Martin Gelinas, whose last stint in the NHL was with the Nashville Predators, has been named the Director of Player Development for the Preds. Gelinas, the former 7th round pick of the L.A. Kings in the 1988 entry draft, won a Stanley Cup with the 1989 Edmonton Oilers. He also played for the Vancouver Canucks, the Quebec Nordiques, the Carolina Hurricanes, the Calgary Flames, and the Florida Panthers, in addition to the Predators. A torn ACL ended Gelinas' season with the Predators in 2007, his last in the NHL.
As the Director of Player Development, Gelinas will be responsible for following the prospects drafted by the Predators and will assist them in their development to the NHL. He will work with prospects in North America and Europe.
This is a great move by the Predators and David Poile. Marty was a great locker room presence, solid on the ice, and is a class act. Having someone of this caliber that can share his on and off ice expertise and experience bodes well for the prospects in the Predators system.
Tuesday, June 16, 2009
Monday, June 15, 2009
Court Rules Against Balsillie
Judge Redfield Baum issued a ruling tonight from his Phoenix bankruptcy court that denied the request of the Balsillie camp to allow relocation of the Phoenix Coyotes to Hamilton, ON by the requested June 29th deadline that was imposed by Balsillie's attorneys. Judge Baum ruled that the June 29th date was a deal breaker because it did not allow the court sufficient time to decide the anti-trust claim raised by Balsillie's attorneys. In reading the ruling, the Judge also came back to a point he raised earlier in the hearings with Thomas Salerno, an attorney for Balsillie that questioned the desire of the Balsillie camp to "excise" the assign and assumption clause of the bankruptcy code. Specifically, he referenced existing contracts that Balsillie wanted to omit from consideration in his attempt to purchase and relocate the Coyotes. His ruling stated that as long as the contracts were valid and enforceable, which he believed the were, that said contracts should be honored. He specifically referenced the contract with the City of Glendale and with Aramark, the concessions vendor for the Coyotes. Judge Baum stated in his ruling that he did not believe that Balsillie could legally excise, or remove from consideration those valid contracts. He also noted that Balsillie had not made formal application to the NHL for the purchase and subsequent relocation of the Coyotes. This fact also weighed in his consideration. He referenced as well the rights of sports leagues to control their franchises and the rights of leagues to control relocations and receive compensation for relocating to certain markets. This case, at the outset, did not take those rights into consideration, an issue that was raised by Judge Baum in the hearings.
The ruling against Balsillie hangs on the tight deadline of June 29th, which the court has, rightfully so, said does not give it adequate time to sort out the complex anti-trust issues that have been raised. The ruling does indicate that the anti-trust provisions are not the sole issue that must be resolved, and their is serious consideration that must be given to existing contracts and the rights of the League to control franchises and their location, or relocation. I expect that we have not heard the last of this case or of Jim Balsillie and his attempts to procure an NHL franchise.
The ruling against Balsillie hangs on the tight deadline of June 29th, which the court has, rightfully so, said does not give it adequate time to sort out the complex anti-trust issues that have been raised. The ruling does indicate that the anti-trust provisions are not the sole issue that must be resolved, and their is serious consideration that must be given to existing contracts and the rights of the League to control franchises and their location, or relocation. I expect that we have not heard the last of this case or of Jim Balsillie and his attempts to procure an NHL franchise.
Sunday, June 14, 2009
A Look at Hamilton
The fate of the Phoenix Coyotes continues to play out in Judge Redfield Baum's bankruptcy courtroom, and the focus of the many of the arguments has been the viability of Phoenix as a hockey market. Potential acquirer Jim Balsillie has proposed to purchase the club and move it to Hamilton, assumed as fact by those that want to relocate the club that the city and surrounding areas will be a solid and profitable hockey market. Perhaps so, but it is interesting to look at Hamilton the city as a potential hockey town from an economic, demographic, and quality of life standpoint to determine the validity of that argument.
