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Up to six NHL teams in financial trouble

dash

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So writes David Shoalts of the Globe and Mail...Also Charles Wang may be looking to move the Islanders.

An interesting item in John Shannon’s blog on Sportsnet.ca the other day stated as many as six NHL teams needed advances on television and/or revenue-sharing money to pay the bills.

Given the persistent financial state of several NHL markets, there are always one or two franchises needing an advance on money that is usually paid out in September and October. But six is a troubling number despite our troubled economic times.

Shannon did not identify the teams but there are no surprises among them. Word is the needy half-dozen are the Dallas Stars, Atlanta Thrashers, Phoenix Coyotes, Florida Panthers, New York Islanders and (maybe) the Tampa Bay Lightning. The Stars are not normally found in this group but the team’s on-ice woes combined with the financial problems of owner Tom Hicks mean there are no checks coming from him to cover any losses. The Lightning might not be in this group because it is not clear just when new owner Jeffrey Vinik’s responsibilities for covering the team’s losses started.

The team to watch in this group is the Islanders. Owner Charles Wang is still waiting for the Town of Hempstead to let him and a partner proceed with their Lighthouse project that includes renovations to Nassau Coliseum along with an entertainment, retail and business development. However, a banker of our acquaintance has said even if Wang gets the green light the project is unlikely to proceed because banks are not willing to finance billion-dollar deals willy-nilly anymore, especially in areas like Long Island that do not need more office space.

However, Wang and NHL commissioner Gary Bettman are getting frustrated with local politicians and bureaucrats. Bettman told the Long Island newspaper Newsday last Friday that Wang may move the team.

If the town does not come through, Bettman said, Wang will “start looking at his options on Long Island first to see what he can do, but the club has to have a new arena.” Newsday writer Steve Zipay noted that Bettman did not deny a possible move to Queens to “a Flushing Meadows tract adjacent to Citi Field that apparently will be up for bid this summer.”


Actually, things may be more serious than that. Talk among NHL insiders is that the Islanders are now in deep financial trouble. Some are worried Wang may be the next NHL owner to toss the keys to the franchise to Bettman and say he is finished paying for losses in excess of $20-million (U.S) every year.
 

dash

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I don't understand Dallas. Earlier this season Forbes has them ranked as the 8th most valuable NHL franchise, yet they're in dire straits? How does that work? Economics is Greek to me.

NHL Team Valuations - Forbes.com

I think it may have something to do with Tom Hicks overextending himself with forays into EPL soccer teams (amongst other business ventures) and those interest payments are killers. :eek:
 

jstewismybastardson

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Its gonna take alot of writing for Dave Shoalts to overcome this

IE_GM_punked_ManU.jpg
 

dash

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In fairness, he wasn't the only one that bit on that story. Don't these guys know not to jump the gun on April 1st?!?
 

jstewismybastardson

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In fairness, he wasn't the only one that bit on that story. Don't these guys know not to jump the gun on April 1st?!?

this is true


aside:

During the April 20 budget estimates committee meeting, NDP Olympics critic Kathy Corrigan asked Minister Mary McNeil about 1,000 Vancouver Canucks’ playoff tickets for VANOC.

Corrigan: Just got a little off the wall question here that I’m just going to add in. It’s nothing to do with what I’ve just been asking. I heard recently that a thousand tickets for the first round of the Canucks playoff — and this is just rumour — I believe for the first game, were given to VANOC as part of the agreement between VANOC and GM Place.
I know this has nothing to do directly with the minister, but I’m just wondering if the minister is aware of this agreement and whether or not any of those tickets went to anybody in government — if, in fact, this rumour is true.
McNeil: No, I have no knowledge of that — interest, but no knowledge. You never know; it may come up in question period.

Corrigan was apparently fooled by a clever April Fool’s Day prank on Team 1040’s B.S. in the Morning.

Co-hosts Barry Macdonald and Scott Rintoul cooked up a story about IOC president Jacques Rogge buying 1,000 first-round playoff tickets in the lower bowl of General Motors Place, displacing Canucks’ ticket subscribers
 

puckhead

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I don't understand Dallas. Earlier this season Forbes has them ranked as the 8th most valuable NHL franchise, yet they're in dire straits? How does that work? Economics is Greek to me.

basically, the value of a business is the (discounted) sum of its cash flows through the life of the investment.
so that includes the profits or losses along the way, but also the anticipated cash from selling the team down the road.
Also, they have a favourable stadium deal, and a pretty strong (valuable) brand.

even though Dallas stinks now (on the ice and off it) , they have historically done well, and its reasonable to think that they will sell out again once the economy in that area rebounds. Oil price is strong, is just nat gas that is too low.
 

Larry N

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I think it may have something to do with Tom Hicks overextending himself with forays into EPL soccer teams (amongst other business ventures) and those interest payments are killers. :eek:

Yeah, the Liverpool venture is not working out well for Hicks at all. In-fighting with his partner (Gillette, I think), and the fact that Liverpool may not qualify for European play next year really turns the screws on that investment. It doesn't surprise me in the least if the Stars are collateral damage.
 
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forty_three

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At least they stopped whining about Columbus and their crappy arena deal "losing millions".
 

jstewismybastardson

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i read the other day that Bettman was still trying to keep the fires burning with the Ice Edge group, letting them know teams other than the Coyotes can still be had

Courting a group with poor financing to enter the league fold ... the Gary Bettman way!!!
 

dash

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i read the other day that Bettman was still trying to keep the fires burning with the Ice Edge group, letting them know teams other than the Coyotes can still be had

Courting a group with poor financing to enter the league fold ... the Gary Bettman way!!!

Nobody does it better...
 

Comeds

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Geez, it seems as if the Islanders have been in trouble as as long as I have been watching the NHL, a dozen years or so.
 

The Q stache

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I read about it when it when the idea was 1st born, but am confused now. They've already started construction on a proposed project?!


P.S. Why don't owners just invest in things like cheap crappy pizza? :D

I could go for a Hot and ready Pizza right now. Toobad I don't have 5 bucks:(
 

forty_three

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People realized Columbus doesn't have the worst deal in the league.

It's actually a pretty good deal, there's just no chance to expand it. Nationwide owns the building. End of story. No selling those rights.

But there's also no chance of the name shuffle or worse yet, having no name at all.
 

sTyLnK

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The only surprise on that list is Dallas. Then again, you guys have already explained the reason why.
 

Jimmy_the_Tongue

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I think it may have something to do with Tom Hicks overextending himself with forays into EPL soccer teams (amongst other business ventures) and those interest payments are killers. :eek:

That sounds an awful like a guy that Penguin fans will remember as Howard Baldwin....Baldwin was more interested in making movies and handing out contracts that he knew the team could never honor....and it almost cost the city of Pittsburgh the Penguins.....bad news, man...
 
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