Terry Pegula buying the Buffalo Sabres discussion

[Kristian]

I don't know the details about what may be going down with Sabres ownership. If Pegula buys the Sabres, will he have complete ownership? Will Larry Quinn be out of Buffalo? If Pegula's buying the Sabres gets rid of Quinn, I'd be beyond excited.

 

Unless Quinn owns something like 45% of the Sabres, he's gone if a new owner wants him gone.

 

Just because you're a part owner of something, it doesn't mean you automatically have a guaranteed job there.

 

That said, I doubt Quinn's share of the team wouldn't be a part of a deal, should one be in the works.

 

The man loves money more almost as much as he loves himself, there's no way he's turning down a good offer for something he knows he has no use for anyway, if he's fired.

 

And I have to believe Larry getting fired would only be a matter of time for any new owner, if not part of the takeover.

[That Aud Smell]

Apparently, Terry Pegula is the guy on the WGR Whiner Line that sings the Mr Softy songs.

nice.

 

Unless the guy pulls a Golisano and writes the check to buy the team and then disappears and has nothing to do with it.

given his profile, i can't see that happening with this guy.

 

Unless Quinn owns something like 45% of the Sabres, he's gone if a new owner wants him gone.

 

Just because you're a part owner of something, it doesn't mean you automatically have a guaranteed job there.

 

And I have to believe Larry getting fired would only be a matter of time for any new owner, if not part of the takeover.

quinn is the team's managing partner. the entity that owns and controls the team is a limited liability company (llc) -- hockey wny llc or something. llc's are owned by members, who are sometimes referred to as partners for the purpose of dealing with the outside world. there is usually one member who is the managing member. in this case, it seems clear that the team's managing member/partner is quinn. the rights and obligations of an llc's members are spelled out in what's called an operating agreement. in theory, if pegula were to buy only golisano's stake in the team -- a stake that would obviously give him a controlling interest in the team (and, i would guess, that stake is in excess of 2/3, and probably equal to or greater than 3/4) -- then he would succeed to golisano's rights under the llc's operating agreement. so, in that event, the question of whether or not pegula would have the right to relieve quinn of his role as managing partner in connection with the purchase of golisano's stake would be dictated by the terms of the operating agreement. that said, and assuming quinn isn't selling his stake as well, any sale here would likely be conditioned on a slew of changes to the operating agreement, which changes would likely include a change to the provision regarding the llc's managing member.

 

oh, and, uhm, go sabres.

[Claude_Verret]

I don't know the details about what may be going down with Sabres ownership. If Pegula buys the Sabres, will he have complete ownership? Will Larry Quinn be out of Buffalo? If Pegula's buying the Sabres gets rid of Quinn, I'd be beyond excited.

 

I agree this would be on of the most exciting parts of a potential sale. However, and take this for what it's worth, I have a good friend who has contacts inside the Sabres organization and he has been told that LQ retaining a piece of ownership and a role with the team is part of the negotiations in the pending sale. Time will tell.

[Kristian]

 

 

 

quinn is the team's managing partner. the entity that owns and controls the team is a limited liability company (llc) -- hockey wny llc or something. llc's are owned by members, who are sometimes referred to as partners for the purpose of dealing with the outside world. there is usually one member who is the managing member. in this case, it seems clear that the team's managing member/partner is quinn. the rights and obligations of an llc's members are spelled out in what's called an operating agreement. in theory, if pegula were to buy only golisano's stake in the team -- a stake that would obviously give him a controlling interest in the team (and, i would guess, that stake is in excess of 2/3, and probably equal to or greater than 3/4) -- then he would succeed to golisano's rights under the llc's operating agreement. so, in that event, the question of whether or not pegula would have the right to relieve quinn of his role as managing partner in connection with the purchase of golisano's stake would be dictated by the terms of the operating agreement. that said, and assuming quinn isn't selling his stake as well, any sale here would likely be conditioned on a slew of changes to the operating agreement, which changes would likely include a change to the provision regarding the llc's managing member.

 

oh, and, uhm, go sabres.

 

I would assume there's still a board somewhere, in which TG as the majority owner would have the majority of votes? Meaning if TG owns 75% of the team (I expect he owns more than that), he most likely wouldn't have any problems getting the boards approval to dismiss Quinn, should he wish to.

[CallawaySabres]

Good thing his contract is up at the end of the season.

