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Old 07-17-2018, 08:56 AM   #1
sureLoss
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Icon39 49% of Coyotes for sale. UPD: Forbes says Coyotes lost $50 million last season.

https://www.forbes.com/sites/mikeoza.../#56baaef33fb7

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Andrew Barroway, the owner of the Arizona Coyotes, is looking to sell 49% of the National Hockey League team at a $500 million valuation, according to multiple sources.

Barroway became the majority owner of the Coyotes in December, 2014 and the sole owner of the hockey team in June 2017.

The fact that Barroway is now seeking cash for his team is not surprising. When he bought out his partners I wrote: “Barroway’s buyout of his partners is the riskiest deal I can recall in recent memory. ... Barroway and the Coyotes are now leveraged to the hilt. As of now, the Coyotes have $250 million of debt. There is $100 million of NHL credit facility debt and two loans from MGG Investment Group; one for $100 million with about a 10% interest rate and a payment-in-kind loan for $50 million that would be redeemed in six years for $100 million.”
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One source believes the deal as being presented would give the new investor a path towards control, if not immediate control. The team has consistently lost money. By our count, the Coyotes have posted aggregate operating losses (in the sense of earnings before interest, taxes, depreciation and amortization) of $45 million for the last five seasons through 2016-2017.
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Old 07-17-2018, 09:02 AM   #2
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I wouldn't be interested in investing if I had the money without an iron clad commitment by the NHL to help me move that team to Houston or Seattle.
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Old 07-17-2018, 09:11 AM   #3
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Does he not hold an out-clause for leaving Arizona, within his original purchase agreement? (ie; minimum attendance ?)
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Old 07-17-2018, 09:13 AM   #4
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Gonna be interesting to see how this shakes out. The $500 million valuation is laughable, but since that's what the Golden Knights expansion fee was, would be humiliating for the league to accept a valuation of like say $300 million which is more realistic. Would also hurt what they could ask for a Seattle fee.
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Old 07-17-2018, 09:16 AM   #5
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Originally Posted by cam_wmh View Post
Does he not hold an out-clause for leaving Arizona, within his original purchase agreement? (ie; minimum attendance ?)
I think it was losses exceeding $50 million dollars (which I'm pretty sure has been met - Excerpt from article in 2015

Glendale lost about $8 million on its arena expenditures in the first year of its 2013 agreement with the Coyotes in part because revenue from parking and concerts fell short of projections. The city has committed to paying the team $15 million annually for 15 years, or a total of $225 million, to manage Gila River Arena, and officials hoped the ticket surcharge and parking revenue would cover much of the expense.

The deal allows the Coyotes to leave after five seasons if the team's combined losses exceed $50 million after the 2017-18 season.


https://www.azcentral.com/story/news...rags/25922095/
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Old 07-17-2018, 09:19 AM   #6
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Gotcha, that makes them more valuable then, with that ability to move the team.
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Old 07-17-2018, 09:22 AM   #7
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Originally Posted by CaptainCrunch View Post
I wouldn't be interested in investing if I had the money without an iron clad commitment by the NHL to help me move that team to Houston or Seattle.
But then the League doesnt get its $500M Expansion Fee.
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Old 07-17-2018, 09:23 AM   #8
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The league isn't expanding to 33 teams anytime soon. They'll get their expansion money from Seattle and a relocation fee from Arizona to Houston.
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Old 07-17-2018, 09:47 AM   #9
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Quote:
Originally Posted by cam_wmh View Post
Gotcha, that makes them more valuable then, with that ability to move the team.
That makes them more valuable, but that evaluation puts them at over a Billion dollars without a home to play hockey in (they are only valuable if they move). If there was that much money in moving the team to another market, it wouldn't be "up for sale". It would be moved. It's absolutely crazy! The Chicago Blackhawks are evaluated at around 975 Million. Arizona will never be an original six team and will never move to a market that is as receptive to hockey as Chicago. And I'm sure that Chicago dosent have have 250 million of assumable debt!

I just can't wrap my head around this; what is his intent here? If he is trying to put people on notice that his team is up for sale, why go with a number that makes people with that kind of money go "how much?!?……. Wooof..."

And he remains the majority owner!

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Old 07-17-2018, 09:48 AM   #10
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South Calgary Coyotes?
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Old 07-17-2018, 09:51 AM   #11
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the dragons and the sharks would immediately tune out with that valuation.

what a financial nightmare this team has been since they moved from winnipeg.

does jim ballisle still have any cash left?
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Old 07-17-2018, 09:59 AM   #12
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Seattle will 100% be an expansion. There's no way any of the owners will give up that sweet expansion cash ($20+ million each).


I can't see the Coyotes selling for that kind of value without assurances of moving the team being allowed.

A few weeks ago, there was a story that the Winterhawks have registered a bunch of "NHL Portland" related web addresses. Could this be related? Or is Houston the most-likely destination? Also, Milwaukee's new arena opens this fall.
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Old 07-17-2018, 10:01 AM   #13
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CP group buy...?
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Old 07-17-2018, 10:02 AM   #14
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Excerpt from Forbes 2017 NHL francise value

https://www.forbes.com/pictures/5a1c.../#5214349d2fa8

Barroway bought control of the Coyotes in early 2015 for $305 million. The $240 million valuation consisted of $60 million of equity and $180 million of debt. IceArizona, which bought the Coyotes in 2013, made out well in the deal, taking out $90 million in cash from the sale to Barroway, roughly doubling its $45 million equity investment. But Barroway and the Coyotes are now leveraged to the hilt. As of now, the Coyotes have $250 million of debt consisting of $100 million from the NHL credit facility and two loans from MGG Investment Group; one for $100 million with about a 10% interest rate and a payment-in-kind loan for $50 million that would be redeemed in six years for $100 million.
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Old 07-17-2018, 10:05 AM   #15
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Quote:
Originally Posted by Northendzone View Post
the dragons and the sharks would immediately tune out with that valuation.

what a financial nightmare this team has been since they moved from winnipeg.

does jim ballisle still have any cash left?
788 Million in 2017. Down from 3.8 billion in 2011. Seems like the perfect guy for the coyotes.
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Old 07-17-2018, 10:09 AM   #16
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But then the League doesnt get its $500M Expansion Fee.

Understandable, but if I have the cash to buy into Phoenix, that's simply not my problem, that market is.
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Old 07-17-2018, 10:17 AM   #17
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Either move the team to Quebec City or contract them. The Phoenix Coyotes are an embarrassment to the league and the sport.

A team nobody has ever wanted to watch owned by a never ending string of charlatans. This has been an ongoing cluster #### for over a decade. End it already.
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Old 07-17-2018, 10:22 AM   #18
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WELCOME TO SUMMER. lol
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Old 07-17-2018, 10:40 AM   #19
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Would be nice to see the Quebec group find a way to bring back the Nords. Only if they bring back those beauty original jerseys though and don't do something pathetic like the Jets did.
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Old 07-17-2018, 10:41 AM   #20
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Quote:
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But then the League doesnt get its $500M Expansion Fee.
That's why they charged True North a relocation fee. The boss gets his cut, no matter what.

As far as this case goes, LMAO at thinking the Coyotes are worth over $1 billion.

Also, the Coyotes' are on a year-to-year lease right now, so the team is portable with six months notice as they have to declare an intention to leave by December 31: https://www.azcentral.com/story/news...ena/963379001/.
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