3.5 billion $ to buy all 30 NHL teams...

[Guest Mike Dude]

http://sports.espn.go.com/nhl/news/story?id=2003701

Firms made pitch to owners Tuesday

Associated Press

TORONTO -- An 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.

“ 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. ”

— Bill Daly, NHL executive vice president

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.

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.

[Lowerdeck]

If this really did happen, it'd make things much better for the NHL. Or at least I'd hope they'd cut a few teams anyway.

[Ananas]

Are you kidding me? It would KILL the NHL. It would ruin professional hockey because one owner owning a hockey league would eliminate the competitiveness of the sport. No need for GM's if one owner is controlling who plays for what team. What incentive will players have to put in career seasons if there won't be competition between owners to sign them at the end of a contract? I thought this had been already rejected, and hopefully the owners come to their senses soon.

[sahyder1]

It works for the MLS but it won't for hockey. There's no way that the ownerships of the big teams would ever agree to it. I mean, you could have orders for every team to spend a certain amount but there would always be talk of collusion and fixes going down.

[SeanDMan]

It works for the MLS because Americans do not care.

It would work for the NHL for the same reason, if it weren't for Canada.

[ACCBiggz]

The firms are going to raise the offer... didn't say by how much just said, "prepared to substantially increase their initial offer of $3.5 billion to purchase the 30 NHL teams."

[JStarr]

There's a big question forming in my head, though...would this firm keep a hold on the NHL as just another piece of its profit and loss pie, or possibly sell off a few teams as more adventurous and solvent owners were found for each? If this is a temp fix to prop up the league in a time of difficulty and keep some franchises from folding, then more power to them.

What will happen if, say, the Leafs, Rangers, and Stars are the lone holdouts? Will they be the only teams that stand alone, or will the whole deal fall apart at that point?

Honestly, comparisons to MLS are right on, as both of these sports are really struggling to find American acceptance, and in MLS's case, North American acceptance. Hockey needs something to put it back to reality, and if these firms are willing to reach out to the disaffected fans who've been priced out the same way as the average NBA or MLB fan has, then this could be a great thing for the league.

[apsham]

It works for the MLS because Americans do not care.

It would work for the NHL for the same reason, if it weren't for Canada.

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DAMN OUR COMMON SENSE!

Edited March 5, 2005 by Apple Shampoo

[Lowerdeck]

I would be guessing that franchises like the Rangers, Stars, and Leafs would garner larger chunks of the 3.5B than say Anaheim ... which I could probably buy for $50.

[oldskool]

Perhaps they'll just buy all the teams and then sell them off, one by one, to guys willing to get hockey going again.

....and maybe the Leafs will sweep the Flyers in the first round averaging 10 goals a game and Belfour will have four shutouts; anything's possible at this point.

[sahyder1]

Perhaps they'll just buy all the teams and then sell them off, one by one, to guys willing to get hockey going again.

....and maybe the Leafs will sweep the Flyers in the first round averaging 10 goals a game and Belfour will have four shutouts; anything's possible at this point.

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[SeanDMan]

No, that's actually the plan. They're going to buy the league and institute a new CBA, and then sell the teams when their value doubles (with the league having a new CBA and profitable teams). Chances are they'll just stick around for one year if that.

[sahyder1]

No, that's actually the plan. They're going to buy the league and institute a new CBA, and then sell the teams when their value doubles (with the league having a new CBA and profitable teams). Chances are they'll just stick around for one year if that.

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[DMN in the House]

If they bought the teams in finanicial trouble, and left those that could stay solvent alone (Los Angeles comes to mind, as a team which would keep its current ownership), then it could work.

If the NHL wants to stay a legitimate sport, and not become the joke that is MLS or Arena Football, it won't do this however. They do need to contract though.