Hamilton is geographically located on the western end of the Niagara Peninsula in southern Ontario, and is almost equidistant between Toronto and Buffalo (approximately 70 miles from each city). Hamilton has a population of 504,559; its metropolitan area has 692,911 residents. The area from Oshawa, ON to Niagara Falls is known as the "Golden Horseshoe", and has 8.1MM residents in that region. Hamilton sits at the geographic center of the Golden Horseshoe. The major industries in this area have traditionally been steel and manufacturing, and the Toronto-Hamilton area is the most industrialized area in Canada. 60% of the steel produced in Canada is produced in Hamilton, primarily by Stelco (owned by U.S. Steel) and Dofasco (an subsidiary of Arcel Mittal, the largest steel producer in the world). With the global recession, the Hamilton area has suffered economically, with 20% of the local populace below the poverty line as established by the Canadian government. According to the latest numbers I could obtain, which were for year end 2007, the unemployment rate in Hamilton was 6%, although that number is continuing to grow according to a news story form the National Post. The local government has made a concerted effort to broaden the economic base of the city into health care and entertainment. The Hamilton Health Sciences Corporation now employs 10,000 and the Hamilton Film and Television Office has been successful in drawing film and television crews to the area for filming and production. The average income in Hamilton is $57,664, although the suburban community of Oakville has an average income of $101,675. This compares to an average income in the entire province of Ontario of $66,836. 61% of Hamilton's labor force commutes to a job outside of the City of Hamilton.
Interestingly, the fastest growing demographic group in Hamilton is the cohort aged 75 and over, which grew by 21% according to the last census. The group that was in greatest decline was the 25-34 age group. The population of the entire province of Ontario grew 9.9%, while the population in Hamilton grew 4.6% (data as of 2001 census numbers). The city projects a population of 532,380 in 2011, a growth rate of 5%. There are 135,985 family households and 55,525 non-family households in Hamilton.
Hamilton is home to a number of colleges and universities, prominent among them McMaster University with an enrollment of 22,000. Mohawk College, a college of applied arts and technology, has 10,000 full time students; 40,000 part time students, and 3,000 apprentices. Also, Hamilton is home to the Royal Botanical Gardens; the Canadian Warplane Heritage Museum and the Canadian Football Hall of Fame. The other professional teams in Hamilton are the Tiger-Cats of the CFL and the Bulldogs of the AHL.
As compared to Hamilton, Nashville has 619,626 in Davidson County and 1,521,437 in the metropolitan area. The largest population cohort in Nashville is the 35-54 age group, comprising 29.6% of the populace. Population growth in the metro Nashville area has averaged a growth rate of 25% annually. The median income in Nashville was $49,317 for a family, and 13% of the population was below the poverty line. Health care is by far and away the biggest engine of the economy in Nashville, with entertainment, state government, and printing and publishing predominant. Nashville and the metro area is home to 21 colleges and universities.
One of the arguments for a franchise in Hamilton is that the average ticket price will be lower than the league leading average price of a ticket to see the Maple Leafs, which is $76.15. Even at the League average of $49.66 per ticket, it remains to be seen how attractive a ticket will be to the average Hamiltonian. The Balsillie camp has not been willing to comment on ticket prices. Given the economic and demographic make up of Hamilton, it becomes apparent that the team will have to draw extensively from surrounding areas like Kitchner and Waterloo to support the team, much like many teams, such as the Predators, draw from surrounding communities in their Metro area. This is where the attraction of hockey to most Canadians works in the favor of a team in Hamilton.
Unknown is the appetite for the City of Hamilton to fund improvements to the existing Copps Coliseum or construct a new facility. Balsillie has said that he is willing to fund an immediate $20MM to bring Copps up to minimum NHL standards. He has asked the city to fund an additional $120MM through the issuance of bonds for additional improvements. The mayor of Hamilton has expressed his support for this, but it still has to go through the legislative process for final approval.
Whether the Coyotes remain in Phoenix or relocate to Hamilton is in the hands of the bankruptcy court. The success of an NHL team in Hamilton depends upon the ability to attract fans not only from Hamilton, but especially the surrounding areas around the city. A hockey mad market bolsters those efforts.
