St. Louis Blues officially for sale (1/12 NHL "very involved" in finances)

[MaskedSonja]

Hulsizer said once the offers are in to tell him the highest offer so he can determine if he wants to pay more than that amount. If he was not willing to spend money than he would not even be talking about buying the team. If he had a said amount he wanted to spend then he would have offered a number lower than that so he could work his way up. The strategy he is using is to make sure he has the highest bid that shows he is serious about buying the team. It is an auction, its a silent auction and the winner gets to negotiate to buy the team first. Obviously whoever wins the bidding is not guaranteed to get the team but they have the best chance of getting the team.

Call me Cynical (many do lol) but IMO if Hulz wasn't willing to pony up for the Yotes, he's not REALLY interested in ponying up for St Lou-as someone said earlier in the thread, you can't play the game the way he tried to play it in Az, the boys in Missouri don't play that type of game.

I have to cast my lot in that he's trying to buy a team he doesn't have money for, and this whole "call me when it's over" stuff is just fluff for the media. He didn't show with the Yotes that he has anything REMOTE to the clout and finances he needs to buy a team. (And those Peak6 numbers have been run to death on the Yotes boards- the truth is no one TRULY knows how's he's really worth now)

 

[sh724]

Call me Cynical (many do lol) but IMO if Hulz wasn't willing to pony up for the Yotes, he's not REALLY interested in ponying up for St Lou-as someone said earlier in the thread, you can't play the game the way he tried to play it in Az, the boys in Missouri don't play that type of game.

I have to cast my lot in that he's trying to buy a team he doesn't have money for, and this whole "call me when it's over" stuff is just fluff for the media. He didn't show with the Yotes that he has anything REMOTE to the clout and finances he needs to buy a team. (And those Peak6 numbers have been run to death on the Yotes boards- the truth is no one TRULY knows how's he's really worth now)

You cannot compare owning the coyotes to owning the blues. One has a relatively small fan base with no local history has pretty much no on ice success and losses a ton of money every year. The Blues on the other hand sold out every games last season, have a ton of history easily makes money if the team makes the POs. Buying PHX means your immediatly going to be losing lots of money with a long term outlook to making money. Buying STL means all the hard work is done and making money is possible right away.

Comparing buying the Blues to buying the Yotes is like comparing a Maybach dealership in East St. Louis to one in New York.

 

[MissouriBlues2008]

I don't really care about the name of the new owner as long as he has the desire to keep this team in St. Louis, a passion for hockey, and the financial ability to make and keep the Blues competitive.

 

[Overkamp]

Man, these ownership processes seem to drag on and on and on.

From Andy Strickland:

I can confirm Cardinals President Bill Dewitt III is no longer part of the group, led by Tom Stillman, pursuing the St. Louis #Blues

NHL sources also confirm four groups have formally presented bids to purchase the #Blues (including Stillman).

Not every bid should be taken with the same level of seriousness when it comes to the #Blues purchase. There are some pretenders out there

 

[goyotes]

If the Blues have difficulty getting a deal done for a new owner, I leaves me with little hope for the Coyotes....

Hope for the best for you guys, and that the situation gets resolved soon and doesn't linger into the regular season.

 

[Fugu]

Man, these ownership processes seem to drag on and on and on.

From Andy Strickland:

I was just thinking the same thing. Some close so quickly you barely have time to find out anything about the owner (Buffalo Sabres) or when Leipold bought into the Wild.

I wonder how much of the delay was due initially to Checketts wanting to run things after getting a majority owner, which was going to be a nonstarter for a lot candidates I'd presume; then having to cover Towerbrook's portion and how to valuate the team.

 

[Overkamp]

I was just thinking the same thing. Some close so quickly you barely have time to find out anything about the owner (Buffalo Sabres) or when Leipold bought into the Wild.

I wonder how much of the delay was due initially to Checketts wanting to run things after getting a majority owner, which was going to be a nonstarter for a lot candidates I'd presume; then having to cover Towerbrook's portion and how to valuate the team.

I think initially that was a snag in the process. However, since Checketts has said he's selling the whole thing, it's been speculated that he's asking $200 million for the team. (That just isn't going to happen)

Given that he's on the hook for $120 million to Citibank (extended 60 days July 1), it's likely he's not going to get much more than that for the team. I was hoping this would help push the sale through, but we've yet to hear anymore about the loan (if it was extended yet again).

