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Post by mikecubs on Jun 13, 2017 21:48:21 GMT -6
Arizona Coyotes Owner Andrew Barroway Buys Out Partners For $240 MillionAndrew Barroway's buyout of his partners is the riskiest deal I can recall in recent memory. First, the valuation. The deal that was announced yesterday in which Barroway bought out the partners that owned 49% of the Coyotes valued the team at $240 million, the precise valuation we placed on the hockey team this past November. This information comes from a person with knowledge of the deal but who is not authorized to speak about it publicly. The valuation consisted of $60 million of equity and $180 million of debt.IceArizona, who 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. There is $100 million of NHL 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. On top of that leverage, the team is losing a lot of money. During the 2016-17 season, the Coyotes posted negative operating income (earnings before interest, taxes, depreciation and amortization) of about $20 million. Interest expenses brought the cash loss to roughly $27 million. According to my source, the deal stipulates that half of any equity contributions from new partners must go towards debt payments. To me, it's a rather precarious financial situation for Barroway and the Coyotes. So much so that it is very hard to for me to imagine the team staying in Glendale. www.forbes.com/sites/mikeozanian/2017/06/13/arizona-coyotes-owner-andrew-barroway-buys-out-partners-for-240-million/#4fb4af92178b
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Post by mikecubs on Jun 13, 2017 21:54:44 GMT -6
Barroway Buys All Of Arizona Coyotes In LBOIn what looks like a "leverage buyout of a leveraged buyout,"Andrew Barroway now owns all of the Arizona Coyotes. ArizonaSports.com reported yesterday that "Coyotes majority owner Andrew Barroway has completed his buyout of the team’s minority owners, making him the sole owner of the franchise." Barrowy acquired slightly over half of the NHL team in 2014 for $305 milion (enterprise value) in a leveraged transaction: Barroway committed $85 million of equity for 51% of team and arena operating rights, leaving IceArizona with $82 million of the equity for 49%. There was also $138 million of debt to derive the enterprise value of $305 million. Of the $85 million from Barroway, $40 million was cash and $45 million was a loan from IceArizona. The Coyotes have been losing money and battling with Glendale's mayor and city manager over a funding bill for a new arena. Last November we valued the team at $240 million with an operating loss (earnings before interest, taxes, depreciation and amortizaion) of $8 million during the 2015-16 season. Taxpayers have been bailing out the Coyotes. As reported by azcentral.com: "The city paid the NHL $50 million in subsidies to cover operating losses from 2010 to 2013, which helped keep the team in Glendale after the team's previous owner filed for bankruptcy protection. The city then awarded an annual $15 million arena-management fee to the Coyotes, but the city terminated the contract in 2015 and later hired another manager to run the arena for roughly one-third the cost. The team pays the city $500,000 per year to use the arena for all practices and games. The team keeps all of the revenue for hockey parking, merchandise, concessions and ticket surcharges, and retains 80% of the revenue from naming rights" at Gila River Arena. Barroway's net worth outside of the hockey team has been estimated at only around $50 million by some bankers I know, so he had to borrow to buyout his minority partners. ArizonaSports.com reports: "Barroway had initially considered bringing in additional investors such as Tampa Bay Rays minority owner Randy Frankel, but this buyout was completed through a loan with MGG Investment Group, a specialty finance group focused on direct lending. League sources said Barroway was also able to remove the NHL’s portion of the loan through MGG." I put in a inquity to MGG this morning regarding the capital structure and value of the deal but have not heard back. To me, this deal seems like a leveraged buyout of a leveraged buyout of a money losing team. That may not be as inredibly risky as it seems. The Coyotes are contractually bound to stay in Glendale only through the 2017-18 season. So Barroway's endgame is obvious: move or get a better deal from Glendale. Despite the bad blood between the city and Coyotes, the city may feel it needs to give Barroway more money. The city has a $13 million annual debt payment on the arena through 2033, bearing most of the construction debt. But endgames don't always end up as planned. In fact, the reason why the Coyotes and city of Glendale are in this mess is because the original endgame failed miserably. www.forbes.com/sites/mikeozanian/2017/06/13/barroway-buys-all-of-arizona-coyotes-in-lbo/#35caf2ac6e56
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Post by mikecubs on Jun 13, 2017 21:58:11 GMT -6
