Breaking Sports

Wednesday, June 08, 2005

nhl- Anothe option from Bain Capital

from Reuters, An outside bid to buy the National Hockey League allows team owners the chance to maintain a stake in the league, according to people close to the deal.
The provision is added incentive for team owners mulling a bid by private equity firm Bain Capital and investment firm Game Plan International to buy the 30-team league for $4.3 billion.
A spokesman for the NHL declined to comment on the deal on Wednesday.
Bain and Game Plan's offer seemed far fetched at first, with details scant and many league followers doubting that all 30 owners would agree to sell.
But stalled player contract negotiations, which forced the league to cancel the 2004-2005 season, remain at a standstill, fueling frustration levels between players and owners.
Add to that the ability to retain an equity stake in the league, and Bain and Game Plan's buyout offer may not appear so outlandish to owners reluctant to sell.
"Everyday a deal is not reached, more and more frustration builds up. I suspect there will come a time when the owners will throw up their hands and say 'we've explored all the options and they're all bad,"' said Marc Ganis, president of Sportscorp Ltd., a Chicago-based sports advisory firm. "Bain is offering a very interesting and, perhaps, very attractive offer."
The equity provision says team owners can apply a portion of their team's agreed upon value to a pro rata share of the equity of the new entity under Bain and Game Plan, according to people familiar with the deal.
That in turn would provide middle-ground for owners unwilling to sell their team outright.
In short, an owner has the option to sell and take the cash, or take a portion of the cash and invest it into the new on...