 

My soul must be dead because this news barely has me uplifted. I just think after so much disappointment as a fan and in my life, I just can't bring myself to get excited about something so undefined.

 

Trust me, it's dead.....this is the silver bullet that Buffalo has waited for since the inception of the Sabres

[Weave]

I don't know if it was posted yet but supposedly Pegula was/is in NYC to visit the league offices.

 

Man, this is the most exciting thing to happen to this team since.... Tommy G was announced as the buyer of the Sabres. :o :unsure: :blink: :doh:

 

wait.. what?

[Ghost of Dwight Drane]

I agree this would be on of the most exciting parts of a potential sale. However, and take this for what it's worth, I have a good friend who has contacts inside the Sabres organization and he has been told that LQ retaining a piece of ownership and a role with the team is part of the negotiations in the pending sale. Time will tell.

 

If Quinn turns into Russ Brandon and focuses on marketing and Regier gets canned, I can accept that. If Quinn gets canned and Regier gets one year with no handcuffs in free agency, I can handle that. If we have status quo with another person writing the checks, I am done.

 

I will give the guy until next year to figure things out, but I don't think a Christian man like Pegula needs to make a deal with the antichrist. He really needs to understand the dynamics in play here.

[Patty16]

I think we all need to take a deep breath until something more concrete comes to light. I am as excited as all of you but as of right now i havent seen something that makes me think this deal is likely.

[Claude_Verret]

If Quinn turns into Russ Brandon and focuses on marketing and Regier gets canned, I can accept that. If Quinn gets canned and Regier gets one year with no handcuffs in free agency, I can handle that. If we have status quo with another person writing the checks, I am done.

 

I will give the guy until next year to figure things out, but I don't think a Christian man like Pegula needs to make a deal with the antichrist. He really needs to understand the dynamics in play here.

 

I specifically asked if his role would remain the same but he did not have an answer for that. I too could deal with LQ remaining a part of the team as long as he has nothing to do with on ice running of the Sabres, but if he remains in his current role then this deal loses almost all of its luster.

[Taro T]

I agree this would be on of the most exciting parts of a potential sale. However, and take this for what it's worth, I have a good friend who has contacts inside the Sabres organization and he has been told that LQ retaining a piece of ownership and a role with the team is part of the negotiations in the pending sale. Time will tell.

If all this happens, I'd have very little doubt that Quinn would like to stay on as part owner. I can see the new guy keeping him on in the current capacity for a short time. I just don't see him keeping LQ in the managing partner role moving beyond the short term. I'd expect LQ to have more of a ceremonial title and still get to have an office at the Mmarena and the perks that go w/ it.

 

TG strikes me as someone who is very loyal, and I expect that he'd like to find a way to let the guys that did the grunt work to put him in this position to hold their pieces if that's what they want and if it doesn't cause the potential sale to blow up.

 

All that stated, I don't see dropping $150MM for a shiny new toy and stepping back while telling somebody else "why don't you play w/ my new toy, I'll just sit back and watch."

[That Aud Smell]

I would assume there's still a board somewhere, in which TG as the majority owner would have the majority of votes? Meaning if TG owns 75% of the team (I expect he owns more than that), he most likely wouldn't have any problems getting the boards approval to dismiss Quinn, should he wish to.

llc's don't have boards of directors, and i'm 99.9% sure there is no board for the sabres (ever heard of anyone being referred to as a director on the sabres' board? i haven't). there's an operating agreement that governs hockey wny llc and that spells out how quinn can be relieved of his role as managing partner. there's no telling what that agreement says.

 

all that said, if pegula is buying the team, we can be assured that the matter of quinn's ownership stake/management role is a piece of the puzzle.

 

Man, this is the most exciting thing to happen to this team since.... Tommy G was announced as the buyer of the Sabres. :o :unsure: :blink: :doh:

 

wait.. what?

+1.

[CallawaySabres]

Atlanta just won't lose and the Bruins still have 3 games in hand. Reality is setting in that the playoffs probably won't happen without a 6 or 7 game win streak. I think it is time to play Miller into the ground and hope he resumes status of last year. On the flip side, there are probably going to be a lot of happy people if they do miss the playoffs as that will all but seal the fate of Quinn and Regier.....(with new ownership)

 

Win/Win, I suppose....