Coyotes' ownership change could clear way to Phoenix arenaArizona Coyotes majority owner Andrew Barroway is now the hockey team's sole owner, possibly setting the stage for a move to a downtown Phoenix arena. NHL sources confirmed to 12 News Monday that Barroway, a Philadelphia hedge fund manager who purchased a controlling stake in the team three years ago, bought out the team's chief executive officer, Anthony LeBlanc, and chief operating officer, Gary Drummond. The team is now looking for a new CEO. John Shannon, a hockey reporter with Canada's SportsNet who's been covering the deal, tweeted Monday that a multipurpose basketball/hockey/entertainment arena for the Coyotes and Phoenix Suns could be back in play, with help from NHL Commissioner Gary Bettman and NBA Commissioner Adam Silver. John Shannon ✔ @jsportsnet Soon, it's possible we start hearing about a new Suns/Coyotes partnership on a new arena. Sounds like Bettman and Silver are involved. The sports and entertainment market in the Phoenix area couldn't support a third arena, assuming the Coyotes abandoned their Glendale home and built an arena on their own. Phoenix Mayor Greg Stanton called last year for a joint Suns-Coyotes arena downtown. But a shared arena is complicated by money, politics and personalities. Here's the breakdown: Money A new arena could cost $400 million to $500 million. The teams would undoubtedly call on taxpayers to help foot the bill. (Unless Barroway has lined up new investors with deep pockets to write a check for the arena.) The City of Phoenix has a tax that could cover some of the cost, but taxpayers would have to approve its use for a new arena. Politics Can you name one elected official, in Phoenix or elsewhere, who would lead the campaign for an arena tax? Stanton could be running for higher office by next May. Would a successor pick up where Stanton left off? Personalities Phoenix insiders say Suns owner Robert Sarver wants nothing to do with the Coyotes. LeBlanc's departure might change that. The team's been mum on a multipurpose arena. Then again, the Suns are in no hurry. The Suns could get out of their lease at the Phoenix-owned Talking Stick Resort Arena in 2022. Meantime, the Phoenix City Council is exploring the cost of renovating Talking Stick as a basketball-only or hockey and basketball facility. The Coyotes want out of their Glendale arena ASAP. Bettman, who has toiled for a decade to keep the money-losing Coyotes in the desert, made that clear in a letter to Arizona state legislators last winter. As lawmakers were weighing tax breaks to help pay for a new hockey arena on the Arizona State University campus in Tempe, Bettman issued a veiled threat in a letter: "The simple truth: The Arizona Coyotes must have a new arena location to succeed. The Coyotes cannot and will not remain in Glendale." LeBlanc's days with the team appeared to be numbered after the tax plan collapsed. LeBlanc was part of an ownership group that acquired the Coyotes from the NHL after the team's 2009 bankruptcy. While he was forever telling fans a new arena was around the corner, LeBlanc's legacy will be that he kept the team here. NHL Deputy Commissioner Bill Daly, who's worked alongside Bettman to keep the team in Arizona, said in a prepared statement Monday: "The reorganization is an effort to consolidate and strengthen the ownership and to resolve various disputes among the existing owners. We believe this will better position the Club to achieve a long-term solution in the Valley." "Barroway is 100 percent committed to finding a long-term home for the Coyotes in the Valley," an NHL source said. Meantime, the Coyotes are playing on year-to-year leases at their Glendale arena. www.12news.com/sports/coyotes-ownership-change-could-clear-way-to-downtown-phoenix-arena/448061143
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Post by mikecubs on Jun 13, 2017 22:04:55 GMT -6
One thing to keep in mind for a new arena. A new arena by law MUST pass public vote. A renovation doesn't require public vote.
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Post by maniaaron on Jun 16, 2017 7:49:41 GMT -6
LeBlanc flipped the team,smart
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Post by rainmanrh on Jun 16, 2017 18:55:46 GMT -6
LeBlanc flipped the team,smart Yup, didn't take him long to figure things out.
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Post by maniaaron on Jun 16, 2017 21:16:07 GMT -6
LeBlanc flipped the team,smart Yup, didn't take him long to figure things out. he made money as owner of this circus, not a clown after all
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Post by mikecubs on Jul 19, 2017 15:41:43 GMT -6
Suns owner Robert Sarver addresses the team's arena situation, possible joint venue with CoyotesThe Arizona Coyotes are looking for a new arena in the Valley. The Phoenix Suns are in the market for a new venue or an upgrade to their current one. Could old roommates reunite in a brand new home? Last month, Sportsnet's Elliotte Friedman reported the NBA's and NHL's commissioners are working together to help facilitate a new joint arena for the Coyotes and Suns, who shared then-America West Arena from 1996-2003. The Suns have played in that building (now called Talking Stick Resort Arena) since 1992, while the Coyotes relocated to Glendale 14 years ago but are looking for a new home following legal disputes with the City of Glendale. During a press conference Wednesday in which the Suns announced James Jones is the team's new vice president of basketball operations and general manager Ryan McDonough received a contract extension, Suns owner Robert Sarver made it clear: The team needs a new arena or an overhaul to their current one. "We have no choice but to do one of those two because as you know, our arena’s becoming outdated," he said, noting TSR Arena will soon be the NBA's second-oldest active venue. "We have to have an NBA-quality facility. I know that. I think the City of Phoenix knows that. So, we have no choice but to get one of those two things done." When asked whether he's open to a joint venue with the Coyotes, Sarver didn't slam the door on that possibility, but he made it clear that such an arrangement wouldn't work if the Suns simply decide to renovate their current building.
