Phoenix CXXVII: Neither a Barroway Nor a Lender Be

[Killion]

I would love to be a fly on the wall and hear that sales pitch. " We have such a deal for you "... " be a good neighbor and help out a hockey team "....

Even if Sarver was to give Bettman and Silver an hour of his time.... what could they possibly say to him to get him to sign up for giving away revenue just so the Coyotes might possibly tread water ( assuming they even do that well ) ? I just don't see how you sell this as being a positive for the Suns.

To me, unless the gov'ts in the state ( municipal and state ) went to Sarver and told him that the only way he would get a dime for a new arena anywhere would be under the pretense that he would have to share the building with the Coyotes. And even that, being blackmail and all, would probably just end up seeing the Suns being eventually sold / moved out of the state IMO.

Ya, I cant see Sarver responding well to threats. Just not happenin.... And other side of the coin, how does an NHL franchise survive having to split revenues with an NBA franchise thats not in Toronto or a major market? Especially this one? Only a few examples of that working & Phoenix, Arizona.... just not on.

Our next countdown is to the end of the clowns NDA's. No way they all keep quiet when that happen.

This sound a lot like a trial balloon to put pressure on the city of Phoenix to have a two teams one arena deal. I would not be shocked if the NBA is not even on board. I bet if asked they want nothing to do with it. So it ASU all over again. Off course they try again at the state level.

It simply doesnt pass the smell-test madhi, I agree.

I'd bet a large amount of money The NDA's will last longer than Barroway's ownership of this team.

Oh yeah. Unless someone goes Rogue no point in holding ones breath awaiting the salacious details. Those skeletons locked up in the closet indefinitely I'm sure.....

https://arizonasports.com/story/1140482/barroway-completes-buyout-coyotes-minority-owners/

Daly's comment...

“The reorganization is an effort to consolidate and strengthen the ownership and to resolve various disputes among the existing owners,†NHL Deputy Commissioner Bill Daly said. “We believe this will better position the club to achieve a long-term solution in the Valley.â€

**

Would be interesting to see what the disputes were. But like Killion said, probably unlikely.

Ok.... so its totally financed, and I'd read Dalys comment as this transaction being yet one further step towards achieving a long-term solution however.... we are in many ways right back to square one as its.... 100% financed. MGG your new owners of the Coyotes. Barroway the Strawman Owner, the fire still raging and you guys heaping more fuel on the fire with more debt & higher interest rates?.... Cool..... So, what is this "long-term solution" of which you speak Billy? Because it looks to me youve gone & dug yourselves an even deeper hole. But ok. Groovy. Whatever. Barroways' bought the club, retired the NHL debt etc, on the hook, but as he's now up to his ying-yang in debt what happens if he defaults with MGG or whatever these "long-term solutions" might be dont come to fruition in a timely fashion?

 

[Slashers98]

Exactly my thinking. This has all the earmarks of a short-term situation. He's going to flip the team to someone. The question now is who that will be.

What are Barroway's options? Local or not?

 

[Tom ServoMST3K]

What are Barroway's options? Local or not?

What local owner, after the decades of well publicized problem's this franchise has had, decides now is a good time to jump in?

 

[Slashers98]

What local owner, after the decades of well publicized problem's this franchise has had, decides now is a good time to jump in?

I'm pretty sure Legend will give us an extensive list of potential local owners.

 

[Killion]

What local owner, after the decades of well publicized problem's this franchise has had, decides now is a good time to jump in?

There's been a rumour, unverified.... that supposedly 2 super-wealthy individuals who do not reside in Arizona full-time but who do have some business interests in the State were/are interested. Where their from, who they are, whether they plan to make a go of it locally or move the team themselves absolutely no idea. We have seen examples in the past where people have seemingly just magically appeared at the last minute, Vinik in Tampa, Viola in Sunrise.... Tom Gaglardi who completely off-radar did take a long hard look at Arizona, backed off & headed to Dallas where he bought the Stars out of Hicks' BK, assuming a lot of debt. Barroway a different breed than a Viola, Vinik or Gaglardi, so I'm seeing this as a very likely very temporary band-aid situation with a turnover imminent. He's in a position whereby he merely has to service the loan from MGG, cover operating costs & losses for a year (if even that) and sell for Relo, paying off MGG, recouping his losses, turning a cash profit of millions when all is said & done. In no way do I believe, not buying that he's in it for the long haul. No chance. He clearly doesnt have the $$$ and if he did, the cost to resurrect, let alone get a new building up would bankrupt a billionaire.

 

[CasualFan]

Exactly my thinking. This has all the earmarks of a short-term situation. He's going to flip the team to someone. The question now is who that will be.

Coyotes Flip = Yexit?

 

[Killion]

Coyotes Flip = Yexit?

... which could now be in doubt with Mays mis-steps. this as well, things change, sometimes overnight.

