COULD THE NHL RETURN TO WINNIPEG NEXT SEASON?

The Goldwater Institute has not yet filed their suit. They won't, I believe, until Glendale signs the agreement with hulzinger.

casualchris wrote:It hasn't sold yet. It's not a piece by piece thing, either its all sold or not.

I did not know that. So "one" person/group has to buy the entire $100 million bond outright?

I still dont understand this deal.

team is 170 mill purchase
rich guy will put in 70 of his own.
city will loan him 100 million which they will pay back over 30 years by using parking revenue on parking spots they gave him to give to them, which they will raise by selling bonds..

( I guess he never actually pays it back??/)

city WILL PAY HIM 97 MILL over 5 years to manage the arena.


WTF??

so dude puts in 70 mill...

gets 100 mill loan.. that someone else pays back

gets PAID 100 million per 5 years??

so... how is it even possible for him to lose money on this?

He really isn't putting any of his own coin into this: $100 million loan plus $97 management fee = $197 million. League "sold" the team to him for $170 million. He has to repay the $25 million loan Glendale used to "guarantee" the NHL they would not lose any money this season.

If he defaults on the $100 million loan Glendale has guaranteed it as well. Win-win-win.

However, this team has lost money every single year they've been in Arizona. Usually $20 - $30 million annually. It has been reported that team had lost $40 million up to last week.

Why hulzinger feels he can turn this around is beyond me. They have to put many more fannies in the seats at non-reduced rates. They need TV and radio revenue. Etc...

If anyone believed Winnipeg could not support a team how in the world could anyone believe Phoenix could?

If this deal goes forward mark my words, hulzinger will be looking to bail within two years. That dude did not become a bazillionaire by accident.

"
Why hulzinger feels he can turn this around is beyond me. They have to put many more fannies in the seats at non-reduced rates."


Because he will get the Arena 100% as his. How much money does MTS centre make on hockey as compared to Concerts/other events????


exactly.

I have no clue what the arena revenues are in Arizona.

MTS Centre is one of the top grossing arenas in North America (yes, 'tis true). That revenue will surely subsidize an NHL team.

But I believe an NHL team will still need to sell out in Winnipeg at full price and maximize every other revenue stream to succeed.

They average something like 12,000 in Arizona with many (most?) of the tickets deep discounted. Many games there are <6,000 seats ocupado.

grumpy old man wrote:He really isn't putting any of his own coin into this: $100 million loan plus $97 management fee = $197 million. League "sold" the team to him for $170 million. He has to repay the $25 million loan Glendale used to "guarantee" the NHL they would not lose any money this season.

If he defaults on the $100 million loan Glendale has guaranteed it as well. Win-win-win.

It's abusiness trasaction by a successful businessman who wants to minimize risks. We can be more than safe to assume that if a Canadian business was interested in putting an offer forward, they would insist on hedging their investment with some city or provincial support. Anything else would be naive.

Can't blame hulzinger. If Glendale city councillors want to break their bank to force this through more power to him. Seems that mayor and a few of her councillors would meld right into Winnipeg city council.

As to naive? It's naive to believe every business transaction is protected by a municipal or provincial government. Most business people don't have the luxury of someone propping them up.

Perhaps I missed the point?

Hulzinger is the smart one, valuing the rights of ownership at $70 million, which is $15 million less than was paid for it back in 1995.

Deank wrote:"
Why hulzinger feels he can turn this around is beyond me. They have to put many more fannies in the seats at non-reduced rates."


Because he will get the Arena 100% as his. How much money does MTS centre make on hockey as compared to Concerts/other events????


exactly.

There is an arena in Phoenix that is in direct competition to the one in Glendale. Glendale has 4 other events booked at Jobing up to September aside from the Coyotes, does not compare at all to MTS Center.

But it will especially once the guy is paid 97 million to manage it....

Wouldn't it be wiser for him to let the Coyotes move out, and then have the arena all for himself to do whatever he wants, plus, buying it at a discount price???
He could get the Beach Boys to play concerts 367 days a year...
(367: In the USA, everything is possible...).

Why settle for just a piece of cake when you can have some and eat all you want as well?

Electrician wrote:Wouldn't it be wiser for him to let the Coyotes move out, and then have the arena all for himself to do whatever he wants, plus, buying it at a discount price???
He could get the Beach Boys to play concerts 367 days a year...
(367: In the USA, everything is possible...).

you mean.. once they fail and he says he has no choice but to sell them? while keeping the arena AND not paying back any loans?

That's what'll likely happen.

Within two years.

Isn't that having your cake and eating it too?

Yeah, I guess he deserves it.
He'll never make it up the billionaire chart.
He's looking at the short-term grabbings...
Sounds like AsperNomics.

http://www.winnipegfreepress.com/sports/hockey/102-million-reasons-to-get-coyotes-118154169.html

"Sources, including one from Winnipeg, have confirmed that the
$102-million annual revenue number for potential Winnipeg NHL franchise
run up the flagpole by Hockey Night in Canada's Scott Oake last Saturday is a realistic scenario."

http://www.winnipegfreepress.com/opinion/columnists/goldwater-puts-pressure-back-on-glendale-118154139.html?viewAllComments=y

Scroll to comment by: 27969538 at 11:54 AM

Bob Irving said on CJOB yesterday morning that based on very recent information (that morning) the chance is 50/50% for an imminent announcement that of the return to Wpg. I like those chances. Betting that we will hear that before the end of March. I'll take that bet with anybody willing.

I don't see how Phoenix can stay where they are under the current deal that's on the table. Worst case scenario is that the team is sold-- ahem, sorry, GIFTED, to Hulsizer, and then the whole things ends up in the courts for a few years while the Coyotes play on.

On the PLUS side, Glendale Mayor Elaine "Doug and the" Scruggs recently admitted that they may have to look at getting an AHL team to fill the arena, which is a HUGE change in direction from the "If we lose 41 dates of hockey a year, the arena goes dark and the city will start on fire" bullspit she's been sprouting for the last year!

This ain't over yet.

http://www.winnipegfreepress.com/breakingnews/Hulsizer-to-guarantee-75-million-of-bond-proceeds-for-Coyotes-118340139.html

This is getting silly imo.

Goldwater said that Hulsizer should be floating the bonds himself in the first place. To me, this is a clear admittance on the part of Hulsizer that the original deal was wrong.

Personally, I think that deal is falling apart and not being saved at the 11th hour.

I'm surprised that Hulzinger has agreed to this. He must be an intelligent man. Why would he expose himself to such risk? That team has lost $30 million or more every single year since it moved to Phoenix.

Did the Winnipeg Jets lose $30 million over their entire existence?

Something is seriously wrong with this picture.

I reckon the sales are flat on the bonds. Why would anybody buy them with a law suit stopping the deal in the process?