Phoenix LXXX: Is there another way out?

[nelina]

Here are some comments from Sherwood at the last meeting

Council members Gary Sherwood and Norma Alvarez voted against the tentative plan.

Sherwood said he was disappointed that the council didn’t more deeply examine the possibility of setting aside more funding for the Police and Fire departments, which have dealt with a growing caseload amid diminishing staff.

Then a little later:

Sherwood said keeping the Coyotes at Jobing.com Arena is crucial to keeping the Westgate Entertainment District alive

Seems he knows that black + white makes grey !

 

[madhi19]

Ya, a salt block. If its even remotely true & it does make sense in blocking a flip off-market, insuring league control, then their truly desperate. This is getting crazier by the day.

They gonna flip it don't get me wrong but they won't share any profit with RSE.

Here are some comments from Sherwood at the last meeting

Council members Gary Sherwood and Norma Alvarez voted against the tentative plan.

Sherwood said he was disappointed that the council didn’t more deeply examine the possibility of setting aside more funding for the Police and Fire departments, which have dealt with a growing caseload amid diminishing staff.

Then a little later:

Sherwood said keeping the Coyotes at Jobing.com Arena is crucial to keeping the Westgate Entertainment District alive

Seems he knows that black + white makes grey !

If the CoG go stupid again and spend 12 Million a year on this mess they better find 2 or 3 more million to keep the cops and firefighters happy. This is one hell of a minefield they got there.

 

[gifted88]

*Hockey Central At Noon revealed that RSE does not have an out close to flip the team after five years. What the NHL will be doing is take it back and pay them $40 million. Are these fools just renting a team for a million a year? loll This is so dysfunctional I don't really know where to start.

*Take it with more than a grain of salt.

ha ha ha, maybe Pastor will be ready in 5 years...lol

 

[Mungman]

Don't feel too bad for CoG. Instead of $50 million in the hole they could have received that amount from Balsillie. They didn't even consider siding with him for a second. Instead they helped out their friends in the NHL... Who quickly showed them that no good deed goes unpunished.

That is in my view the biggest takeaway from this whole affair for any future municipalities that end up in a similar situation.

This is a $100 million dollar swing in where CoG would stand. Never mind the opportunity cost over the last three plus years spent in the NHL-sanctioned purgatory that is the sale process.

The good Judge Baum has proven to be very wise in the advice he attempted to give to the former mayor those many two-weeks ago regarding being careful about which option to choose.

 

[Brodie]

what news has this morning brought?

 

[madhi19]

what news has this morning brought?

Waiting for the other shoe to drop and pretending to work while sneaking in HF for my kick fix. Hell it Friday afternoon am not even pretending!

 

[Acesolid]

what news has this morning brought?

Everyone dislikes the proposed NHL-renaissance deal. Especially Pastor and even Clark!

Also, the fact that there isn't much noise from the nhl or Renaissance is news in itself: if a relocation will happen, it ain't now! See you once the Third Round is over!

 

[King_Stannis]

The only way you will know relocation is imminent is if in the next NHL announcement they ominously say that the deal is in trouble, faltering or dead. That will be the tip off. I'd say after that it would be hard to control the leaks, as it was with Winnipeg. I still say next week will be the turning point.

 

[madhi19]

Everyone dislikes the proposed NHL-renaissance deal. Especially Pastor and even Clark!

Also, the fact that there isn't much noise from the nhl or Renaissance is news in itself: if a relocation will happen, it ain't now! See you once the Third Round is over!

At this point I think if the NHL bail out they won't care much about the third round. Hell maybe hockey fans won't notice it even more during a round! lolll

 

[gifted88]

How possible is it that the NHL has already decided to relocate and has everything "worked out" with PKP, but are waiting for Glendale to announce the arena manager/RFP to make the relo public?
In theory, PKP would have the ball rolling on everything now so a late announcement wouldn't set him them back.

Or is it impossible for that to happen without anything being leaked?

 

[Hawker14]

The only way you will know relocation is imminent is if in the next NHL announcement they ominously say that the deal is in trouble, faltering or dead. That will be the tip off. I'd say after that it would be hard to control the leaks, as it was with Winnipeg. I still say next week will be the turning point.

I expect a leak to come out this evening, quickly increasing to a flood.

imo, If there was a deal to be made with Glendale, it would have happened already.

 

[CGG]

*Hockey Central At Noon revealed that RSE does not have an out close to flip the team after five years. What the NHL will be doing is take it back and pay them $40 million. Are these fools just renting a team for a million a year? loll This is so dysfunctional I don't really know where to start.

*Take it with more than a grain of salt.

Well that's interesting. I can see why Gosbee would go for that - they would have at most $5 million at risk. I can see why the NHL would go for that - delay the inevitable by 5 years and maybe Seattle is up and running by then, they can flip the team and recover all their cash.

But how does that work for Fortress? What's in it for them? It's basically their loan that goes to fund the losses, and the AMF for 5 years won't be enough to cover the $120 million they've put into it. How do they get made whole?

 

[Donwood]

How possible is it that the NHL has already decided to relocate and has everything "worked out" with PKP, but are waiting for Glendale to announce the arena manager/RFP to make the relo public?
In theory, PKP would have the ball rolling on everything now so a late announcement wouldn't set him them back.

Or is it impossible for that to happen without anything being leaked?

I would say PKP being ready is extremely probable

 

[Mightygoose]

Well that's interesting. I can see why Gosbee would go for that - they would have at most $5 million at risk. I can see why the NHL would go for that - delay the inevitable by 5 years and maybe Seattle is up and running by then, they can flip the team and recover all their cash.

