Phoenix LXXX: Is there another way out?

[sipowicz]

MOD

Furthermore, I think someone else weighs into this... I'm leaning towards NBC... There are 7 canadian teams and 23 US teams... If relocation to Canada happens, that brings the number down as to the chance of games that NBC is able to broadcast Nationally on US television... Correct?

Sometimes I wonder if the NHL needs to offer something to NBC to shut them up too

How much does the NHL pay NBC to televise their games no one watches?

 

[RandR]

The Forbes report gives further proof of 2 things we largely already knew:

1. The league is absolutely doing everything it can to keep this team in Phoenix.

In the absence of a good explanation for why, I still resort to the potential impact on the $2billion NBC deal if they lose a 2nd top-15 U.S. TV market.

2. Buying the Coyotes and keeping them in Glendale only makes business sense if there is a massive break on the purchase terms from the NHL plus a massive break on the AMF (or combined with some other revenue flow) courtesy of the CoG.

The league did its part here; however, I can't see the new CoG being willing or able to do its part.

So, my best guess is that one more sale of the Coyotes falls through. Question then is does the NHL keep the team for another year? I really can't see how, especially since they would likely have to start paying rent instead of being paid to "manage" (ahem) the arena and play rent-free. So even if the league could take an annual hit on the NBC deal, I can't see how that wouldn't be far surpassed by the potential operating loss for each full season they keep this team where it is.

 

[wunderpanda]

Coyotes were on TSN more than nbc I think. I could see fox sports arizona complaining but they might have been doing contracts 1 year at a time.

http://www.bizjournals.com/phoenix/stories/2009/05/11/daily38.html

Pilson pointed out that the Phoenix market represents just 1.4 percent of total TV homes, which “is not a significant enough change to warrant re-opening any of the TV contracts.”

That was in 2009, percentage wouldn't change drastically since then. I don't think there is tv contract conspiracy. (might be another conspiracy tho )

 

[CrazyMonkey1208]

I've always thought the same thing, if attendance in Glendale is as bad as it looks, how many people in Phoenix are tuning in to watch the Capitals play the Bruins 3,000 miles away

 

[BnGBear1970]

I just caught an interesting sequence of comments on the Forbes article. A user identified as Trent Hess asked:

In what manner does RSE expect to collect the 120M from the CoG? Over five years? Ten? Fifteen?

Which prompted the article's author, Mike Ozanian, to respond:

Trent, Fortress puts in most of the $120 million when deal closes and all within 5 years.

Does that indicate to anyone else that Fortress expects an aggressive repayment schedule? I'd like to think Ozanian just misread the comment and responded with a timetable of when the $120 million would be available to RSE, because there's no earthly way Glendale is giving ANYONE $30 million a year to run jobing.com Arena.

 

[gravyleaves]

Does that indicate to anyone else that Fortress expects an aggressive repayment schedule? I'd like to think Ozanian just misread the comment and responded with a timetable of when the $120 million would be available to RSE, because there's no earthly way Glendale is giving ANYONE $30 million a year to run jobing.com Arena.

No, "most" in 5 years can mean about $60 million plus 1 dollar in 5. So 12 million a year

 

[JimAnchower]

Does that indicate to anyone else that Fortress expects an aggressive repayment schedule? I'd like to think Ozanian just misread the comment and responded with a timetable of when the $120 million would be available to RSE, because there's no earthly way Glendale is giving ANYONE $30 million a year to run jobing.com Arena.

This comment caught my eye as well. $120 million over 5 years is $24 million a year. Glendale twice gave the NHL $25 million a year, perhaps they are hoping for a repeat.

 

[Matzel]

I've got my eye on the plane piloted by C. Lindbergh headed toward Le Bourget Air Field. Seats for passengers removed for extra gas tanks, but might be enough room in the back for a short guy. And just enough headroom in the cabin to wear a tin-foil hat.

Hilarious!

 

[GF]

This deal will never pass GWI smell test. How can the NHL really expect that COG will fall for this again? History I suppose. Where will Glendale find the money?

Then mid summer, if COG approve this deal, chances are that it won't pass. Then what? The NHL pays rent? They absorb all losses? And are still looking for an owner next year?

This is beyond crazy. And I hope the NHL and Gary get what they deserve.

 

[NORiculous]

Coyotes were on TSN more than nbc I think. I could see fox sports arizona complaining but they might have been doing contracts 1 year at a time.

http://www.bizjournals.com/phoenix/stories/2009/05/11/daily38.html



That was in 2009, percentage wouldn't change drastically since then. I don't think there is tv contract conspiracy. (might be another conspiracy tho )

Is it possible that the Atl move combined with a potential Pho move woulf become important enough to re-open the tv contract?