[nfreeman]

If all this happens, I'd have very little doubt that Quinn would like to stay on as part owner. I can see the new guy keeping him on in the current capacity for a short time. I just don't see him keeping LQ in the managing partner role moving beyond the short term. I'd expect LQ to have more of a ceremonial title and still get to have an office at the Mmarena and the perks that go w/ it.

 

TG strikes me as someone who is very loyal, and I expect that he'd like to find a way to let the guys that did the grunt work to put him in this position to hold their pieces if that's what they want and if it doesn't cause the potential sale to blow up.

 

All that stated, I don't see dropping $150MM for a shiny new toy and stepping back while telling somebody else "why don't you play w/ my new toy, I'll just sit back and watch."

This sounds about right. Pegula sounds like a hockey lover. It doesn't make sense that he would allow LQ to interfere with hockey decisions. I can see Pegula keeping LQ on for marketing/non-hockey operational stuff though.

 

If the sale happens, I will be very interested to see what happens with Darcy and Lindy. One assumes that Pegula will meet with them directly and try to get a sense of whether DR has been able to do things the way he's wanted to, or whether he's been handcuffed on trades, FAs, giving contracts to LQ's buddy's kid, etc.

[Ghost of Dwight Drane]

I specifically asked if his role would remain the same but he did not have an answer for that. I too could deal with LQ remaining a part of the team as long as he has nothing to do with on ice running of the Sabres, but if he remains in his current role then this deal loses almost all of its luster.

 

Yes.

 

If Pegula comes in and spends to the cap, and brings in hockey people to make decisions, then Quinn can focus on Plutonium Pricing of games and let the big boys make the hockey moves. Wow...if that were the case, Quinn actually wouldn't have to lie through his teeth every day.

 

The Sabres fans don't need to get Obama'd here.

[Eleven]

nice.

 

 

given his profile, i can't see that happening with this guy.

 

 

quinn is the team's managing partner. the entity that owns and controls the team is a limited liability company (llc) -- hockey wny llc or something. llc's are owned by members, who are sometimes referred to as partners for the purpose of dealing with the outside world. there is usually one member who is the managing member. in this case, it seems clear that the team's managing member/partner is quinn. the rights and obligations of an llc's members are spelled out in what's called an operating agreement. in theory, if pegula were to buy only golisano's stake in the team -- a stake that would obviously give him a controlling interest in the team (and, i would guess, that stake is in excess of 2/3, and probably equal to or greater than 3/4) -- then he would succeed to golisano's rights under the llc's operating agreement. so, in that event, the question of whether or not pegula would have the right to relieve quinn of his role as managing partner in connection with the purchase of golisano's stake would be dictated by the terms of the operating agreement. that said, and assuming quinn isn't selling his stake as well, any sale here would likely be conditioned on a slew of changes to the operating agreement, which changes would likely include a change to the provision regarding the llc's managing member.

 

oh, and, uhm, go sabres.

 

The team is owned by Niagara Frontier Hockey, LP, a limited partnership.

 

In any event, while I haven't seen the documents, I would be shocked if either the partnership agreement or the ownership agreement guaranteed that Quinn would be the managing partner or the manager of the LLC. I would be even more shocked if they weren't structured so that an owner with Golisano's overwhelming majority interest couldn't amend the documents at will.

[JoDo]

Don't be so sure Darcy would be gone with a new owner. Realistically, I'm confident the root of the "status quo" problem with the Sabres lies mainly with Golisano. I don't resent him, he did us a huge favor by saving the team but I have a feeling he's tied the hands of DR. On the other hand, as I write I do realize new owners tend to want their "people" in place. So I guess we'll see. I am so excited though at the prospect of having an owner who wants to pursue a winning team.

[korab rules]

I think we all need to take a deep breath until something more concrete comes to light. I am as excited as all of you but as of right now i havent seen something that makes me think this deal is likely.

 

If we get confirmation of Pegula in NYC/signing of LOI/meeting with Bettman its a done deal.

 

As to Quinn, the purchase of a 150-170 million entity will not be scuttled by the future employment of a minority owner. Quinn will only get what Pegula is willing to give; if Pegula balks, TG will throw Quinn under the bus in a heart beat. We can speculate all day as to what the operating agreements say, but we are all just throwing darts in the dark. The agreements say what the agreements say, and what Pegula can and can't do with Quinn depends on what the agreements say.

 

I think it is likely that Quinn will stay on in his current role in the short term to allow Pegula to make up his own mind. Same goes for Darcy and Ruff. The aggression with which free agents are pursued and the tolerance for under performing players may change immediately, though.

