Breaking Sports

Thursday, March 03, 2005

nhl- Additonal Info on Takeover Proposal

from the torontostar, A powerful Wall Street buyout firm and an upstart sports advisory company have made a dramatic joint proposal to buy all of the NHL's 30 teams for as much as $3.5 billion (U.S.).
The NHL, which because of its ongoing player lockout recently became the first major North American pro sports league to cancel an entire season, has said its teams have lost a collective $500 million (U.S.) over the past two seasons.
It's unclear whether many of the league's owners, especially those with teams in large markets like Toronto, Boston and New York, would accept the offer.
Several in attendance said just one of the owners there asked a question of Bain and Game Plan — how the $3.5 billion pot might be divided between owners?
"They told us they had a formula to compensate each owner based on the revenue and assets and size of market of each team," said one owner who attended the meeting.
"I'm not sure how serious you can take the offer because it's an all-or-nothing deal. You need all 30 owners on board to make it work."
If the owners ultimately accepted an offer of $3.5 billion that would put the average franchise value at about $117 million, although large-market teams like the Maple Leafs would be worth far more.