Greenberg Is Said to Near $500 Million Deal for Hurricanes

[mikecubs]

Greenberg Is Said to Near $500 Million Deal for NHL's Hurricanes

Chuck Greenberg, once part-owner and CEO of the Texas Rangers, is close to completing an agreement to buy the National Hockey League’s Carolina Hurricanes for about $500 million, according to people familiar with the deal.

The team will stay in North Carolina. Greenberg will seek to add local investors to the ownership group and plans to split his time between Raleigh and Dallas, said the people, who asked for anonymity because the negotiations are private.

The nearly $500 million price tag is roughly the same as what Bill Foley recently paid to bring an NHL expansion team to Las Vegas. It’s also more than double Forbes’ recent estimate of the team’s value -- $230 million, least among U.S. hockey teams.

The club has made the playoffs only once since it won the Stanley Cup in 2006. The Hurricanes averaged a league-worst 11,776 fans last season, with a record of 36-31-15.

Allen & Co., which has been overseeing the sale process for the team, didn’t immediately return phone calls seeking comment. Team owner Peter Karmanos said in January that he was open to selling the franchise he’s owned since 1994, when it was playing in Hartford, Connecticut, as the Whalers.

Greenberg sold his stake in the Rangers in 2011. He still owns a trio of minor-league baseball franchises. He also worked closely with billionaire Ron Burkle and hockey icon Mario Lemieux as they acquired the Pittsburgh Penguins and built a new arena.

www.bloomberg.com/news/articles/2017-07-13/greenberg-is-said-to-near-500-million-deal-for-nhl-s-hurricanes

[calgaryflames]

www.forbes.com/sites/mikeozanian/2017/07/14/carolina-hurricanes-500-million-sale-is-fake-news/#255a6f046090

Carolina Hurricanes $500 Million Sale Is Fake News

[Bruinsfan]

Is Greenberg real or a Hulsizer?

[mikecubs]

Good to see you again Bruinsfan!

The sale is not done but Greenberg has owned a bunch of minor league teams and was CEO of the Texas Rangers at one point. This is a legit guy. The sale includes at least $100M in debt. If the sale is complete Greenberg is going to bring on local ownership too. I just worry at the last minute Karmanos will make an insane request like pay $600M and let me still run the team even though you now own it.

[mikecubs]

Here is an update from August 1 on what is going on

Canes can be had for $500 million, owner says, but don’t delay – the price may rise

Peter Karmanos Jr. said Tuesday he is in the process of selling the Carolina Hurricanes, a franchise he has owned since 1994, and that the asking price is about $500 million – for now.

Karmanos said a term sheet is in place with a potential ownership group headed by Chuck Greenberg, a sports attorney, former CEO of the Texas Rangers and minor-league baseball owner. But he cautioned, “There is no purchase agreement.”


Until Tuesday, Karmanos had not spoken publicly or confirmed that Greenberg’s group was seeking to buy the Hurricanes for about $500 million. Bloomberg News first reported the offer from Greenberg on July 13, and a Hurricanes spokesman released a statement later that day that said Karmanos had an offer and was considering his options, including retaining ownership of the team.


Karmanos said Tuesday that 11 or 12 groups “at one time or another” had shown interest in buying the team, which he moved to Raleigh in 1997 from Hartford, Conn., and renamed the Carolina Hurricanes. He said he liked Greenberg and has given Greenberg the time needed to finalize a ownership team.

“Once he’s done that we’re going to examine his offer and see if it cuts the mustard,” Karmanos said. “He was supposed to be done a while ago. I like working with Chuck ... (but) if we get a few more weeks down the road and he can’t raise enough money, I’m going to tell him sayonara.”

Karmanos said the final price may “shake out” between $450 million and $500 million. He did not say how much assumed debt would be a part of the transaction – it’s thought to be about $100 million – but said the deal would not include the Florida Everblades, an ECHL team owned by Karmanos, and the Florida arena.

“If I have to go back, the price is going up – maybe 550, maybe 600 (million dollars),” Karmanos said. “The team is on the rise. If I have to wait through this season and we have a magnificent year and we again run the team on a positive, even-up (financial) basis like we did last year, the value will increase significantly.”

Hurricanes president Don Waddell said the 2016-17 season was the first time the team finished in the black financially without making the Stanley Cup playoffs. Waddell said season-ticket renewals from last year were at 89 percent and more than 500 new season-tickets had been sold – selling points for a potential buyer.

“Our sponsorship revenue is higher than it’s ever been, even in spite of the fact we haven’t been in the playoffs in (eight) years,” Karmanos said.