"I’m open to do what’s best for the City of Phoenix and for us, first and foremost. If that happens to be this building, then that’s not an option because of the way this building was built," he said.Regardless of the outcome, Sarver said he hopes to see construction on a new or renovated arena "within the next couple years." In the meantime, he continues to weigh his options, including where the Suns might play if they move out of their current building. "I’m looking at different options here within the Valley. First priority is downtown Phoenix, but if that’s not something the city wants to do, I’ve got to look somewhere else," he said. "We’re getting to that point where we’ve got to start getting something done." www.abc15.com/sports/sports-blogs-local/suns-owner-robert-sarver-addresses-the-teams-arena-situation-possible-joint-venue-with-coyotes
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Post by mikecubs on Jul 19, 2017 15:43:04 GMT -6
Interesting that he didn't rule it out. Many people have insisted that he'd never go for it.
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Post by wolfmannick on Jul 19, 2017 20:05:32 GMT -6
Interesting that he didn't rule it out. Many people have insisted that he'd never go for it. Depends on the deal he gets. Might get a really good arena deal conditional they share the arena with the Coyotes which would work considering the likely hood of the team not being successful downtown as well as the suburbs
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Post by mikecubs on Jul 20, 2017 15:22:28 GMT -6
Now a shared arena is unlikely Phoenix Suns' Robert Sarver says Coyotes-Suns shared site 'highly unlikely'Suns owner Robert Sarver told azcentral sports Wednesday that it’s “highly unlikely” the Suns will pursue a joint basketball/hockey arena with the Arizona Coyotes. In a one-on-one interview after the Suns announced a contract extension for General Manager Ryan McDonough and the hiring of James Jones as vice president of basketball operations, Sarver said his focus is on an upgrade of Talking Stick Resort Arena. “This facility was built for basketball,” he said. Opened in June 1992 as America West Arena, the Suns' downtown home was called US Airways Center from 2006-15. The arena site, which covers 11 acres, underwent a $70 million expansion and improvement project in 2004. Sarver said building a new arena would have “maybe made more sense” four or five years ago when the cost estimate was $450 million to $500 million. The costs now, Sarver said, are “significantly higher.” Thus his focus on upgrading Talking Stick, which soon will be the second-oldest arena in the NBA. “I think it’s the most economically viable alternative for the city and us,” he said. “I like downtown Phoenix. That’s my first preference. I think the NBA is more of an urban game. That’s our demographic.” Sarver added that he’d like to say in downtown Phoenix but that, “if we can’t, we’ll explore other options.” During the news conference Sarver said the Suns “have no choice” but to either modernize Talking Stick Resort Arena or build a new arena. “Our arena is becoming outdated,” he said. “... We have to have an NBA-quality facility. I know that. The city of Phoenix knows that. Hopefully in the next couple of years we can start construction on something.” www.azcentral.com/story/sports/nba/suns/2017/07/19/phoenix-suns-robert-sarver-arena-arizona-coyotes/493056001/
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Post by mikecubs on Oct 5, 2017 4:45:39 GMT -6
Phoenix approves sale of downtown Sheraton for $255 millionThe Phoenix City Council approved the sale of the Sheraton Grand Phoenix downtown hotel Tuesday for $255 million — about $50 million less than what the city owes on it. The buyer, TLG Phoenix, an investment company based in Florida, will receive a $97 million tax break and $13 million to use for renovations. The city spent $350 million to build the 1,000-room hotel, which opened in 2008 to accommodate guests of the newly renovated and expanded Phoenix Convention Center. In December 2015, the City Council voted to put the hotel on the market, hoping to free up money in the city's Sports Facilities Fund. TLG Phoenix has already deposited $100,000 in escrow. Within five days, the company will deposit an additional $4.9 million, with the remainder due at the time of closing. The sale is expected to close Jan. 5. Council wants to 'get out of hotel business' For a majority of the council, the decision to sell