[News] Billionaire signs agreement for majority stake in Hurricanes with option for the rest

[sureLoss]

News Update

https://www.nhl.com/hurricanes/news/...es/c-293781954

Don Waddell, President of Gale Force Sports & Entertainment, today announced that Dallas entrepreneur and philanthropist Tom Dundon has signed an agreement to purchase a majority stake in the National Hockey League's Carolina Hurricanes. Pending league approval and the finalization of the sale, Dundon will take control of all team operations.

"I am thrilled to continue to build upon what Peter Karmanos started in Raleigh," said Dundon. "The Hurricanes are a team on the rise, and I believe we have an opportunity to take the franchise to the next level. I'm ready to get to work."

Dundon is the Chairman and Managing Partner of Dundon Capital Partners, a Dallas-based private investment firm. His investment activities have spanned the entertainment, healthcare, real estate and hospitality, technology, automotive and financial services sectors. He is the majority owner of Employer Direct Healthcare and serves as the co-chairman of Topgolf. He and his wife, Veruschka, have five children and reside in Dallas.

Looks like prospective buyer is meeting the NHL Executive committee today:


Frank Seravalli @frank_seravalli
Prospective #Hurricanes owner Tom Dundon, on the right, wrapped up meeting with current owner Peter Karmanos here in West Palm Beach. Announcement expected today on #Canes sale.

Darren Dreger @DarrenDreger
Now appears as if Karmanos and Dundon are about to enter the NHL's executive committee meeting.


background:
http://www.sportsnet.ca/hockey/nhl/c...s-billionaire/

Carolina Hurricanes owner Peter Karmanos is in discussions to sell the team to billionaire Dallas businessman Thomas Dundon, according to Sportsnet’s John Shannon.

The potential deal with Dundon precludes the team from leaving Carolina, adds Shannon.

Karmanos has owned the team since 1994 when they played out of Hartford and were known as the Whalers. He moved the team to Carolina in 1997-98, where they became known as the Hurricanes and later won a Stanley Cup in 2006.

According to a story in the Raleigh News and Observer, there may be three more potential buyers for the team after talks over the summer with Chuck Greenberg slowed down.

“The Greenberg thing had been ongoing as we all know,” Waddell told Chip Alexander. “It has slowed down. We haven’t heard back from Chuck in a while. We believe he is actively trying to find investors.

“But there are other groups that have now stepped forward and taking hard looks at the franchise. Obviously, Tom Dundon’s name came out today, a Dallas businessperson who has a lot of interest.”

before anyone gets excited about relocation, there are reports that the sale is conditional on NO relocation

[Strange Brew]

If true, so much for that team moving to Houston.

[sureLoss]

Nick Kypreos @RealKyper
Told that @NHLCanes majority interest sale to billionaire Tom Dundon had a team value just shy of 500m. Pete Karmanos will retain just under 50% ownership to protect future growth in franchise values. @NHL @Sportsnet

Pierre LeBrun‏Verified account
@PierreVLeBrun
Karmanos expected to retain 48 percent share of the team in sale to Tom Dundon

So if above is true, Dundon is putting ~$260 million into the Hurricanes.


edit:

Pierre LeBrun @PierreVLeBrun
Tom Dundon, if the purchase agreement goes through, would own 52 percent of the Hurricanes with an option in 3 years to buy the remaining 48 percent

[Since1984]

Originally Posted by sureLoss

Nick Kypreos @RealKyper
Told that @NHLCanes majority interest sale to billionaire Tom Dundon had a team value just shy of 500m. Pete Karmanos will retain just under 50% ownership to protect future growth in franchise values. @NHL @Sportsnet

Pierre LeBrun‏Verified account
@PierreVLeBrun
Karmanos expected to retain 48 percent share of the team in sale to Tom Dundon

So if above is true, Dundon is putting ~$260 million into the Hurricanes.


edit:

Pierre LeBrun @PierreVLeBrun
Tom Dundon, if the purchase agreement goes through, would own 52 percent of the Hurricanes with an option in 3 years to buy the remaining 48 percent

I wonder if the "No Move/Relocation" clause will only be for the 3 years Karmanos is a minority owner.

[Young_Guns]

Originally Posted by Since1984

I wonder if the "No Move/Relocation" clause will only be for the 3 years Karmanos is a minority owner.

I believe that is the writing on the wall. As soon as PK is eligible to be bought out, he will be. At that time, the owner(s) will be able to relocate or sell the franchise to someone who is willing to relocate the Hurricanes.

Hockey isn't working in Carolina, even with a fairly recent Stanley Cup victory. Fair to assume that Houston or Quebec City will be the landing spot? Or perhaps that would be around the same time Seattle should have their new arena complete?

Houston, Quebec City, or Seattle would all be better locations than Raliegh in my opinion.

[nfotiu]

WTH does this mean:
Pete Karmanos will retain just under 50% ownership to protect future growth in franchise values. @NHL @Sportsnet


He really sold it for 260 million, but we'll call it 500 million so that all the other owners can keep pretending their teams are worth twice as much as they are?

