The Pegulas hit the eject button

[inkman]

11 hours ago, dudacek said:

I haven’t rewatched, but didn’t Terry say something to the effect of not having any debt worth worrying about?

He did. It was interesting that he went right to debt and not talk of revenue.  

[darksabre]

1 minute ago, inkman said:

He did. It was interesting that he went right to debt and not talk of revenue.  

I'll take it a step further and say that it's weird they wouldn't be carrying any debt. Don't most businesses carry debt when things are good financially? Debt can mean the banks are good with extending you credit. If you're not carrying debt that means you're not going to banks for lines of credit, which means you're not doing any business growth stuff...

[inkman]

13 minutes ago, darksabre said:

I'll take it a step further and say that it's weird they wouldn't be carrying any debt. Don't most businesses carry debt when things are good financially? Debt can mean the banks are good with extending you credit. If you're not carrying debt that means you're not going to banks for lines of credit, which means you're not doing any business growth stuff...

Yes!  Terry needed to get his FICO score up so they can secure funding for a new Bills stadium! ?

[Getpucksdeep]

14 minutes ago, inkman said:

He did. It was interesting that he went right to debt and not talk of revenue.  

That entire exchange was weird.  I heard the question as specific to sports but he answered it from the Oil side.  So, I heard it as only the oil side has no debt.  

I assume he paid cash for Bills and Sabres.  

@darksabre  Agreed but for big stuff like capital improvements ie new stadium.  Or re: oil maybe to buy a new drill?  Don't know that biz well.  But sports wise I can't see any good reason to carry debt except to build stadium or purchase the team.  If borrowing to operate day to day es no bueno.

[gris]

This thread paints a dire picture of Pegs finances.

• financial turnaround is contingent upon a turn around on the ice
• turn around on the ice requires flashy salaries and experienced hockey people ($$$)
• there will be no turn around on the cheap and the team will spiral deeper into financial problems and get worse on the ice
• it's hard to see where this goes other than bankruptcy and sale of the team 3 to 5 years from now

Let's hope Ralph Krueger and Kevyn Adams can find success.

[SwampD]

5 minutes ago, gris said:

This thread paints a dire picture of Pegs finances.

• financial turnaround is contingent upon a turn around on the ice
• turn around on the ice requires flashy salaries and experienced hockey people ($$$)
• there will be no turn around on the cheap and the team will spiral deeper into financial problems and get worse on the ice
• it's hard to see where this goes other than bankruptcy and sale of the team 3 to 5 years from now

Let's hope Ralph Krueger and Kevyn Adams can find success.

Who's going to play the part of Kevin Adams in the movie "Moneypuck" in ten years?

[Taro T]

2 hours ago, darksabre said:

I'll take it a step further and say that it's weird they wouldn't be carrying any debt. Don't most businesses carry debt when things are good financially? Debt can mean the banks are good with extending you credit. If you're not carrying debt that means you're not going to banks for lines of credit, which means you're not doing any business growth stuff...

Would be shocked if they don't have a LOC and have seen somewhere that the Bills (mildly surpringly) do carry a reasonable debt load.  (Too busy to try to track down that original article & may be confusing Sabres w/ Bills.)

Don't believe the "concessions loan" due to Delaware North was paid off at the time of purchase, but that was the only appreciable debt the Sabres had when Pegulas bought (it's good to have the cash to pay up front).

Most franchise owners take on huge debt packages when they buy teams because their businesses have great cash flows (which is how they afford $B toys) but most have the bulk of their net worth locked up in the business and don't have a few $B in cash lying around.  They have to take out loans which are secured on the teams themselves but are expected to be repaid through the cash coming in from the original business.  

The Pegulas' situation where they were able to liquidate large portions of their business was HIGHLY unusual.  They didn't take on any (relatively) appreciable loans in any of these purchases, in part because any cash they kept on hand rather than using to buy the teams needed to find another home.  And they can't just stick $1B in the bank or under the mattress. 

They likely are taking on more debt to cover ST expenses than they'd like, but even in a fire sale (were it ever to come to that) they'd have to absolutely clear $2B (minimum what they'd get for the Bills) & likely at least another $1 for their land & other assets.  They'll be fine LT.  But could be facing serious ST pain.

[Weave]

I suspect we can kiss develop-by-winning goodbye in Rochester.  Top AHL coaching candidates will go elsewhere because of these firings.  Top FAs will go elsewhere without a commitment to winning. Our prospect pool isn’t enough talent to ice a winning team.

It looks like Inky’s Friday nights will be spent elsewhere.

[Sabres Fan in NS]

I have said in another thread that I do not buy this cash strapped stuff despite what was said in recent press conferences.

A financial crisis is just what the doctor ordered when you are just not happy with the direction your team is going.  Blame the CPAs.  Blame the bean counters.  No one ever questions those guys and gals.  It has happened in my own life experience.

[Thorner]

On 6/17/2020 at 1:33 PM, SwampD said:

Who's going to play the part of Kevin Adams in the movie "Moneypuck" in ten years?

Gerry Dee Canadian actor/comedian, assuredly