was based on a desire to get taxpayers out of the hotel business. "For me, it's time to stop the bleeding," Councilwoman Thelda Williams said. The city learned the hard way during the recession that hotels are not always money-makers. The city spent $47 million to cover operating losses during the downturn. “For me, it's time to stop the bleeding.” Phoenix Councilwoman Thelda Williams But now the hotel is turning a profit. In the past few years, it made $16 million, according to the city. In an interview prior to the vote, Councilman Sal DiCiccio said he doesn't think the city should have built the hotel, "period," but now that the Sheraton is making money, the city should hold onto it for another year or so since the economy is growing, and wait for a better offer. "The public's not aware that it's actually making money," he said. DiCiccio voted against the sale along with Councilman Jim Waring. Councilman Daniel Valenzuela said it was time for the city to hand over hotel management to the professionals before the Sheraton racks up additional expenses on necessary renovations. "I did not vote to get into the hotel business, but tonight I'm voting to get out of the hotel business," he said. In total, the hotel resulted in about a $90 million loss, according to the city: $47 million to cover past debt payments, buy the land and create a hotel operating reserve account. $40 million the city still must pay to its lender for debt on the building. The hotel is expected to sell for $51 million less than what Phoenix owes, but the city expects to have $11 million in leftover hotel profits and reserves to pay off the balance of the loan. Additionally, the city agreed to hand over its hotel replacement fund, which contains $13 million, to help with the $30 million to $40 million in renovations the buyer intends to make. The $97 million tax incentive promised by the city comes in the form of a Government Property Lease Excise Tax, or GPLET — a maneuver that will allow the company to avoid property taxes for 20 years. Instead, the hotel will pay a much reduced tax, called an excise tax, of $2 million, which will primarily benefit schools. Currently, the hotel does not garner any property-tax dollars for Phoenix because it is city-owned. "There is no loss of taxpayer revenue in this case because it’s always been zero (property-tax revenue)," Jeremy Legg, a special-projects manager for the city who is overseeing the sale, told The Republic in August. Waring said his beef with the hotel sale was two-fold. First, he votes against all GPLETs, he said. "I don't think we should be doing this," he said. Additionally, Waring called the offer a "lousy deal" and suggested the city hold out until it can find a better buyer. City Manger Ed Zuercher said TLG Phoenix put forth "the best offer by far." He said the sale price is actually above what the city believes is the fair-market value of the hotel. Lee Pillsbury, head of TLG Phoenix and a well-known lodging investor, said city staff "made a great case as to why we were overpaying." He said his company plans to "change the current trajectory of the hotel," which will result in more people staying in the hotel, more revenue and more employees — all things that will benefit the city. What's next? Once the sale closes, Pillsbury said his team will provide the Sheraton with a major $40 million face-lift. The hotel is approaching 10 years old — mattresses are sagging, television sets are out of date and other amenities need a revamp. He said each room needs about $3,000 of work. Pillsbury is also planning a redesign of the bottom floor that will switch up some of the food and dining elements to create a more vibrant scene. As for the city, the money saved can go toward any purpose approved by the council.
But many speculate that a bulk of the funds will be used for major renovations of Talking Stick Resort Arena, where the Phoenix Suns play.
"(The sale) means that (the Suns) get their arena renovations," DiCiccio said.
The Suns did not return calls for comment. www.azcentral.com/story/news/local/phoenix/2017/10/04/council-approves-sale-sheraton-255-million-tlg-phoenix/718118001/
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wolf357
Alternate Captain "A"
Posts: 557
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Post by wolf357 on Oct 22, 2017 10:24:12 GMT -6
Watching the highlights from last nights game..had to be 99.99% Hawks fans in Glendale last night..Saturday night game vs Chicago 13,777 in Attendance..