 

[AllezlesBleus]

There's been a rumour, unverified.... that supposedly 2 super-wealthy individuals who do not reside in Arizona full-time but who do have some business interests in the State were/are interested. Where their from, who they are, whether they plan to make a go of it locally or move the team themselves absolutely no idea. We have seen examples in the past where people have seemingly just magically appeared at the last minute, Vinik in Tampa, Viola in Sunrise.... Tom Gaglardi who completely off-radar did take a long hard look at Arizona, backed off & headed to Dallas where he bought the Stars out of Hicks' BK, assuming a lot of debt. Barroway a different breed than a Viola, Vinik or Gaglardi, so I'm seeing this as a very likely very temporary band-aid situation with a turnover imminent. He's in a position whereby he merely has to service the loan from MGG, cover operating costs & losses for a year (if even that) and sell for Relo, paying off MGG, recouping his losses, turning a cash profit of millions when all is said & done. In no way do I believe, not buying that he's in it for the long haul. No chance. He clearly doesnt have the $$$ and if he did, the cost to resurrect, let alone get a new building up would bankrupt a billionaire.

Can Barroway do that in a short term period? I mean, if he flip the team, can the others previous investors sue him because he would be selling for bigger profit? What is the possible timetable for a flip?

 

[mesamonster]

Ya, I cant see Sarver responding well to threats. Just not happenin.... And other side of the coin, how does an NHL franchise survive having to split revenues with an NBA franchise thats not in Toronto or a major market? Especially this one? Only a few examples of that working & Phoenix, Arizona.... just not on.

It simply doesnt pass the smell-test madhi, I agree.

Oh yeah. Unless someone goes Rogue no point in holding ones breath awaiting the salacious details. Those skeletons locked up in the closet indefinitely I'm sure.....


Ok.... so its totally financed, and I'd read Dalys comment as this transaction being yet one further step towards achieving a long-term solution however.... we are in many ways right back to square one as its.... 100% financed. MGG your new owners of the Coyotes. Barroway the Strawman Owner, the fire still raging and you guys heaping more fuel on the fire with more debt & higher interest rates?.... Cool..... So, what is this "long-term solution" of which you speak Billy? Because it looks to me youve gone & dug yourselves an even deeper hole. But ok. Groovy. Whatever. Barroways' bought the club, retired the NHL debt etc, on the hook, but as he's now up to his ying-yang in debt what happens if he defaults with MGG or whatever these "long-term solutions" might be dont come to fruition in a timely fashion?

No, this is a short term finance package that MGG has extended! AB has to have something done before the end of the year or all bets are off! My bet is that GB has accepted this plan of AB becoming the majority owner, knowing full well he has taken on more than he can afford. GB has unloaded the league credit line, now it is Citi still with a loan. All of which requires interest payments and make such packages short term in nature. I think AB just went "all in" and expects to have something done before the end of the year. If not, then perhaps GB comes back in or those mysterious other parties enter the fray to take the team in a different direction and possibly in a new market?

 

[Killion]

Can Barroway do that in a short term period? I mean, if he flip the team, can the others previous investors sue him because he would be selling for bigger profit? What is the possible timetable for a flip?

.... well, according to mesas' theory....

No, this is a short term finance package that MGG has extended! AB has to have something done before the end of the year or all bets are off! My bet is that GB has accepted this plan of AB becoming the majority owner, knowing full well he has taken on more than he can afford. GB has unloaded the league credit line, now it is Citi still with a loan. All of which requires interest payments and make such packages short term in nature. I think AB just went "all in" and expects to have something done before the end of the year. If not, then perhaps GB comes back in or those mysterious other parties enter the fray to take the team in a different direction and possibly in a new market?

.... which is entirely possible, sure. its a gamble and if it goes sideways, whomever these International Men of Mystery Buyers might be losing their Mojo... team requiring an immediate sale/relo next spring & with Seattle still in flux they can always play their Quebec City card. Wont have a choice in the matter but of course it wont be framed as such.... and Conference Alignments be damned. Man-made, can be deconstructed no problem. Lame excuse as it was.... As for "Barroways all-in"? How can he lose? Thats not "all-in" mesa. All-in would be 110% commitment to the market, damn the torpedo's & depths that need to be plumbed, come Hell or Highwater Ima gonna make this work or go broke tryin. And where's his ca$h money if he's "all-in"? Totally financed. This is a flip jobbie waiting to happen.

 

[madhi19]

Can Barroway do that in a short term period? I mean, if he flip the team, can the others previous investors sue him because he would be selling for bigger profit? What is the possible timetable for a flip?

We don't know the buyout numbers, but you got to figure the clowns were covered on that score. Meaning their set buyout price was what they estimated could me made in a flip sale anyway. All that could have gone out the window if unmet cash calls happened. He's not flpping it this summer that for sure. Otherwise why bother with the buyout? Unless off course Barroway had a hard deadline to meet, and the buyout was just the only way to stay in charge long enough to conclude the real sale.