 

[madhi19]

MOD

Furthermore, I think someone else weighs into this... I'm leaning towards NBC... There are 7 canadian teams and 23 US teams... If relocation to Canada happens, that brings the number down as to the chance of games that NBC is able to broadcast Nationally on US television... Correct?

Sometimes I wonder if the NHL needs to offer something to NBC to shut them up too

That argument been beaten to death already give it a rest. NBC does not care they never show the Yotes and half the US teams anyway. All they really want to air are games from Boston, Pittsburgh, Philadelphia, Chicago, Detroit, The Rangers and maybe the Habs or Leafs as opponent to sprinkle a bit of Canadian flavor to the mix. If anything the new upcoming Canadian TV deals negotiation should push more teams into Canada ASAP.

 

[rj]

Makes me wonder a bit about why Bettman didn't take this route with the JIG.

Unless the JIG had absolutely no money...

I had the same thought last night reading this.

 

[madhi19]

I had the same thought last night reading this.

I heard speculation that financially it is the same deal more or less than the original Jig. Except Jamison never managed to get his part done and since he was the front the NHL got stuck with the guy until the deal came crashing down last January.

 

[manisback121]

I would trust my dog (black lab) in a room with two giant bags of dog food and 5 pounds of cooked bacon more than GB at this point after Forbes report.

And that says something about snowball's chance in hell

 

[Dark4ng3l]

No, "most" in 5 years can mean about $60 million plus 1 dollar in 5. So 12 million a year

Not counting interest...

 

[rj]

I heard speculation that financially it is the same deal more or less than the original Jig. Except Jamison never managed to get his part done and since he was the front the NHL got stuck with the guy until the deal came crashing down last January.

Well if that's the case and the numbers are roughly the same, we can reasonably make the educated guess that Jamison was not able to come up with something in the neighborhood of $45 million then.

 

[gyom999]

Well if that's the case and the numbers are roughly the same, we can reasonably make the educated guess that Jamison was not able to come up with something in the neighborhood of $45 million then.

I guess he should have asked RSE..

 

[madhi19]

Well if that's the case and the numbers are roughly the same, we can say that Jamison was never able to come up with $45 million then.

Or he did but kept losing investors after they took a hard look at the deal. Because of the way it structured and heavily relying on loans that are secured creditors I would not risk a buck owning that team. Whoever front the deal and put their own money to own the team will be wipe out if the team still lose money and can't pay it $205 million loan. And with a 20 years lease Jamison was stuck in Glendale so no flipping to get out from under that deal.

 

[HamiltonFan]

Gary is sure fighting hard to not let Quebec get their team back.

If a Canadian team lost the type of money that Phoenix does annually & the NHL owned them due to bankruptcy they would be gone in a second.

I am still stunned that he even allowed Winnipeg to purchase the Thrashers despite the success & fan support in Winnipeg for the team.

Winnipeg only got their team because there was no viable USA market available at that time.

 

[JMT21]

This Forbes leak just sounds like an astute way for the NHL to truly say they tried everything they could.

Can't imagine the COG will have to think too hard about whether or not to accept this "deal".

COG says "no thanks" and can therefore end up the scapegoat.

 

[Wingsfan2965*]

Anybody else get the idea that the NHL leaked it themselves?

 

[rj]

Winnipeg only got their team because there was no viable USA market available at that time.

And there still isn't. And if there's no viable U.S. market out there not presently being served, what does that say for Bettman's stewardship of the league? If you're going to say he's not at fault, fine, who is at fault then?

 

[King_Stannis]

Winnipeg only got their team because there was no viable USA market available at that time.

Perhaps, but I'm going to give bettman the benefit of the doubt on Winnipeg. He started talking about going back there years before the move and talked of righting a wrong. I don't think Winnipeg was a panic decision of any kind. They were simply at the top of the list for relocation.

 

[King_Stannis]

And there still isn't. And if there's no viable U.S. market out there not presently being served, what does that say for Bettman's stewardship of the league? If you're going to say he's not at fault, fine, who is at fault then?

You could say that he maximized the games exposure in the us to its limits. Maybe we needed to see where that was before we pull back and adjust for markets like phoenix.

 

[Slashers98]

The Jamison deal went south because Greg only came up with $7M of equity. Now RSE and Gosbee have a little more equity, but it's not going to work.

Bettman leaked the story to Forbes, which is a neutral news outlet, to put the blame on Glendale when they don't offer a massive subsidy to RSE.