Originally posted by ESPN.com/APAn investment firm and a sports advisory company reportedly made a joint proposal to buy all 30 NHL teams for as much as $3.5 billion.
Bain Capital Partners LLC and Game Plan International, both based in Boston, made the offer in a 30-minute presentation to NHL owners on Tuesday in New York, sources told the Toronto Star. The companies were invited to make their pitch by NHL commissioner Gary Bettman.
Bain managing partner Steven Pagliuca, co-owner of the NBA's Boston Celtics, and Game Plan, which recently acted as an adviser on the sale of the Ottawa Senators, are betting that many NHL owners would welcome the chance to get out of the hockey business.
The NHL, which because of its ongoing player lockout recently became the first major North American pro sports league to cancel an entire season, has said its teams have lost a collective $500 million over the past two seasons.
Before the work stoppage, the total value of the 30 NHL franchises was an estimated $4.9 billion, according to Forbes Magazine. The Detroit Red Wings topped the list at $266 million, with the Edmonton Oilers last at $86 million.
It's unclear if team owners, especially those in large markets such as Toronto, Boston and New York, would accept the offer. Maple Leafs officials declined comment, as did a Game Plan spokesman.
NHL executive vice president Bill Daly was cautious in describing the level of interest the proposal received from the governors.
"I'm not going to characterize it," Daly told the Globe and Mail. "I would imagine different clubs had different feelings. The board listened to a presentation and that's about it."
Daly said the league was compelled to listen based on the significance of the offer.
"When someone's offering over $3 billion, we felt we had an obligation to the board to have them, at least, hear it from the proposed purchaser," Daly added.
The purchase would not be dependent on the NHL reaching agreement with the players on a collective bargaining deal, and a sale would not affect the status of the NHL Players' Association as the bargaining agent for players under U.S. and Canadian labor laws.
According to Bain and Game Plan, the sale would bolster the league's revenue because all of the teams would work together to generate more local television, sponsorship and revenue instead of competing against one another. The consortium told the NHL owners it had arranged for a large Canadian-based financier to join its efforts.
That works out to roughly $117 million per team, which more than most of them are probably worth.
I don't see what the value is to the investment company, though.
If run properly, the NHL could be a very lucrative league, even in the United States. Look at how NASCAR has exploded under the right management and direction.
I would like anything that would take the league out of Gary Bettman's hands.
"When did they pass a law that says the people who make my sandwich have to be wearing gloves? I'm not comfortable with this. I don't want glove residue all over my food; it's not sanitary. Who knows where these gloves have been?" - George Carlin
I wonder if that would make the NHL run under an Arena football or MLS type situation, in which the players are actually owned by the league as a whole, and the league basically assigns them to the teams. I believe that's how the AFL and MLS are run.
NOTE: The above post makes no sense. We apologize for the inconvenience.
Originally posted by Mr. BoffoI wonder if that would make the NHL run under an Arena football or MLS type situation, in which the players are actually owned by the league as a whole, and the league basically assigns them to the teams. I believe that's how the AFL and MLS are run.
I read an article on either tsn.ca or sportsnet.ca that said that's how it would be. The owners pretty much said that they listened to the idea to be polite, but they had no interest. Teams like the Leafs and Red Wings would definately want much more for their teams (as they actually MAKE money as far as I know) but you gotta believe there were more than a couple owners who even for a second thought "GREAT IDEA!".
This system would mean that the players play one team against another for a contract, it would only be "Do I play in the NHL or not" as to whether or not they accepted the contract offered to them by the league. Needless to say, the players didn't even want to talk about that being an option. It would be like watching a 7 year old find out that there's no Santa Claus. "No... no... it can't be!!! This can't be happening!!! NOOOoooooooo......"
Originally posted by The GoonI think Vince McMahon's behind it all, and his plan is to create the "XHL".
You've been reading the Sports Guy, haven't you ?
This offer is completely unrealistic. Whereas the owners of the Penguins or the Predators might jump on $117m, you know that owners of the Red Wings or Rangers would reject it out of hand. It's nothing more than a backdoor negotiating ploy by Bettman to send a signal to the players to get back to the table.
The rumour on the Sports Radio up here this morning is that the group making the offer is looking for a Canadian investor as well.
The hot rumour is that the Ontario Teachers Pension fund, which currently owns 58% of the Toronto Maple Leafs is the target and that they are seriously investigating the possiblity of joining the consortium....
Where the wild are strong, and the strong are the darkest ones, you're the Darkest One.
Originally posted by dunkndollazYou've been reading the Sports Guy, haven't you ?
Actually, I don't know who that is. The whole "single owner of league", though, reminds me of the XFL. And before he launched the XFL, I believe Vince did try to buy the CFL.
It's certainly an interesting idea in the realm of a startup league, but even with a sweetened offer, I can't imagine anyone but the most jittery owners even seriously considering the idea.
I like the idea of the Ontario retired teachers getting involved, however. As my mom is part of that organization, maybe she can run the operations of a team with my assistance. Ask for the Islanders, Mom!
As a long time Islander fan, I am just shaking my head. I thought the hiring of Smith, Nolan, LaFontine and Trottier to top positions was a great move by Wang and I even bought into the whole everyone reports to him.