 

[GuelphStormer]

True to his nickname here ... Borrowaway.

So, what's the best guess on how much he has on this new loan from MGG? $150M? $250M? More? and at what sorta interest rate? 9%? 10%? FIG was what, 10%?

so now just the interest on this loan is what? $13.5M to $25M? yeah, this baby's gone. no way this arrangement could possibly work for more than this one last, lame duck season in town. with an actual reduction in ticket sales and revenues (plus tarp expenses ... ), this upcoming lame ducker is fleshing out to be even higher expenses coupled with even lower revenues. yikes.

a financing scheme like this for any other franchise anywhere would be laughed out of the room.

 

[TheLegend]

I'm pretty sure Legend will give us an extensive list of potential local owners.

Actually.... Feckless covered it way back up the thread on who the mystery suitors could be so nice fail there.

 

[Tom ServoMST3K]

I never got a sense of the relationship between Barroway and his partners.

 

[The Feckless Puck]

True to his nickname here ... Borrowaway.

So, what's the best guess on how much he has on this new loan from MGG? $150M? $250M? More? and at what sorta interest rate? 9%? 10%? FIG was what, 10%?

so now just the interest on this loan is what? $13.5M to $25M? yeah, this baby's gone. no way this arrangement could possibly work for more than this one last, lame duck season in town. with an actual reduction in ticket sales and revenues (plus tarp expenses ... ), this upcoming lame ducker is fleshing out to be even higher expenses coupled with even lower revenues. yikes.

a financing scheme like this for any other franchise anywhere would be laughed out of the room.

...and the recent fast-tracking of Key Arena renovations seems to hold greater weight now, doesn't it?

There's no way a high-interest loan of that nature is for anything else but a buy-and-flip, particularly not with a guy whose personal wealth is as relatively meager as Barroway's. Even if the white elephant of an East Valley arena deal were to miraculously emerge, it won't be Andrew Barroway cutting the ribbon.

 

[Slashers98]

Actually.... Feckless covered it way back up the thread on who the mystery suitors could be so nice fail there.

What fail? The article mentions 2 groups, but doesn't say anything else...

Be more specific.

 

[TheLegend]

What fail? The article mentions 2 groups, but doesn't anything else...

Be more specific.

Reread what Feckless wrote in regards to whom his thoughts were on those two groups.

 

[AllezlesBleus]

...and the recent fast-tracking of Key Arena renovations seems to hold greater weight now, doesn't it?

There's no way a high-interest loan of that nature is for anything else but a buy-and-flip, particularly not with a guy whose personal wealth is as relatively meager as Barroway's. Even if the white elephant of an East Valley arena deal were to miraculously emerge, it won't be Andrew Barroway cutting the ribbon.

In that regard, can Seattle welcome a NHL team while doing renovations in the Key Arena?

 

[The Feckless Puck]

In that regard, can Seattle welcome a NHL team while doing renovations in the Key Arena?

They'll have a year to "git 'er done." I think that's eminently doable. And then they can hang there until SoDo goes through.

 

[Killion]

... a financing scheme like this for any other franchise anywhere would be laughed out of the room.

... absolutely. and absolutely galling how hypocritical the NHL's posturing has been & continues to be with its utter nonsense about purchaser requirements, cash-to-financing, and I would go a lot further in this case in fully vetting a potential owners bona-fides. their actions beginning in 2009 make a mockery of such pretensions. the more I think about this the more I feel it in many ways mirrors the 2013 deal with Fortress's loan to IA only instead of the loan being backed by the City of Glendales $225M "Mgmnt Fee", the $15M annual going directly to service that loan, this one backed by the franchises portability value. what its worth elsewhere.

 

[cbcwpg]

Someone check what Barroway is wearing on his feet...

If he's wearing his team flip-flops... look out.

 

[Llama19]

 

[JimAnchower]

Someone check what Barroway is wearing on his feet...

If he's wearing his team flip-flops... look out.

Any team issued galoshes for a potentially rainier environment?

 

[Slashers98]

They'll have a year to "git 'er done." I think that's eminently doable. And then they can hang there until SoDo goes through.

Nothing is going to happen short term at Key Arena. It's not an option for the Coyotes.

 

[Mightygoose]

So at the end of day, Barroway really couldn't find an investor (s) to buy out IA and effectively do it on his own.

With that in mind, thr AMF long gone and an arena plan or two have failed already mainly because the team could not contribute enough money to get enough public officials to bite.

How on earth can Mr. Barrow make any sizable contribution to a new shared arena with the Suns without major public dollars that is not even available. Has the Sheraton been sold yet?

I would think that has to happen before a conversation starts...never mind Sarver's role