chapter 7 bankruptcy on this and dissolve it?
The 49% is not surprising. It represents the stake IA held. He's been looking to off load this for 17 months now.
The 500 million valuation is new not too surprising. Question being, is that valuation to reach a want or need for Mr. Barroway.
Going to be tough for someone to agree to that plus invest money for a new arena.
In guaging for progress on either front, the next BoG meeting is about 2 months away, a decision on letting the auto renewal kick in is in about 5.
I think you mis-interpreted - it says he's seeking to sell 49% of the team, with a valuation of $500M....so Barroway wants $245M.
Which should probably cover what he has in the team.....and then someone else is left with majority ownership, and all of the debt.
Which leads to speculation about why you would seek to sell 49% when Barroway himself made it public how important it was to buy out the IA shares when he did and have everything more consolidated under him.
No real breaking news here. Since Barroway bought out the clowns, he always stated that he was looking for a minority investment. Because he values it at $500 million doesn't mean a thing, as that is a long shot at best. He's probably gaging valuations on Vegas paying$500 million and Seattle $650 million, doesn't mean he'll get that
I think that's a pretty easy answer, assuming Barroway isn't doing a buy-and-flip (and I know several folks around here believe that's exactly what's happening). Barroway and the IceDoofii had what is generously called a "difference of philosophy," and buying them out was the one sure way to eliminate their influence completely. Cortez wrecking his ships on the beach, in other words. Selling a 49% stake to someone who aligns with his thinking would make sense both for his ownership and his pocketbook.
According to Forbes, Barroway is really looking for someone to cover current losses as well as capital calls (money investors put into the team in subsequent years to cover operating losses). So, even if you could find someone who's philosophy of ownership aligns with Barroway, to put that much money into this franchise , money that will mostly be used to just pay the freight...you gotta really ask yourself, what's in it for me.
Incentive or not, though, that's a hell of an outsized valuation and the odds of him finding someone to take the bait are extremely low, IMO.
I think you mis-interpreted - it says he's seeking to sell 49% of the team, with a valuation of $500M....so Barroway wants $245M.
Which should probably cover what he has in the team.....and then someone else is left with majority ownership, and all of the debt.
While I agree with the bolded, I also thought the same of the Carolina Hurricanes and Karamanos' fantasy asking price.....well guess what? He got $540 million valuation. (Lease, playing into part of that). There might just be a sucker out there willing to pony up what Barroway wants
Andrew Barroway Seeking $500 Million Valuation For Arizona Coyotes
To quote:
"Andrew Barroway, the owner of the Arizona Coyotes, is looking to sell 49% of the National Hockey League team at a $500 million valuation, according to multiple sources.
The fact that Barroway is now seeking cash for his team is not surprising. When he bought out his partners I wrote: “Barroway’s buyout of his partners is the riskiest deal I can recall in recent memory. ... Barroway and the Coyotes are now leveraged to the hilt. As of now, the Coyotes have $250 million of debt. There is $100 million of NHL credit facility debt and two loans from MGG Investment Group; one for $100 million with about a 10% interest rate and a payment-in-kind loan for $50 million that would be redeemed in six years for $100 million.”"
Source: www.forbes.com/sites/mikeozanian/2018/07/17/andrew-barroway-seeking-500-million-valuation-for-arizona-coyotes/#7c5fc7003fb7
Paging MNNumbers... Looks like some numbers to compare to your estimates.
Is that 49% stake being sold at 49% of $500M, or is that 49% stake being sold at $500M? There's been sheer lunacy surrounding this saga making it hard to tell if key players were only slightly crazy ($245M for less than half the team) or full-on crazy ($1.025B evaluation for whole team).
Leveraged to the hilt? Barroway's takeover made them seem leveraged to the tip of a fancy tassle dangling from the end of the hilt.
I'm not surprised too much by the timing. Barroway had all the appearances of a quick flipper.
So, questions are:
- Does anyone actually buy-in at this price and become the next turn in the revolving door of owners?
- What happens if potential buyers call Barroway's bluff and he's left holding the bag? Does the NHL have to swoop in to avoid bankruptcy court 2: lost world electric boogaloo attack of the reruns or do they quickly line up a potemkin buyer to 'sell' the franchise to, avoid the courts and keep the illusion of ownership?
Exactly. Which means that there is some incentive built into Barroway's ask. What that incentive is, we don't know yet (although my pal Llama will no doubt winkily hypothesize about it - and who knows, maybe this time he'll be right).
Incentive or not, though, that's a hell of an outsized valuation and the odds of him finding someone to take the bait are extremely low, IMO.
According to Forbes, Barroway is really looking for someone to cover current losses as well as capital calls (money investors put into the team in subsequent years to cover operating losses). So, even if you could find someone who's philosophy of ownership aligns with Barroway, to put that much money into this franchise , money that will mostly be used to just pay the freight...you gotta really ask yourself, what's in it for me.
Andrew Barroway Seeking $500 Million Valuation For Arizona Coyotes
One source believes the deal as being presented would give the new investor a path towards control, if not immediate control.
***
Well that could be your incentive. Come in at 49% and one day, you too can be the lucky full owner of the Coyotes.
If this is true, then Barroway is just looking to get out with some semblance of the shirt he came in with.