*Sources: City of Hamilton statistical abstract
National Post
City of Nashville statistical abstract
Hamilton is geographically located on the western end of the Niagara Peninsula in southern Ontario, and is almost equidistant between Toronto and Buffalo (approximately 70 miles from each city). Hamilton has a population of 504,559; its metropolitan area has 692,911 residents. The area from Oshawa, ON to Niagara Falls is known as the "Golden Horseshoe", and has 8.1MM residents in that region. Hamilton sits at the geographic center of the Golden Horseshoe. The major industries in this area have traditionally been steel and manufacturing, and the Toronto-Hamilton area is the most industrialized area in Canada. 60% of the steel produced in Canada is produced in Hamilton, primarily by Stelco (owned by U.S. Steel) and Dofasco (an subsidiary of Arcel Mittal, the largest steel producer in the world). With the global recession, the Hamilton area has suffered economically, with 20% of the local populace below the poverty line as established by the Canadian government. According to the latest numbers I could obtain, which were for year end 2007, the unemployment rate in Hamilton was 6%, although that number is continuing to grow according to a news story form the National Post. The local government has made a concerted effort to broaden the economic base of the city into health care and entertainment. The Hamilton Health Sciences Corporation now employs 10,000 and the Hamilton Film and Television Office has been successful in drawing film and television crews to the area for filming and production. The average income in Hamilton is $57,664, although the suburban community of Oakville has an average income of $101,675. This compares to an average income in the entire province of Ontario of $66,836. 61% of Hamilton's labor force commutes to a job outside of the City of Hamilton.
Interestingly, the fastest growing demographic group in Hamilton is the cohort aged 75 and over, which grew by 21% according to the last census. The group that was in greatest decline was the 25-34 age group. The population of the entire province of Ontario grew 9.9%, while the population in Hamilton grew 4.6% (data as of 2001 census numbers). The city projects a population of 532,380 in 2011, a growth rate of 5%. There are 135,985 family households and 55,525 non-family households in Hamilton.
Hamilton is home to a number of colleges and universities, prominent among them McMaster University with an enrollment of 22,000. Mohawk College, a college of applied arts and technology, has 10,000 full time students; 40,000 part time students, and 3,000 apprentices. Also, Hamilton is home to the Royal Botanical Gardens; the Canadian Warplane Heritage Museum and the Canadian Football Hall of Fame. The other professional teams in Hamilton are the Tiger-Cats of the CFL and the Bulldogs of the AHL.
As compared to Hamilton, Nashville has 619,626 in Davidson County and 1,521,437 in the metropolitan area. The largest population cohort in Nashville is the 35-54 age group, comprising 29.6% of the populace. Population growth in the metro Nashville area has averaged a growth rate of 25% annually. The median income in Nashville was $49,317 for a family, and 13% of the population was below the poverty line. Health care is by far and away the biggest engine of the economy in Nashville, with entertainment, state government, and printing and publishing predominant. Nashville and the metro area is home to 21 colleges and universities.
One of the arguments for a franchise in Hamilton is that the average ticket price will be lower than the league leading average price of a ticket to see the Maple Leafs, which is $76.15. Even at the League average of $49.66 per ticket, it remains to be seen how attractive a ticket will be to the average Hamiltonian. The Balsillie camp has not been willing to comment on ticket prices. Given the economic and demographic make up of Hamilton, it becomes apparent that the team will have to draw extensively from surrounding areas like Kitchner and Waterloo to support the team, much like many teams, such as the Predators, draw from surrounding communities in their Metro area. This is where the attraction of hockey to most Canadians works in the favor of a team in Hamilton.
Unknown is the appetite for the City of Hamilton to fund improvements to the existing Copps Coliseum or construct a new facility. Balsillie has said that he is willing to fund an immediate $20MM to bring Copps up to minimum NHL standards. He has asked the city to fund an additional $120MM through the issuance of bonds for additional improvements. The mayor of Hamilton has expressed his support for this, but it still has to go through the legislative process for final approval.
Whether the Coyotes remain in Phoenix or relocate to Hamilton is in the hands of the bankruptcy court. The success of an NHL team in Hamilton depends upon the ability to attract fans not only from Hamilton, but especially the surrounding areas around the city. A hockey mad market bolsters those efforts.