It's been about 16 days since the bids were put in and still no word of a letter of intent to purchase the team.

As a fan you can't help but appreciate what Checketts has done with the Blues franchise since WalMart heir Bill Laurie dumped the team like a red headed stepchild. But his unwillingness to give up power and negotiate in good faith is starting to wear people thin.

 

[Fugu]

I think initially that was a snag in the process. However, since Checketts has said he's selling the whole thing, it's been speculated that he's asking $200 million for the team. (That just isn't going to happen)

Given that he's on the hook for $120 million to Citibank (extended 60 days July 1), it's likely he's not going to get much more than that for the team. I was hoping this would help push the sale through, but we've yet to hear anymore about the loan (if it was extended yet again).

It's been about 16 days since the bids were put in and still no word of a letter of intent to purchase the team.

As a fan you can't help but appreciate what Checketts has done with the Blues franchise since WalMart heir Bill Laurie dumped the team like a red headed stepchild. But his unwillingness to give up power and negotiate in good faith is starting to wear people thin.

Is that all Checketts owes? If I recall, they purchased the team for $150 million from Laurie. I don't remember if that included assumption of any of Laurie's debt. So if Towerbrook put up 70% (75?), wouldn't the be first in line to get their money? Checketts may have borrowed on his own initiative, but would he have been able to use the team as collateral?

 

[Overkamp]

Is that all Checketts owes? If I recall, they purchased the team for $150 million from Laurie. I don't remember if that included assumption of any of Laurie's debt. So if Towerbrook put up 70% (75?), wouldn't the be first in line to get their money? Checketts may have borrowed on his own initiative, but would he have been able to use the team as collateral?

Fugu, I really don't know. There are a lot of details that seem very murky. They don't give anyone a look at the books so who knows about a lot of things. I found this from Jeremy Rutherford's chats July 28th.

Stephen: JR, we’ve all heard of the $120 mil loan Checketts has with Citi now but what exactly is the $120 mil loan for? Checketts only owns 20% of the team and 20% of the reported purchase price of $150 mil is only $30 mil. What’s the rest for? Does anyone have any of their own money in this deal?

Jeremy Rutherford:
The $120 million loan includes the TowerBrook money. The rest was made up by Tom Stillman. But it's not quite $150 million because of the way the sale was structured. It's less than that.

Stephen: JR, on a related note, what happens if the Blues aren't sold by the time Checketts 60 day extension on his loan runs out? Common sense would suggest that Citibank would pretty much have to grant another extension (for another fee of course) but is there any chance of them actually demanding their money after 60 days and thus putting the Blues in default? What all could happen in that disaster scenario?

Jeremy Rutherford:

That's a good question. While you want to guess Checketts would get another extension, if he can prove that the sale process if running smoothly, there's also the chance that Citibank wants its money and Checketts finds himself in a default situation. That would obviously be a worse-case scenario. What would happen to the Blues at that point? Quite possibly the NHL would get heavily involved.

I wouldn't blame anyone for not believing Checketts that a deal will get done before the start of the season. But there are some legitimate reasons to think that Checketts and TowerBrook will be forced to accept the highest bid in the coming months.

http://interact.stltoday.com/discussions/sports/jr-live/LD0725111485/2

 

[LadyStanley]

http://www.stltoday.com/sports/hockey/professional/article_888d3472-4017-5e70-93dd-ee1054e170fe.html