Greenberg’s group could include many of the investment partners that Karmanos has incorporated into team ownership in the past six years while also bringing in others from the area. Greenberg, who has met in Raleigh with several potential investors in the past week, could not be reached Tuesday.

Karmanos praised Raleigh and the Triangle as a fast-growing market with high per-capita income. He praised PNC Arena, the Hurricanes’ arena lease and cited the good working relationship the team has had with the Centennial Authority, the arena landlord.

“My problem is I’m 74 years old and I have four little kids at home, which changes the dynamic enormously,” he said. “I don’t want to leave my family in a really tough spot, by having this huge liquid asset and forcing a fire sale at that point in time. I’m trying to do what I think is best for the team and for my family, and for my investors.”

Both Karmanos and Greenberg have indicated that a sale, if completed, would keep the team in Raleigh. Karmanos said that has never been in doubt, noting the league is committed to having a team in the Triangle.

“That team’s not moving, no matter who owns it,” he said.

Karmanos said he is excited about the team’s potential for the upcoming season. He said general manager Ron Francis deserves the accolades he has received in NHL circles for his rebuild of the team through the draft and player development, and the offseason moves this year that included the acquisition of goalie Scott Darling and signing of free-agent forward Justin Williams, a member of the Canes’ 2006 Stanley Cup champions.

“If Darling has just an average season, and I think he’s going to have one better than that, we will be a playoff team,” Karmanos said.

Regardless of the new buyer, Karmanos said he would like to remain involved with the team, at least in an advisory role. He’s in the Hockey Hall of Fame and U.S. Hockey Hall of Fame and believes his expertise as a longtime NHL owner and Stanley Cup winner would be an asset.

“I’ve done enough deals, bought enough companies, to understand when you sell your company, you sell your company,” Karmanos said. “If you sell your team, you sell your team. I would just like to hang around the edges, and help them when they need help and still get my name on the Stanley Cups if we win it. But if I’ve sold the team I’ve sold the team.”

www.newsobserver.com/sports/nhl/carolina-hurricanes/article164782287.html

[mikecubs]

4 ways a new owner could improve the team/market. Read number 2!

www.newsobserver.com/sports/spt-columns-blogs/luke-decock/article161443698.html

[rainmanrh]

There is no way that team is worth 500 million in it's current market.

[mikecubs]

Aug 14, 2017 15:33:52 GMT -6 rainmanrh said:

There is no way that team is worth 500 million in it's current market.

The $500M counts $100M in debt plus they may have fudged the $500M a bit. But keep in mind the Canadian TV deal and revenue sharing. Plus this isn't just for hockey, the new owner gets the arena lease/concerts. Unlike Glendale there is no other modern arena in the area so they are getting good concert $$$.

The new owner looks at it like this. There are over 3M people within a 65 mile drive. The area is one of the fastest growing areas. There is no other pro sports competition and there probably never will be(Charlotte has NFL and NBA). The team made a profit despite 8 straight losing years with an odd/loser owner who's done almost 0 to promote/grow the game. Imagine if I grow the game at a grass roots level and occasionally win plus there are a crap load of more people coming.

I think the Canes will be another Nashville in time. One of the biggest problems with the NHL is they don't understand the concept of market over-saturation (see Phoenix or 3 NHL teams in New York). This is the type of market the NHL absolutely should stick with but have good ownership.

[rainmanrh]

Aug 14, 2017 22:33:02 GMT -6 mikecubs said:

Aug 14, 2017 15:33:52 GMT -6 rainmanrh said:

There is no way that team is worth 500 million in it's current market.

The $500M counts $100M in debt plus they may have fudged the $500M a bit. But keep in mind the Canadian TV deal and revenue sharing. Plus this isn't just for hockey, the new owner gets the arena lease/concerts. Unlike Glendale there is no other modern arena in the area so they are getting good concert $$$.

The new owner looks at it like this. There are over 3M people within a 65 mile drive. The area is one of the fastest growing areas. There is no other pro sports competition and there probably never will be(Charlotte has NFL and NBA). The team made a profit despite 8 straight losing years with an odd/loser owner who's done almost 0 to promote/grow the game. Imagine if I grow the game at a grass roots level and occasionally win plus there are a crap load of more people coming.

I think the Canes will be another Nashville in time. One of the biggest problems with the NHL is they don't understand the concept of market over-saturation (see Phoenix or 3 NHL teams in New York). This is the type of market the NHL absolutely should stick with but have good ownership.

Thanks for the details. It still seems like a pretty steep price, although the ROI can be faster if their arena schedule is full.

[Deleted]

Aug 14, 2017 11:57:18 GMT -6 mikecubs said:

Good to see you again Bruinsfan!