*Sources: City of Hamilton statistical abstract
National Post
City of Nashville statistical abstract
Saturday, June 13, 2009
The Improbable Hap-Pens
Down 2-0 in the Stanley Cup Finals, the Pittsburgh Penguins certainly looked as if they would be watching the Detroit Red Wings hoist the Cup one more time as Stanley Cup champions. This series turned as the Pens held serve on their home ice and proceeded to win 4 of the next five games against the Wings and became the first team since the 1971 Montreal Canadiens to win the Cup on the road. There were many unsung heroes for the Pens, no more than Max Talbot, who scored the two goals in game 7 to clinch the Cup. Kudos have to be given to Marc-Andre Fleury, who exorcised his demons at the Joe and was solid in net in game 7 with 23 saves, none bigger than the save on Nic Lidstrom with 5 seconds remaining in the game. The Pens got solid play from their supporting cast of players- Kris Letang, Brooks Orpik, Bill Geurin, and others who stepped up their game in the finals. Sidney Crosby was not the scoring machine many expected, but was incredible in the face off circle and was solid in the defensive zone. Evgeni Malkin won the Conn Smythe trophy as the playoff MVP, and his play was certainly elevated as compared to last year's finals. And what can be said about the coaching job of Dan Bylsma? He shepherded this squad through the playoffs by keeping them focused and confident. He knew which buttons to push with this squad, both in their sprint through the last quarter of the regular season and throughout the playoffs. It was apparent the Pens responded to his coaching and translated it to exceptional play on the ice. It was good to see assistant coach Tom Fitzgerald, a former Preds player, rewarded for his efforts behind the bench.
The SCF was an amazing exhibition of hockey, and hopefully will draw more casual fans in to the game. Congratulations to both teams for the effort they put on the ice.
The View picked the Pens in 6. They won it in 7. Even blind hogs do find an acorn every now and then.
The SCF was an amazing exhibition of hockey, and hopefully will draw more casual fans in to the game. Congratulations to both teams for the effort they put on the ice.
The View picked the Pens in 6. They won it in 7. Even blind hogs do find an acorn every now and then.
Wednesday, June 10, 2009
Coyotes Courtroom Confrontation
The continuing drama of the Phoenix Coyotes continues to unfold in Judge Redfield Baum's bankruptcy court, with the NHL, Jerry Moyes, Jim Balsillie, and the City of Glendale filing more than 600 pages in legal briefs with the court yesterday. One of the best lines of the hearings so far was from Judge Baum, who, upon seeing the volume of filings, said "If this is an endurance contest, I'll concede." Balsillie's camp has cited the fact that a protracted consideration of the potential relocation by the NHL would, in essence, veto Balsillie's offer because it would make a relocation scenario unworkable. To bolster the argument about making an expeditious decision on relocation, Balsillie's attorney's have cited the relocation of Major League baseball's Seattle Pilots after the one and only season in Seattle in 1968; and the relocation of the Quebec Nordiques after the 1995 season to Denver. The NHL has countered this argument by stating in their filings that the League controls who owns the clubs and where they are located. The League also argued that they controlled the rights to the southern Ontario market and those rights cannot be unilaterally claimed by any party. Current owner Jerry Moyes has filed a petition that he is an unsecured creditor and should be given consideration as such. The League contends that the additional monies that Moyes has invested in to the club amount to equity and are not debts owed to him as a creditor. This distinction is critical, because Judge Baum will render a decision that will provide the greatest benefit to creditors. Obviously, Moyes is operating with his economic self interest in mind by employing this tactic, and if successful, would reap the greatest return on the dollars he has invested into the Coyotes. Finally, the City of Glendale has filed a motion to protect their interest in the Jobing.com arena, which was constructed by the city at a cost of $183MM and financed with $155MM in bonds. The city estimates that it would lose $565MM in taxes and fee revenue, and has claimed that they should be paid for the remaining value of the lease should the Coyotes relocate. That value is claimed to be $500MM.