Max Chambers, a Calgary businessman who was once interested in purchasing the Phoenix Coyotes, has been in discussions with Blues' ownership recently, a source close to the situation told the Post-Dispatch.
The front man for Chambers' group is former NHL standout Bryan Trottier, who played 18 seasons in the league and won the Stanley Cup six times as a player and one as an assistant coach.
Chambers entered the picture in the "last few weeks," the source said, and he has "all the financing in place that would allow him to proceed quickly."
...
The sides agreed to sell the entire package: the Blues, the Scottrade Center lease and the Peoria Rivermen of the American Hockey League. The Peabody Opera House, which Checketts also controls, has been mentioned in the sale, although a spokesman for SCP said last month that "our intention is not to sell our interest in the Peabody Opera House."
The Blues' asking price for the package — minus the Peabody — is approximately $180 million, according to another source with knowledge of the process, although Checketts and Caporale both have indicated that it could fetch as much as $200 million.
...
It's unclear how many offers were made before the deadline, but multiple sources have told the Post-Dispatch that there are currently four groups in the mix, three of which are known: Blues minority owner Tom Stillman, Chicago businessman Matthew Hulsizer and now Chambers.
...
The Blues are not yet focusing on one group, but the source said that "it's moving in the right direction."
Once the Blues enter a purchase agreement with a prospective buyer, the sale would need NHL approval. The league's next Board of Governors meeting is Sept. 20 in New York.

 

[sh724]

Is that all Checketts owes? If I recall, they purchased the team for $150 million from Laurie. I don't remember if that included assumption of any of Laurie's debt. So if Towerbrook put up 70% (75?), wouldn't the be first in line to get their money? Checketts may have borrowed on his own initiative, but would he have been able to use the team as collateral?

Towerbrook is 75%

Checketts would have been able to use the team as collateral very similarly to a home loan. The bank buys the house(team) for you, you make payments to the bank, if you cant pay the bank takes the house (team).

As far as who gets what when/if the team sells would depend on the wording of the initial contract between the parties that owned the team. The most obvious example of this would be about 15 years ago when the Texas Rangers were sold George Bush owned a very small part of the team but received a much higher % of the profits than he would have received if profits were split by % owned. Simply because the other owners thought he deserved more of the profit. If the other Blues owners think Checketts has done a really good job and made them a bunch of money he could end up with a higher % of profits kind of like a thank you bonus.

 

[sh724]

Fugu, I really don't know. There are a lot of details that seem very murky. They don't give anyone a look at the books so who knows about a lot of things. I found this from Jeremy Rutherford's chats July 28th.


http://interact.stltoday.com/discussions/sports/jr-live/LD0725111485/2

In regards to the article you posted...I wish people would do their research Checketts does not own 20% of the team he owns a little over 10%. Only a few tenths of a % more than Stillman, who owns exactly 10%. Than the other 4.X% is owned by various people with not enough money in it to make a difference but they still are there. Simple math says Checketts cannot own 20%. Towerbrook and Stillman own 85% of the team

 

[Overkamp]

In regards to the article you posted...I wish people would do their research Checketts does not own 20% of the team he owns a little over 10%. Only a few tenths of a % more than Stillman, who owns exactly 10%. Than the other 4.X% is owned by various people with not enough money in it to make a difference but they still are there. Simple math says Checketts cannot own 20%. Towerbrook and Stillman own 85% of the team

Not sure which part of the chat you're referring. However, I'm just linking to JR's chat, not professing it as fact.

Don't shoot the messenger.

 

[Fugu]

In regards to the article you posted...I wish people would do their research Checketts does not own 20% of the team he owns a little over 10%. Only a few tenths of a % more than Stillman, who owns exactly 10%. Than the other 4.X% is owned by various people with not enough money in it to make a difference but they still are there. Simple math says Checketts cannot own 20%. Towerbrook and Stillman own 85% of the team

Not according to local media:

So Checketts will step out of the way and put his personal stake on the market with the hope of expediting a sale. Checketts and his investment firm, SCP Worldwide, own approximately 20 percent of the Blues. TowerBrook owns 70 percent. Local beer distributor Tom Stillman and other minority investors account for the other 10 percent.

Read more: http://www.stltoday.com/sports/hock...01e-11e0-b1b6-0017a4a78c22.html#ixzz1XzeR9MiL
​

 

[Stang]

Checketts and co rejected a $167 mil bid...claim the team is worth $190

http://www.stltoday.com/sports/hockey/professional/article_15bdcc20-e46a-11e0-820f-0019bb30f31a.html

 

[Overkamp]

Checketts just earned the wrath of an entire city and fan base.

Face palms galore.

Take the damn money. Stop holding the fans hostage.

 

[LadyStanley]

Kinda surprised his lenders don't force him to accept that bid.

