[News] UPD: NHL BOG approves Las Vegas as 31st team for 2017/18. $500 million expansion fee

[Coach]

Interesting.

The ATL move was pretty hush hush, and with Carolina's financial issues, it wouldn't surprise me that there is an announcement of a sale.

[EldrickOnIce]

My guess is more simply an acknowledgement that they met the criteria of the process.
Former PM Mulroney (BOD of Quebecor) said this recently

“Obviously, you know that with the Canadian dollar where it is, it is an extraordinary challenge not only for Quebec, but for all of Canada vis-a-vis the United States,” said Mulroney (transcription via Toronto Sun.) “So we must deal with this reality.”
Mulroney, Canada's 18th Prime Minister, said talks between Quebecor and the NHL are ongoing, but stressed that nothing is imminent.
“Will it be for tomorrow morning? No, I think not. But I think we are high up on the list of important applications to remember in the future," said Mulroney.

But you never know, I guess. Could be a franchise move...

[Coach]

What would the cost be of buying the Hurricanes plus the relocation fee (that's a thing, right?). Is it much different than the $500m for expansion? Can't imagine they are very close.

[LanceUppercut]

Originally Posted by MattyC

What would the cost be of buying the Hurricanes plus the relocation fee (that's a thing, right?). Is it much different than the $500m for expansion? Can't imagine they are very close.

I would guess 290 million as a relocation fee, 210 million to purchase the Hurricanes. That way every other team gets another 10 million, plus 16.7 from the Vegas expansion team.

[dammage79]

Is it only the Hurricanes in distress? I thought NJ was in dire straits too. And they done nothing so far and have a long way to go icing any sort of team other than add Savards cap hit.

[Tyler]

Originally Posted by MattyC

What would the cost be of buying the Hurricanes plus the relocation fee (that's a thing, right?). Is it much different than the $500m for expansion? Can't imagine they are very close.

A relocation fee would be significantly cheaper than an expansion fee. I believe Winnipeg's was $60M. Likely the route QC will go.

[EldrickOnIce]

FWIW, Forbes valuation of the Canes is $225M
Jets paid $170M for the Thrashers, plus a $60M relocation fee.

I also recall there has been some talk about meetings involving QC and Canes ownership to relocate the franchise without change of ownership - but I may misremember

[killer_carlson]

Originally Posted by Bunk

Huh.

My exact thought.

I had very low expectations that the NHL would go back to Quebec - and I hope that they do - so now there is a glimmer where before there was nothing.

[sureLoss]

Why would Bill Foley agree to pay $500 million in expansion fee, if there is a relocation available for much cheaper?

If there is a relocation any time soon, it has to cost similar to expansion, or it undermines any future expansion that the league will do in the future.

[Coach]

Originally Posted by killer_carlson

My exact thought.

I had very low expectations that the NHL would go back to Quebec - and I hope that they do - so now there is a glimmer where before there was nothing.

Really? I think it's a forgone conclusion that they go back to QC. Just not with an expansion team. It's a pretty obvious relocation target.

[LanceUppercut]

Originally Posted by sureLoss

Why would Bill Foley agree to pay $500 million in expansion fee, if there is a relocation available for much cheaper?

If there is a relocation any time soon, it has to cost similar to expansion, or it undermines any future expansion that the league will do in the future.

Exactly. That's why the figures I posted above would be the Quebecor purchase price. 290 million relocation, 210 million actual purchase price.

[Enoch Root]

If it were $500M either way (expansion, or acquire and move the Canes), which would you prefer as the buyer?

Looking at the expansion draft rules, I might be inclined to go the expansion route. Vegas will probably end up with a better defense and better goaltending than the Canes currently have.

Plus, it sounds like they are guaranteed to draft no worse than 4th for the next 4 years (or whatever the details are). And no baggage.

[LanceUppercut]

Originally Posted by Enoch Root

If it were $500M either way (expansion, or acquire and move the Canes), which would you prefer as the buyer?

Looking at the expansion draft rules, I might be inclined to go the expansion route. Vegas will probably end up with a better defense and better goaltending than the Canes currently have.

Plus, it sounds like they are guaranteed to draft no worse than 4th for the next 4 years (or whatever the details are). And no baggage.

If I was Vegas, I'd take the expansion route for those reasons. As for Quebec, the NHL won't give them a choice in the matter, it's either relocation or no team.

[Bunk]

Originally Posted by troutman

The screen is in English and French, and some are reading into this that there will be an important message for QC.

"Huh" not "Huh?"

I understand what might be implied.

[Resolute 14]

Originally Posted by EldrickOnIce

FWIW, Forbes valuation of the Canes is $225M
Jets paid $170M for the Thrashers, plus a $60M relocation fee.

I also recall there has been some talk about meetings involving QC and Canes ownership to relocate the franchise without change of ownership - but I may misremember

No change in ownership is extremely unlikely given the lawsuit between Karmanos and his sons revolves around daddy using the kids' trust funds to pay for the team's operations. He's going to have to sell the Canes to pay that back.

However, to repeat myself, there is virtually no chance relocation is announced today. It's too late to do anything for 2016-17.

[EldrickOnIce]

Zero chance it costs the same.
Foley wanted to start this year. No way he wants to wait the 3-5 years (or whatever) it may take for the Canes (Or whoever) to relocate.
So make it an even 100M relocation fee, and you have +/- 350M to possibly relocate a team some time in the future, versus 500M to start in 2017-18.

[EldrickOnIce]

Originally Posted by Resolute 14

No change in ownership is extremely unlikely given the lawsuit between Karmanos and his sons revolves around daddy using the kids' trust funds to pay for the team's operations. He's going to have to sell the Canes to pay that back.

However, to repeat myself, there is virtually no chance relocation is announced today. It's too late to do anything for 2016-17.

Out of thanks, so thanks for clearing this up.

And you are 100% right on timing - I expect time frame for relocation to be some years down the road, if at all.

[speede5]

Does this Black Knights have any connection to the raquet company?

[troutman]

[LanceUppercut]

Originally Posted by speede5

Does this Black Knights have any connection to the raquet company?

It's the name of Foley's college team.