There is obviously a tremendous amount of legal maneuvering that is occurring in this process, and the outcome remains undecided. There are several key issues, however, that merit our consideration. It was reported that Judge Baum has stated that the NHL is within its rights to demand a relocation fee should the franchise move to southern Ontario. The numbers that have been publicly discussed are in the $100-150MM range. If so, it is speculated that $50MM would each go to the Maple Leafs and the Sabres for a franchise relocating within the 80 mile radius of their city, and the remaining $50MM would be allocated among the remaining 28 teams. This will change the financial dynamic of Balsillie's bid, and initially, his attorney, Richard Rodier, said that the Balsillie camp has the right to walk away from their bid for the Coyotes if there was the imposition of a relocation fee. Balsillie has since softened his stance on that issue, but there is no denying a fee of that size will force reconsideration of the bid. The last time a franchise was awarded a fee because of the violation of their territorial sovereignty was when the Anaheim Ducks paid the L.A. Kings a fee, which was $25MM to place the franchise in the Anaheim market. In my May 21 post, I proposed that the offer to purchase and relocate the Coyotes by Balsillie was a way to get a franchise in the market he wanted (southern Ontario) "on the cheap" by avoiding the expansion fees that the League would charge. The relocation fee that the League could charge negates some of the financial advantage that Balsillie would gain if this tactic is successful.
While Judge Baum has been unsparing in his criticism of all the attorneys and their arguments when it has been warranted, it was his questioning of Moyes lead attorney, Thomas Salerno, that caught my eye. In an exchange yesterday, the Judge asked Salerno to explain how the proposed buyer, Balsillie, could request the team to be relocated to Hamilton when one of the articles of the bankruptcy code clearly states that a buyer "assign and assume" all contracts, and that the Coyotes have contracts to play in Glendale and honor the bylaws of the NHL. That question, as you can imagine, went unanswered.
The Balsillie camp has cited the relocation of the Pilots from Seattle to Milwaukee as a precedent for allowing the move from Phoenix to Hamilton. Balsillie's lead attorney, the aforementioned Richard Rodier, went so far as to call this case as a "lawyer's wet dream" since it so closely parallels the Coyotes situation, and the move was consummated one week before the 1969 baseball season. According to Rodier, this case negates the NHL's claim to need ample time to consider the relocation issue. The significant difference in these two cases is that the Pilots had filed bankruptcy and neither the City of Seattle nor a local buyer would agree to fund the operation of the club AND neither would Major League Baseball. In the case of the Coyotes, the NHL has committed to fund the operations of the team for the coming season in order to insure an orderly sale and transition. In my non-lawyerly mind, the comparisons become moot for that reason alone.
Balsillie attorney's have also cited the relocation of the Nordiques. When Marcel Aubut, owner of the Nordiques, found himself in financial difficulties in 1995, he went to the provincial government and asked for financial assistance. That request was refused, and he ultimately sold the club to a group of investors in Denver. Again, the substantive difference in my mind is that this was a negotiated sale between Aubut and the Denver buyers. Balsillie's attorneys cite these situations to negate the League's claim that they would need time to review a relocation request. However, I think these two salient points in each of these specific situations invalidate the argument from the Balsillie camp.
The decision's coming out of Judge Baum's court have implications not only for the NHL and the Coyotes, but for all of professional sports. The next few weeks will be interesting, not only for hockey fans in Phoenix, but for sports fans everywhere.
There is obviously a tremendous amount of legal maneuvering that is occurring in this process, and the outcome remains undecided. There are several key issues, however, that merit our consideration. It was reported that Judge Baum has stated that the NHL is within its rights to demand a relocation fee should the franchise move to southern Ontario. The numbers that have been publicly discussed are in the $100-150MM range. If so, it is speculated that $50MM would each go to the Maple Leafs and the Sabres for a franchise relocating within the 80 mile radius of their city, and the remaining $50MM would be allocated among the remaining 28 teams. This will change the financial dynamic of Balsillie's bid, and initially, his attorney, Richard Rodier, said that the Balsillie camp has the right to walk away from their bid for the Coyotes if there was the imposition of a relocation fee. Balsillie has since softened his stance on that issue, but there is no denying a fee of that size will force reconsideration of the bid. The last time a franchise was awarded a fee because of the violation of their territorial sovereignty was when the Anaheim Ducks paid the L.A. Kings a fee, which was $25MM to place the franchise in the Anaheim market. In my May 21 post, I proposed that the offer to purchase and relocate the Coyotes by Balsillie was a way to get a franchise in the market he wanted (southern Ontario) "on the cheap" by avoiding the expansion fees that the League would charge. The relocation fee that the League could charge negates some of the financial advantage that Balsillie would gain if this tactic is successful.