 

[cbcwpg]

Checketts and co rejected a $167 mil bid...claim the team is worth $190

http://www.stltoday.com/sports/hockey/professional/article_15bdcc20-e46a-11e0-820f-0019bb30f31a.html

Sorry to break it to Checketts, but the worth of the team is what someone is willing to pay for it. Last team sold in the NHL was sold for $110M with a $60M relocation fee.

Go ahead and hold out for $190M... it will be a long wait.

 

[Guy Legend]

Wow, Chambers made all the quotes to get Blues fans on his side. Talking about a solid cash offer, increasing the payroll - doing whatever it takes to win, praising the market, etc.

Will be interesting to see how Checketts/Gameplan responds to this.

 

[cptjeff]

Sorry to break it to Checketts, but the worth of the team is what someone is willing to pay for it. Last team sold in the NHL was sold for $110M with a $60M relocation fee.

Go ahead and hold out for $190M... it will be a long wait.

And the actual sale price was undoubtedly reduced by the value of the relocation fee, with the buyer holding all the leverage. Essentially, that deal puts the value at $170 million or so, since that's what it's worth to the buyer.

The Sabres brought in $189 million. The Canes just sold an 8% stake for $20 million, which projects out to $250 million for the whole team. Prior to that, Karmanos had an independent appraisal which valued the Canes at $240 million. Both of those within the past few months, the Canes was just a couple weeks ago.

You do realize there's a difference between buying a troubled team and buying a healthy one, right? $190 million seems perfectly reasonable.

 

[Dado]

Checketts and co rejected a $167 mil bid...claim the team is worth $190

Seems like the perfect opportunity for Jamieson and the alleged $400M+ slush fund.

 

[Cirris]

Sorry to break it to Checketts, but the worth of the team is what someone is willing to pay for it. Last team sold in the NHL was sold for $110M with a $60M relocation fee.

Go ahead and hold out for $190M... it will be a long wait.

I think he's looking for a deal similar to the Pegula/Sabres deal. Which was 189 million.he could get something close to that. Like people said, St Louis is an established market.

The Atlanta/Winnipeg deal was an organization looking to get rid of a floundering money losing franchise. Essentially a fire sale.

 

[saskganesh]

I could be wrong, but I never heard of Chambers linked to a 'Yotes purchase before. Who is this Calgary Cowboy? Did he really win that rodeo belt, is his truck really paid for?

 

[cbcwpg]

You do realize there's a difference between buying a troubled team and buying a healthy one, right? $190 million seems perfectly reasonable.

Of course there is a difference between buying a troubled team and buying a healthy one, but that doesn't matter. And maybe $190M sounds good to you and Checketts, and maybe it should sell for that, but again, it doesn't matter. The number $190M is just that, a number.

All that matters is what someone is willing to pay, and so far the highest amount is $167M. And if that remains the highest offer, then that's what its worth. This is not a sellers market ( the NHL ). There are teams being sold or available in many cities, and if you were buying a team, you are going to come in with a low offer.

The whole value of teams can be debated. And the public never knows just how much real money was spent buying a team.

From the article...

"I don’t know what state the process is in right now. Does anyone?" Chambers said. "I mean, I can’t get an answer from Game Plan what the number is. What is the real number? You guys are throwing $190 out. You got $167 from us and I think the next bid is what … $120-130?"

Doesn't seem like anyone thinks its worth $190M

 

[Prussian_Blue]

Wow, Chambers made all the quotes to get Blues fans on his side. Talking about a solid cash offer, increasing the payroll - doing whatever it takes to win, praising the market, etc.

Will be interesting to see how Checketts/Gameplan responds to this.

I want to know more about Max Chambers and where his money comes from. I have seen some anecdotal statements that the basis of his fortune is a series of circa 1900 Chinese government bonds, which may or may not be honored by the current Chinese givernment. Is there a link anywhere that can confirm or deny this story?

How about his other businesses, such as Starleaf Sports Entertainment, Sonoma, Equities, or Great Northern Capital Partners. I have Googled all three names, and come up with virtually nothing. Am I looking in the wrong places, or what?

The bank (Citibank?) is owed $110MM by Checketts, and he's already asked for an extension on the payments. I cannot believe that the lenders would not have forced him to accept that offer, especially since it was allegedly an all-cash deal, unless the bank has some inside information that indicates that Chambers' financing is a house of cards.