[korab rules]

The team is owned by Niagara Frontier Hockey, LP, a limited partnership.

 

In any event, while I haven't seen the documents, I would be shocked if either the partnership agreement or the ownership agreement guaranteed that Quinn would be the managing partner or the manager of the LLC. I would be even more shocked if they weren't structured so that an owner with Golisano's overwhelming majority interest couldn't amend the documents at will.

 

This.

[Taro T]

The team is owned by Niagara Frontier Hockey, LP, a limited partnership Hockey Western New York, LLC, a limited liability company.

 

In any event, while I haven't seen the documents, I would be shocked if either the partnership agreement or the ownership agreement guaranteed that Quinn would be the managing partner or the manager of the LLC. I would be even more shocked if they weren't structured so that an owner with Golisano's overwhelming majority interest couldn't amend the documents at will.

Fixed it for you.

[Stoner]

Not at all -- even if the deal happens, there is a very real likelihood that his ownership doesn't turn out to be any better than TG's, who, when all is said and done, has been a pretty good owner.

 

Wow! This team has really done a number on you. I hope we can get you back from the abyss.

[nfreeman]

In any event, while I haven't seen the documents, I would be shocked if either the partnership agreement or the ownership agreement guaranteed that Quinn would be the managing partner or the manager of the LLC. I would be even more shocked if they weren't structured so that an owner with Golisano's overwhelming majority interest couldn't amend the documents at will.

+1. While the LLC/LP Agreement probably includes some baseline protections for LQ's interests, it would be pretty surprising if TG couldn't replace him as the manager.

 

If we get confirmation of Pegula in NYC/signing of LOI/meeting with Bettman its a done deal.

 

As to Quinn, the purchase of a 150-170 million entity will not be scuttled by the future employment of a minority owner. Quinn will only get what Pegula is willing to give; if Pegula balks, TG will throw Quinn under the bus in a heart beat. We can speculate all day as to what the operating agreements say, but we are all just throwing darts in the dark. The agreements say what the agreements say, and what Pegula can and can't do with Quinn depends on what the agreements say.

 

I think it is likely that Quinn will stay on in his current role in the short term to allow Pegula to make up his own mind. Same goes for Darcy and Ruff. The aggression with which free agents are pursued and the tolerance for under performing players may change immediately, though.

I agree with both of the bolded statements. I would just add though that if the current agreements give LQ more than Pegula is willing to give him, amending and/or waiving those LQ rights will be part of the negotiation.

 

Since everyone involved is a pretty savvy and experienced business person, I would expect that (i) TG has the right to force LQ to sell and (ii) LQ has an employment agreement that guarantees him a certain salary and benefits for a period of time, plus severance if he is canned and possibly a bonus that is triggered if the team is sold. However, as you point out, this is just speculation and we don't really know.

[nfreeman]

Wow! This team has really done a number on you. I hope we can get you back from the abyss.

I think you are overestimating the quality of the other NHL owners.

[weehawk]

New ownership can only be a good thing at this point. TG has given up and wont spend any money. I'd much rather see a new GM then let DR have a go at it with more freedom. Keep Lindy though. If anyone has been screwed over by the TG/DR/LQ regime, it's Lindy.

[nucci]

Regier did a good job when the Rigas were in jail. Maybe TG and LQ are holding him back.

[Patty16]

If we get confirmation of Pegula in NYC/signing of LOI/meeting with Bettman its a done deal.

 

As to Quinn, the purchase of a 150-170 million entity will not be scuttled by the future employment of a minority owner. Quinn will only get what Pegula is willing to give; if Pegula balks, TG will throw Quinn under the bus in a heart beat. We can speculate all day as to what the operating agreements say, but we are all just throwing darts in the dark. The agreements say what the agreements say, and what Pegula can and can't do with Quinn depends on what the agreements say.

 

I think it is likely that Quinn will stay on in his current role in the short term to allow Pegula to make up his own mind. Same goes for Darcy and Ruff. The aggression with which free agents are pursued and the tolerance for under performing players may change immediately, though.

 

 

Yes, we need some confirmation first.

 

In any event, i dont think a new owner brings in drastic changes right off the bat. THere arent any FAs right now to sign.

 

The only real impact will be authorizing trades which take more salary in return. He could also beef up the scouting dept. But recent players like the Tylers make me think they are doing ok.