While Judge Baum has been unsparing in his criticism of all the attorneys and their arguments when it has been warranted, it was his questioning of Moyes lead attorney, Thomas Salerno, that caught my eye. In an exchange yesterday, the Judge asked Salerno to explain how the proposed buyer, Balsillie, could request the team to be relocated to Hamilton when one of the articles of the bankruptcy code clearly states that a buyer "assign and assume" all contracts, and that the Coyotes have contracts to play in Glendale and honor the bylaws of the NHL. That question, as you can imagine, went unanswered.
The Balsillie camp has cited the relocation of the Pilots from Seattle to Milwaukee as a precedent for allowing the move from Phoenix to Hamilton. Balsillie's lead attorney, the aforementioned Richard Rodier, went so far as to call this case as a "lawyer's wet dream" since it so closely parallels the Coyotes situation, and the move was consummated one week before the 1969 baseball season. According to Rodier, this case negates the NHL's claim to need ample time to consider the relocation issue. The significant difference in these two cases is that the Pilots had filed bankruptcy and neither the City of Seattle nor a local buyer would agree to fund the operation of the club AND neither would Major League Baseball. In the case of the Coyotes, the NHL has committed to fund the operations of the team for the coming season in order to insure an orderly sale and transition. In my non-lawyerly mind, the comparisons become moot for that reason alone.
Balsillie attorney's have also cited the relocation of the Nordiques. When Marcel Aubut, owner of the Nordiques, found himself in financial difficulties in 1995, he went to the provincial government and asked for financial assistance. That request was refused, and he ultimately sold the club to a group of investors in Denver. Again, the substantive difference in my mind is that this was a negotiated sale between Aubut and the Denver buyers. Balsillie's attorneys cite these situations to negate the League's claim that they would need time to review a relocation request. However, I think these two salient points in each of these specific situations invalidate the argument from the Balsillie camp.
The decision's coming out of Judge Baum's court have implications not only for the NHL and the Coyotes, but for all of professional sports. The next few weeks will be interesting, not only for hockey fans in Phoenix, but for sports fans everywhere.
Thursday, June 4, 2009
A Non-Mainstream Hockey Award
The annual NHL Awards Show and presentation will be held in Las Vegas on June 18th at the Palms Resort, and Predators and hockey blogger Buddy Oakes of Preds On The Glass will be attending and providing coverage of this glamorous event. Awards such as the Lady Byng (Sportsmanship), Hart (MVP), Calder (Rookie of the Year) and others will be handed out. The Predators own Steve Sullivan is a finalist for the Masterson Trophy, awarded to the player that best exemplifies the qualities of perseverance, sportsmanship, and dedication to hockey. While these awards garner the attention of fans and the press, an award was handed out today that will not make the mainstream of the NHL's annual awards, but one that is vivid in the minds of Predator fans. Today, Hockeyfights.com handed out their awards, and the Joey Kocur KO or TKO of the Year award was given to our own Wade Belak for his March 10th punch out of Donald Brashear of the Washington Capitals. Brashear is renowned for his toughness and fighting skills, and when the two enforcers squared off, I thought Belak was at a disadvantage, but a monstrous left from Belak felled Brashear with one punch.
We will not get into a discussion of fighting and its merits, or lack thereof, right now. Suffice it to say, Wade Belak, who was gaining a reputation as an efficient enforcer, made the hockey world sit up and take notice of his skills. Although we will not hear this award mentioned on June 18th, congratulations to Wade Belak for a job well done.
We will not get into a discussion of fighting and its merits, or lack thereof, right now. Suffice it to say, Wade Belak, who was gaining a reputation as an efficient enforcer, made the hockey world sit up and take notice of his skills. Although we will not hear this award mentioned on June 18th, congratulations to Wade Belak for a job well done.
