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Terry Pegula buying the Buffalo Sabres discussion

\GoBillsInDallas/

By \GoBillsInDallas/
in The Aud Club

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Taro T Hall of Famer

Taro T

Posted
Posted

That would be accurate. Anyone buying Tom G's stake, would become the owner. Quinn's status as minority owner wouldn't change. The big question is whether any new owner would allow Quinn to continue meddling.

It'll definitely be interesting to see how this one plays out. TG was pretty clear up front that he had no prior interest / history w/ hockey and that his primary interest in buying the Sabres was to keep it in WNY. (Of course, the potential to have the franchise be worth significantly more coming out of bankruptcy than what he'd have to put up was NEVER part of the consideration. /sarcasm)

 

So an owner with ties to WNY should be very appealing to TG. (The possibilities of franchise values taking a bit of a hit as we approach the end of the current CBA along with the 'Bush tax cuts' expiring some time between 1/1/11 and 1/1/13 also could spur on a sale.)

 

Whether Pegula takes sole ownership of the team or allows DiPofi and Quinn to stay on would also be interesting. I'd expect that their stakes are small enough that Pegula wouldn't have a problem with them holding their pieces of the pie. If they stay on, the question becomes does Pegula have the time to take on Quinn's role as the 'managing owner?' He'd clearly have the authority to take that role if he wants it. I'd expect he'd take it on (what fan wouldn't want to be in the board of governor's meeting?), which would, at least initially, lead to much rejoicing. (Remember, the staff at the Aud were reported to have been singing 'ding, ######, the witch is dead' when Dougie Moss and his girlfriend were shown the door ushering Mr. Quinn in the 1st time; just because you get rid of someone that really should be gone doesn't mean necessarily that you'll get an upgrade on the next go-round. Although bringing someone in that doesn't have a history of poor decision making at least gives you the potential for an upgrade.)

 

Would he put one of his 'inner circle' into DiPofi's job? DiPofi seems to be doing well and I don't see a glaring reason to punt him, but when new people take over they oftentimes want the people they've built up a history with in key roles.

 

If he does take over 'day to day' operations, how much will he want to put his own stamp onto things? Will he be a Dan Snyder (of Redskins infamy) who has no real clue but likes to be forefront or will he be more of a Bob Kraft (of Cheatriots fame) that puts the money up but lets the football people do what they deem best? Ted Leonsis kept George McPhee and he seems to have gotten out of his way since they decided to rebuild in the early '00's, but he was the impetus to getting and overpaying Jagr. (So, he was meddling early on AND kept the existing GM; quite an interesting combo.)

 

There is no guarantee that Darcy would necessarily be punted if TG sells. (This is especially true if LQ maintains an ownership stake.) If Darcy stayed, but a new owner told him that the Sabres WILL be in the market for 1-2 'big name' free agents; that might not be a bad thing. The Sabres seem to be 1-2 pieces away from making a legit push towards the top (a #1 center being 1st on the list, my preferred #2 item being a 2nd line winger); maybe having the conservative GM combined with a deep-pocketed hockey loving owner could be the combo to make it happen. Not sure who's out there currently that he'd want to bring in if he were to sack DR, but I'm sure there are a few available that could get the job done.

 

Either way, the thought of having a guy with local ties, deep pockets, and a love of the game sitting in the suite on the red line is pretty interesting.

Stoner Hall of Famer

Stoner

Posted
Posted

Quote from the Buff news:

 

"It was the Philadelphia Flyers' style of play that got me into it," Pegula said

 

 

I pray that still stands as he was referencing the mid '70s teams.

 

Dear baby Jesus and all that is holy...please let this be true and may Mr. Quinn enjoy his millions while behind the desk anywhere but HSBC arena.

 

I would trust this guy's wife as GM over Darcy as well.

 

 

Please...please...please......let the pain be over!!!!!!

 

This is like all those episodes of M*A*S*H where they celebrate, thinking the war is over.

 

You know this story is going to end with Radar announcing, "Incoming wounded."

 

Still, my nipples are hard.

Stoner Hall of Famer

Stoner

Posted
Posted

Interesting quote by LQ about rumors not having been true for four to five years. Has OSP been considering offers that long?

 

Also funny how all of a sudden Bucky acts like he's been on top of this story for months. He was caught as flat footed as Craig Rivet.

SDS All Star

SDS

Posted
Posted

what is the legal significance of "letter of intent"? Does that mean both sides agreed to an offer?

plenzmd1 Fourth Liner

plenzmd1

Posted
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what is the legal significance of "letter of intent"? Does that mean both sides agreed to an offer?