The sale is not done but Greenberg has owned a bunch of minor league teams and was CEO of the Texas Rangers at one point. This is a legit guy. The sale includes at least $100M in debt. If the sale is complete Greenberg is going to bring on local ownership too. I just worry at the last minute Karmanos will make an insane request like pay $600M and let me still run the team even though you now own it.

I heard that was why the original Jets left. Spirit of Manitoba had a deal in place in 1995, but Shankerow insisted on running the team, even though he was only going to be a minority owner, with a very small % of the team retained.

[Deleted]

Aug 14, 2017 22:33:02 GMT -6 mikecubs said:

Aug 14, 2017 15:33:52 GMT -6 rainmanrh said:

There is no way that team is worth 500 million in it's current market.

The $500M counts $100M in debt plus they may have fudged the $500M a bit. But keep in mind the Canadian TV deal and revenue sharing. Plus this isn't just for hockey, the new owner gets the arena lease/concerts. Unlike Glendale there is no other modern arena in the area so they are getting good concert $$$.

The new owner looks at it like this. There are over 3M people within a 65 mile drive. The area is one of the fastest growing areas. There is no other pro sports competition and there probably never will be(Charlotte has NFL and NBA). The team made a profit despite 8 straight losing years with an odd/loser owner who's done almost 0 to promote/grow the game. Imagine if I grow the game at a grass roots level and occasionally win plus there are a crap load of more people coming.

I think the Canes will be another Nashville in time. One of the biggest problems with the NHL is they don't understand the concept of market over-saturation (see Phoenix or 3 NHL teams in New York). This is the type of market the NHL absolutely should stick with but have good ownership.

The problem with this is unless the arena is in a densely populated area, people will be reluctant about driving an hour to watch games, especially weekday games. People from Raleigh will come to games, but i really wonder how many fans in the Durham area buy tickets, considering it's relative far from the arena.

[mikecubs]

Less than Raleigh but Durham is only a 23 min drive to the arena. Main point is no competition and a legit guy actually wants to buy them instead of a "Balkin" or Edge Ice Clowns.

[mikecubs]

Aug 16, 2017 18:14:09 GMT -6 @hannujarvenpaa said:

Aug 14, 2017 11:57:18 GMT -6 mikecubs said:

Good to see you again Bruinsfan!

The sale is not done but Greenberg has owned a bunch of minor league teams and was CEO of the Texas Rangers at one point. This is a legit guy. The sale includes at least $100M in debt. If the sale is complete Greenberg is going to bring on local ownership too. I just worry at the last minute Karmanos will make an insane request like pay $600M and let me still run the team even though you now own it.

I heard that was why the original Jets left. Spirit of Manitoba had a deal in place in 1995, but Shankerow insisted on running the team, even though he was only going to be a minority owner, with a very small % of the team retained.

Did not know that. No business man would agree to something like this.

[Deleted]

It was unfortunate. Houston seems to be in the running, so if the new owner does not turn thing around, I cannot imagine him staying in Raleigh. Houston is a way better fit. It also would allow the NHL to place a team in Quebec to balance out the Conferences.

[mikecubs]

Aug 17, 2017 7:09:23 GMT -6 @hannujarvenpaa said:

It was unfortunate. Houston seems to be in the running, so if the new owner does not turn thing around, I cannot imagine him staying in Raleigh. Houston is a way better fit. It also would allow the NHL to place a team in Quebec to balance out the Conferences.

They have a lease until 2024 and made a profit last year in-spite of the attendance/Karmanos doing 0 to grow the game. And that is before we even count concerts.

We have no clue who the new Houston Rockets owner will be yet and if he wants hockey(he may view it as minor league with head injury risks and want the concerts like Alexander). I'm all for Houston and yes it would be better than Raleigh but I want BOTH(along with Quebec).

I doubt the NHL would be smart enough to go to Houston. The NHL BADLY wants Key Arena since it's such a minor league option.

(FYI Seattle's mayor who is pushing the Key Arena renovation is in major trouble for molesting his foster child.)

www.seattletimes.com/seattle-news/times-watchdog/mayor-ed-murray-sexually-abused-foster-son-child-welfare-investigator-found-in-1984/

I think once the Key arena renovation is pushed through the following will happen.

1. NHL announces Seattle is getting team 32

2. Reject Quebec, Houston at the Seattle press conference

3. Take his picture with the mayor with that dump Key Arena as a backdrop with a MASSIVE smile on his face after the press conference and thinking to himself, woooohooo this is the ultimate, I rejected 2 great markets and with 2 modern arenas in Houston and Quebec that were 100% publicly funded in favor of 1962 failed dump with no mass transit that is being privately renovated. And as a bonus I get to take my pic with this great mayor! This is the highlight of my career as commissioner!