Tuesday, June 2, 2009
A New Ownership Model
The Florida Panthers have been sold to a publicly traded company, according Ben Klayman reporting for Reuters News. Sports Properties Acquisition Corporation (SPAC) has agreed to buy the Florida Panthers hockey club, its home ice BankAtlantic Center, an arena management company that operates the BankAtlantic Center, and 139 acres of land surrounding the center for $240MM. As reported in my April 27th post A Potential New Owner in the NHL, the money making potential for SPAC is the 139 acres of undeveloped land, which the company plans to develop into a mixed use development called The City of OZ (no pretentiousness there!). Originally, the price was for the purchase was $230MM, but did not include the arena, which is owned by Broward County. The new deal includes the arena. This announcement comes on the heels of the announcement of Jacques Martin leaving his position of GM of the Panthers to move behind the bench of the Montreal Canadiens, and it is unknown if his departure is related to this purchase. SPAC has a high profile management group, including Tony Tavares, former President of the Washington Nationals and CEO of Disney Sports when they launched the Anaheim Ducks; former New York governor Mario Cuomo; Hall of Fame baseball player Henry Aaron; and Richard Mack, a senior partner at Apollo Real Estate Advisors. SPAC was rumored to be interested in acquiring other hockey teams, and their name had recently surfaced as being interested in the Columbus Blue Jackets.
The only other professional sports team with this type of ownership arrangement is the Green Bay Packers, although there are other outside entities that have ownership interests in professional sports team. In hockey, the MLSE, the operating group for the Maple Leafs, is 58% owned by the Ottawa Teachers Pension Plan. Most hockey clubs are owned by individuals or investment groups, and the purchase by SPAC represents the first ownership entity in the NHL that is a publicly traded company.
The issue that I raised in my post on April 27th is the central question about this type of ownership model, and that is who will be calling the shots for the operation of the Panthers? With this type of ownership model, the GM is going to answer to the board of a publicly traded company. Will the product that is put on the ice be affected by the best judgement of the GM or the board of SPAC, and what type of influence will the board of SPAC have on day to day management and operations of the club? Ostensibly, the main return on investment for SPAC will come from the development of the City of Oz, but the real estate market in South Florida has cratered. Suppose development doesn't occur for 3 to 5 years. The return that investors will get from their investment will be from the hockey club and other events at the arena. The Panthers have struggled on the ice and at the gate, failing to make the playoffs since 2000 and ranking 24th in attendance as of the end of the 2008 season, and the arena has not made money from non-hockey related events. What happens if the hockey club continues to struggle and loses money? How much patience will the management of a publicly traded company have in this scenario? I think this makes for a very interesting situation in South Florida, and it will bear watching as to how the club is operated in the coming seasons.
It is no secret that there are teams in the NHL that are struggling financially. Not every franchise is blessed to have local ownership that believes in their franchise and the local market as do the Predators. Jim Balsillie notwithstanding, there are not a lot of individuals that are willing to write a check to buy a franchise right now. It remains to be seen if this type of ownership model will become more prevalent in the NHL.
The only other professional sports team with this type of ownership arrangement is the Green Bay Packers, although there are other outside entities that have ownership interests in professional sports team. In hockey, the MLSE, the operating group for the Maple Leafs, is 58% owned by the Ottawa Teachers Pension Plan. Most hockey clubs are owned by individuals or investment groups, and the purchase by SPAC represents the first ownership entity in the NHL that is a publicly traded company.
The issue that I raised in my post on April 27th is the central question about this type of ownership model, and that is who will be calling the shots for the operation of the Panthers? With this type of ownership model, the GM is going to answer to the board of a publicly traded company. Will the product that is put on the ice be affected by the best judgement of the GM or the board of SPAC, and what type of influence will the board of SPAC have on day to day management and operations of the club? Ostensibly, the main return on investment for SPAC will come from the development of the City of Oz, but the real estate market in South Florida has cratered. Suppose development doesn't occur for 3 to 5 years. The return that investors will get from their investment will be from the hockey club and other events at the arena. The Panthers have struggled on the ice and at the gate, failing to make the playoffs since 2000 and ranking 24th in attendance as of the end of the 2008 season, and the arena has not made money from non-hockey related events. What happens if the hockey club continues to struggle and loses money? How much patience will the management of a publicly traded company have in this scenario? I think this makes for a very interesting situation in South Florida, and it will bear watching as to how the club is operated in the coming seasons.
It is no secret that there are teams in the NHL that are struggling financially. Not every franchise is blessed to have local ownership that believes in their franchise and the local market as do the Predators. Jim Balsillie notwithstanding, there are not a lot of individuals that are willing to write a check to buy a franchise right now. It remains to be seen if this type of ownership model will become more prevalent in the NHL.
Subscribe to:
Posts (Atom)