But how does that work for Fortress? What's in it for them? It's basically their loan that goes to fund the losses, and the AMF for 5 years won't be enough to cover the $120 million they've put into it. How do they get made whole?

2nd question. What's in it for Glendale? If there is one or multiple bid via the RFP that will work in the city's budget and commit to more than 5 years, this will die in it's sleep.

 

[CGG]

2nd question. What's in it for Glendale? If there is one or multiple bid via the RFP that will work in the city's budget and commit to more than 5 years, this will die in it's sleep.

The answer is nothing. This whole deal was predicated on the idea that the NHL could get Glendale to ignore the RFP and sign up for $10-$15 million a year in AMF's again. Now that seems virtually impossible, so the deal is dead.

 

[HamiltonFan]

That is in my view the biggest takeaway from this whole affair for any future municipalities that end up in a similar situation.

This is a $100 million dollar swing in where CoG would stand. Never mind the opportunity cost over the last three plus years spent in the NHL-sanctioned purgatory that is the sale process.

The good Judge Baum has proven to be very wise in the advice he attempted to give to the former mayor those many two-weeks ago regarding being careful about which option to choose.

Yes, one MIGHT say that the idiocy of the COG cost Hamilton an nhl franchise. If COG sided with Balsillie instead of the nhl, judge Baum MAY have ruled in favor of Balsillie. It's too bad, we'll never know. Maybe the good judge can pull off a Deepthroat and tell all after he's retired.

 

[Mightygoose]

Hoping there is a plethora of bids when the envelopes are opened tonight.

Even just enough bids to make RSE take a few steps back, then a few more, then a few until they reach the end of the cliff

 

[madhi19]

Yes, one MIGHT say that the idiocy of the COG cost Hamilton an nhl franchise. If COG sided with Balsillie instead of the nhl, judge Baum MAY have ruled in favor of Balsillie. It's too bad, we'll never know. Maybe the good judge can pull off a Deepthroat and tell all after he's retired.

It actually cost Balsillie a few billion he might have divested out of RIM at the right time if that sale get done.

 

[Heavy Dee]

Well that's interesting. I can see why Gosbee would go for that - they would have at most $5 million at risk. I can see why the NHL would go for that - delay the inevitable by 5 years and maybe Seattle is up and running by then, they can flip the team and recover all their cash.

But how does that work for Fortress? What's in it for them? It's basically their loan that goes to fund the losses, and the AMF for 5 years won't be enough to cover the $120 million they've put into it. How do they get made whole?

Fortress converts the loan to equity at their option.

 

[cbcwpg]

Originally Posted by madhi19
*Hockey Central At Noon revealed that RSE does not have an out close to flip the team after five years. What the NHL will be doing is take it back and pay them $40 million. Are these fools just renting a team for a million a year? loll This is so dysfunctional I don't really know where to start.

*Take it with more than a grain of salt.

I read this statement like 10 times to be clear, and its not. Need more substance in the statement.

What the NHL will be doing is take it back and pay them $40 million.

Does this mean after 5 years the NHL is taking it back no matter what, or just if RSE wants out after 5 years??

 

[madhi19]

Originally Posted by madhi19
*Hockey Central At Noon revealed that RSE does not have an out close to flip the team after five years. What the NHL will be doing is take it back and pay them $40 million. Are these fools just renting a team for a million a year? loll This is so dysfunctional I don't really know where to start.

*Take it with more than a grain of salt.

I read this statement like 10 times to be clear, and its not. Need more substance in the statement.

What the NHL will be doing is take it back and pay them $40 million.

Does this mean after 5 years the NHL is taking it back no matter what, or just if RSE wants out after 5 years??

RSE get the option of giving the team back for $40 million after five years.

 

[King_Stannis]

Yes, one MIGHT say that the idiocy of the COG cost Hamilton an nhl franchise. If COG sided with Balsillie instead of the nhl, judge Baum MAY have ruled in favor of Balsillie. It's too bad, we'll never know. Maybe the good judge can pull off a Deepthroat and tell all after he's retired.

You should watch the video link posted in this thread last night. It features Baum and a few lawyers involved. Baum pretty much left no doubt how he feld when, at the time, he asked CoG if they were really sure they didn't want to consider Balsillie's offer. The way he phrased it in the Q&A video made it pretty clear that he viewed it as an extremely generous offer.

 

[CGG]

Fortress converts the loan to equity at their option.

Yes, but under the assumption that Gosbee walks after 5 years and the NHL gives them back $40 million, 20% of the equity is worth about $8 million. A fairly terrible return on the $120 million thrown into the pot by Fortress.

 

[madhi19]

Yes, but under the assumption that Gosbee walks after 5 years and the NHL gives them back $40 million, 20% of the equity is worth about $8 million. A fairly terrible return on the $120 million thrown into the pot by Fortress.

Fortress got the Option to convert some of the debt to 20% equity not all the debt. They would still have to be paid back but if the team value does go up they can wipe out some of the debt to exercise their option.

 

[HamiltonFan]

You should watch the video link posted in this thread last night. It features Baum and a few lawyers involved. Baum pretty much left no doubt how he feld when, at the time, he asked CoG if they were really sure they didn't want to consider Balsillie's offer. The way he phrased it in the Q&A video made it pretty clear that he viewed it as an extremely generous offer.

I can't watch it, it'll just depress me. You've told me all I need to know.