Not a lawyer, but believe prolly something along the lines of a inspection contingency when you buy a home. Golisano prolly showed him the top and bottom line numbers, now the new guy sends his boys in to inspect the details..all that being good, deal is done at this price no matter what happens to team, players etc in the meantime

jimiVbaby Fourth Liner

jimiVbaby

Posted
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Interesting quote by LQ about rumors not having been true for four to five years. Has OSP been considering offers that long?

 

Also funny how all of a sudden Bucky acts like he's been on top of this story for months. He was caught as flat footed as Craig Rivet.

He had to be. He treated it as an investment from the beginning to it's now forseeable end. Correct me if I'm wrong but I believe he bought the team for $92 million in 2003 and took on significant debt (~$25 million I believe) but the return on his investment is quite good for the 8 years he's had it. Although I really believe the taxes had a lot to do with this sale.

 

Golisano did exactly what he and more importantly Larry Quinn intended to do, save the franchise/keep the team in Buffalo/make some money in the process. The ownership stake in the team given to DiPofi and Quinn were more than likely a guarenteed piece of the pie to the two when the team was eventually sold.

notwoz Fourth Liner

notwoz

Posted
Posted

what is the legal significance of "letter of intent"? Does that mean both sides agreed to an offer?

 

 

Although I'm not a lawyer, from what I've seen: If an offer had been made and/or accepted, there would be no need for the letter of intent.

A letter of intent is usually submitted early in the negotiating stages to indicate the potential buyer is "really" interested, and not just kicking the tires. It's basically a demonstration of good faith.

The letter may or may not include details of how any transaction will take place (financing, timing, etc).

Patty16 Third Liner

Patty16

Posted
Posted

Although I'm not a lawyer, from what I've seen: If an offer had been made and/or accepted, there would be no need for the letter of intent.

A letter of intent is usually submitted early in the negotiating stages to indicate the potential buyer is "really" interested, and not just kicking the tires. It's basically a demonstration of good faith.

The letter may or may not include details of how any transaction will take place (financing, timing, etc).

 

 

Parts of the letter can be binding ie let me see your books. Overall, its a general agreement on price etc but not a contract.

 

Bascially says if everything checks out we have a deal.

That Aud Smell Hall of Famer

That Aud Smell

Posted
Posted

what is the legal significance of "letter of intent"? Does that mean both sides agreed to an offer?

Parts of the letter can be binding ie let me see your books. Overall, its a general agreement on price etc but not a contract.

 

Bascially says if everything checks out we have a deal.

what patty said -- it's a tentative deal, with many of the key terms included but made subject to change and otherwise conditioned upon a number of different things happening prior to closing. there's usually an escape hatch clause as well that allows either side to blow up the deal if something problematic emerges during due diligence (buyer finds out that cash flow isn't what was represented, seller finds out that buyer is illiquid).

 

this is a big feckin' deal. perhaps other than the events of june/july 2007, this is easily the biggest thing that's happened with the team since i logged onto this here board.

nfreeman Hall of Famer

nfreeman

Posted
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Larry Quinn adhered to a team policy of not discussing potential buyers. He did say rampant speculation about Golisano buying out his stake and that of chief operating officer Dan DiPofi was false. Quinn said such an agreement wouldn't be necessary for Golisano to sell his share.

 

What the hell does that mean? TG goes and LQ stays?

Yes, TG can sell his share, with is something larger than 51% and gives him control of the team. Unless theres an agreement otherwise, and it looks like there isnt, LQ can keep his share if he likes. It really doesnt affect the direction a new owner would want to take in changing the team. The new owner could also fire LQ from his official duties and leave him as part owner.

That would be accurate. Anyone buying Tom G's stake, would become the owner. Quinn's status as minority owner wouldn't change. The big question is whether any new owner would allow Quinn to continue meddling.

Just to flesh out the above, whether LQ would be required to sell his stake in any sale simply depends on the deal that exists between LQ and TG. In this situation, TG would usually (but not always) have the right to make LQ sell his stake if the buyer required it (which the buyer often would so it wouldn't have to deal with minority owners in the future -- which is why TG would typically have this right). However, the buyer could agree not to require LQ to sell, which would leave LQ in place as a minority owner.

 

this is something like a dream -- a guy with a net worth in the billions, with significant (well, not insignificant) ties to the area, and an historical love of the game that is rooted largely in our hometown team?

It really does sound pretty sweet, innit?

VansTheMans Fourth Liner

VansTheMans

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A HUGE DAY for all of Buffalo.

 

FInally, the team may have an owner whom actually CARES about the product that is on the ice.

 

And as an Urban Planner, I must say the Waterfront plan they are going through with is STUNNING. It's a breath of fresh air and exactly what downtown needed.

SDS All Star

SDS

Posted
Posted

 

this is a big feckin' deal. perhaps other than the events of june/july 2007, this is easily the biggest thing that's happened with the team since i logged onto this here board.

 

What about the server upgrade? :unsure:

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