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Post by mikecubs on Dec 20, 2017 7:41:51 GMT -6
After threat to move, Arizona Coyotes staying 1 more year in GlendaleThe Arizona Coyotes are giving their fans an early Christmas gift: They will play at least one more season at Gila River Arena. "We are absolutely planning to play next season at Gila River Arena and are focused on building a winning hockey team, positively contributing to our community, and achieving success in all aspects of our business," said Ahron Cohen, the team's chief operating officer told The Arizona Republic. The announcement comes nine months after the team and National Hockey League Commissioner Gary Bettman threatened to move the franchise unless it got a new arena. The team, however, has backed away from such demands and focused on community outreach despite a horrid start on the ice. The one-year extension in Glendale also may quell concerns in the short term about the team moving to Seattle or Houston — cities currently seeking an NHL team. Also, the league appears more interested in putting an expansion team in the Pacific Northwest. The Coyotes had until Dec. 31 to notify AEG, the arena manager, whether the team plans to play elsewhere for the 2018-19 season. If the team does nothing, the lease automatically renews for one more year in Glendale. Cohen noted the Coyotes have an "evergreen lease," meaning it can continually renew annually with AEG. Dale Adams, AEG general manager, said the Coyotes never gave him the impression that they would leave. "I don't know where they would go," Adams said. Arena dispute with Glendale A timeline of the Arizona Coyotes in Glendale The Coyotes and Bettman in March threatened to move the franchise out of Arizona if the Legislature didn't approve $225 million in public financing for a new arena in downtown Phoenix or the East Valley. But the Legislature never passed a funding bill for the Coyotes, and the team's lobbyist, Jim Norton, was indicted on an alleged bribery scheme involving the state Corporation Commission. Brent Stoddard, a Glendale spokesman, said the city has heard nothing regarding a new arena-funding bill for the 2018 Legislature. There have been discussions on social media that the Salt River Pima-Maricopa Indian Community is interested in financially helping the Coyotes with a new arena on tribal land. But Kim Secakuku, a spokeswoman for the tribe, called such discussions a "rumor" and said she had no information regarding an investment by the Salt River Pima-Maricopa Indian Community in the team or a new arena. Glendale invested about $186 million in 2003 to build an arena specifically for the Coyotes. The city then provided the NHL a $50 million subsidy to keep the franchise in Glendale, after former owner Jerry Moyes filed for bankruptcy protection in 2009. The NHL sold the team to a new ownership group, IceArizona, in 2013, and the city provided that group with a $15 million annual subsidy to manage the arena. In 2015, the city terminated the subsidy with the team's owners, who then began threatening to move, saying the team's fan base was in Phoenix and the East Valley. MORE: Glendale: Coyotes, not city, to blame for financial mess The city then hired AEG to manage the arena, paying that organization $5.6 million in fees, with AEG absorbing all arena losses. Stoddard said AEG is bringing non-hockey events such as concerts and sporting events to the arena "like never before," and AEG returned more than $1 million to the city this past fiscal year. "The contract gives them (AEG) a lot of latitude to be world-class arena managers and to bring in as much revenue as they can," Stoddard said. Stoddard added that Glendale would like to see the Coyotes sign a long-term lease to stay in the West Valley. He added city officials have heard Houston and Seattle want a NHL team, but he said the Coyotes relocating to either of those cities is "rumor mill stuff." Coyotes grapple with financial struggles The team, however, is facing serious financial challenges. Majority owner Andrew Barroway bought out the minority owners this past summer in a highly leveraged deal in which he took on more than $200 million in debt. MORE: Andrew Barroway reaffirms commitment to keeping Coyotes in Arizona Forbes, a business magazine that annually determines the worth of professional sports teams, recently valued the Coyotes at $300 million — the least valuable franchise in the 31-team NHL. The magazine noted the team lost at least $19 million last season, which is less than what prior owners have publicly said the team lost. And Forbes stated the team's debt ratio was 83 percent, meaning the franchise has very little liquidity or room to borrow money. Before the buyout, Barroway and minority owners from Canada often had to make millions of dollars in cash calls to cover the team’s operating losses. Among his first duties as sole owner, Barroway infuriated fans by cutting longtime captain Shane Doan and parting ways with Coach Dave Tippett. MORE: Doan retires | Doan lauded for actions on, off ice | Tippett felt time was right to move on Things got worse on the ice as the season began. The Coyotes nearly set a league record for futility by starting the season 0-10-1, and they are currently the worst team in the NHL at 7-23-5. Home attendance also is near the bottom for the league. Barroway, meanwhile, has been frugal as the Coyotes have the league’s lowest payroll of $54.8 million, according to the National Hockey League Players’ Association. www.azcentral.com/story/news/local/glendale/2017/12/19/arizona-coyotes-staying-1-more-year-glendale-gila-river-arena/963379001/
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Post by mikecubs on Dec 20, 2017 7:46:42 GMT -6
LOL You have a MASSIVE city like Houston(that blows Phoenix away population wise/corporately) open with an owner interested in hockey with a modern DOWNTOWN arena. You have Quebec with a modern arena and rabid fan base. Yet both are insufficient and the show must go on in Glendale.
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