[Young_Guns]

Originally Posted by nfotiu

WTH does this mean:
Pete Karmanos will retain just under 50% ownership to protect future growth in franchise values. @NHL @Sportsnet


He really sold it for 260 million, but we'll call it 500 million so that all the other owners can keep pretending their teams are worth twice as much as they are?

Lol pretty much. OR he will get his remaining ~ $250 mil in 3 years when he is eligible to be bought out as minority owner.

[calf]

Originally Posted by nfotiu

WTH does this mean:
Pete Karmanos will retain just under 50% ownership to protect future growth in franchise values. @NHL @Sportsnet


He really sold it for 260 million, but we'll call it 500 million so that all the other owners can keep pretending their teams are worth twice as much as they are?

I think it is awkwardly worded. I read that as if the franchise value increases in 3 years, he'll want to be able to cash out his remaining 48% for more than the $500M valuation.

[Strange Brew]

Originally Posted by Young_Guns

I believe that is the writing on the wall. As soon as PK is eligible to be bought out, he will be. At that time, the owner(s) will be able to relocate or sell the franchise to someone who is willing to relocate the Hurricanes.

Hockey isn't working in Carolina, even with a fairly recent Stanley Cup victory. Fair to assume that Houston or Quebec City will be the landing spot? Or perhaps that would be around the same time Seattle should have their new arena complete?

Houston, Quebec City, or Seattle would all be better locations than Raliegh in my opinion.

The Houston guy wants to own a team so I don't think Houston an option for relo unless it's a sale.

[nfotiu]

Originally Posted by calf

I think it is awkwardly worded. I read that as if the franchise value increases in 3 years, he'll want to be able to cash out his remaining 48% for more than the $500M valuation.

That's probably what they intend it to say, but I think the reality is probably closer to my interpretation. There's no way that team is worth 500 million in that market.

Actually, it probably is something like if they sell for 600 million Karmonos gets paid out for his 48%. If it stays in Raleigh for 3 years, then the buyout is for an undisclosed sum that is much less than 240 million.

[AC]

@PierreVLeBrun
NHL commissioner Gary Bettman, addressing media post-meeting, announces that purchase agreement has been signed with Carolina and Tom Dundon

@PierreVLeBrun
Bettman says the Hurricanes sale not ready to close yet but should be within a few weeks. Bettman stresses that Dundon is buying the team to keep them in Raleigh.

[Hemi-Cuda]

Originally Posted by Strange Brew

If true, so much for that team moving to Houston.

Good. Carolina is actually a good hockey market and they had a solid following after winning the cup, it's just sad that they dove off a cliff so soon after and they've floundered for a decade under terrible management. If a new owner comes in and cleans house, I'd want to see what the fanbase looks like with a decent team to cheer for before relocation

[Finger Cookin]

@FriedgeHNIC
Word on CAR sale is Dundon buys a touch over 50 per cent at $460M. Option to buy rest is valued at $550M

Am I mis-reading this, or is this valuing the Hurricanes at $1.01B? The whole thing being worth $450M-$550M even seems high. The recently published Forbes' valuations pegged the Canes at $370M. ¯\_(ツ)_/¯

[sureLoss]

Originally Posted by Finger Cookin

@FriedgeHNIC
Word on CAR sale is Dundon buys a touch over 50 per cent at $460M. Option to buy rest is valued at $550M

Am I mis-reading this, or is this valuing the Hurricanes at $1.01B? The whole thing being worth $450M-$550M even seems high. The recently published Forbes' valuations pegged the Canes at $370M. ¯\_(ツ)_/¯

Friedman just worded it wrong.

Elliotte Friedman @FriedgeHNIC
I understand your confusion, but no. It means the 50.01 per cent now is that much of $460M, and in three years, the other 49.99 is that percentage of $550M.


He is saying that 50.01% of $460 plus 49.99% of 550M for a totat purchase price of $505 million

[Finger Cookin]

Karmanos bought the Whalers for $47.4 in 1994. Getting more than a 1000% return over 23 years. Pretty good, pretty good.

[sureLoss]

News Update

Done deal, Dundon buys 61% of the Hurricanes
https://www.nhl.com/hurricanes/news/...es/c-294863198

Also reported he signed a commitment not to move the team for 7 years.

[Toonage]

Originally Posted by sureLoss

News Update

Done deal, Dundon buys 61% of the Hurricanes
https://www.nhl.com/hurricanes/news/...es/c-294863198

Also reported he signed a commitment not to move the team for 7 years.

Please welcome your 2025 Quebec Nordiques!

[sureLoss]

So one of his first initiatives: Anyone can sit in the lower bowl.

https://twitter.com/user/status/958391798430404615

[Toonage]

Move the season ticket holders that have been paying for the lower bowl into the suites if thats the case. Or something. Need to reward them.

[sureLoss]

Originally Posted by Toonage

Move the season ticket holders that have been paying for the lower bowl into the suites if thats the case. Or something. Need to reward them.

Yup, it won't be a good feeling for the season ticket holders how have been paying a premium for lower bowl tickets to have to sit next to fans who are just paying for nosebleeds.

In the short term this will devalue all the tickets. Why pay lower bowl ticket prices when you can buy the cheapest seat in the building and still sit in the lower bowl.