Terry Pegula named Sabres President; PSE separating Bills and Sabres

[Flashsabre]

1 hour ago, xzy89c1 said:

Separating everything is part of him trying to sell team. He has told people he has lost 300 million, this was a couple of years ago so more now, since he purchased Sabres. There is not a path to breaking even in the long term right now. Even if rink is renovated or new one built he will not be able to raise prices high enough to pay for it. The lack of Corporations in Buffalo removes a huge revenue stream most other teams have. Buffalo has amongst the lowest per game revenue in the league. 

With Kim out of picture he might want to reduce his responsibilities to just the Bills and sell the Sabres. 

But he hasn’t lost money. What is the value of the Sabres now vs when he bought them? That is where the money is not the day to day operating costs. The Sabres as an asset have increased in value.  And the value of the Bills is crazy. Overall he will come out well ahead.

[MBD]

19 minutes ago, Flashsabre said:

But he hasn’t lost money. What is the value of the Sabres now vs when he bought them? That is where the money is not the day to day operating costs. The Sabres as an asset have increased in value.  And the value of the Bills is crazy. Overall he will come out well ahead.

It's paper money.  Until he sells it's not actual money.

[nucci]

14 minutes ago, MBD said:

It's paper money.  Until he sells it's not actual money.

the money in my wallet is made of paper

[That Aud Smell]

18 minutes ago, MBD said:

It's paper money.  Until he sells it's not actual money.

I follow you. You mean "paper profit" or an unrealized gain.

[That Aud Smell]

39 minutes ago, Flashsabre said:

But he hasn’t lost money. What is the value of the Sabres now vs when he bought them? That is where the money is not the day to day operating costs. The Sabres as an asset have increased in value.  And the value of the Bills is crazy. Overall he will come out well ahead.

The Sabres have reportedly lost money on their P&L (Income) statement for most years that the Pegulas have owned them. At year's end, if the Sabres were in the red, how was the budget balanced such that all obligations were met? Pegula bucks, presumably.

Now, from the standpoint of the Pegulas' balance sheet, there's been a great increase in wealth. But that positive balance sheet won't necessarily help them pay off year to year losses. Unless of course they're borrowing (financing) in order to pay off those annual losses and the company's increased value is allowing them to borrow in a way where they're not much out of pocket.

[Doohicksie]

You don't get to be a billionaire without learning how to manage cash flow.

[That Aud Smell]

56 minutes ago, That Aud Smell said:

The Sabres have reportedly lost money on their P&L (Income) statement for most years that the Pegulas have owned them. At year's end, if the Sabres were in the red, how was the budget balanced such that all obligations were met? Pegula bucks, presumably.

I'll also point out that not all "annual losses" are necessarily presently realized (cash) in nature. Amortization and depreciation may show up as liabilities on your annual income statement. I'm not an accountant, so I'm not sure whether the Pegulas would be obliged to put cash into the Sabres to make those non-cash loss pieces of the budget balance.

[Sabres Super Fan]

On 8/28/2023 at 12:19 PM, PromoTheRobot said:

Why would he make himself  president of a team he's going to sell?

Since you are one of the better Buffalo fans with a open mind I will try to answer your question with some speculation because I am not there on the inside of the Buffalo Sabres I am just a Buffalo fan. My guess is Terry Pegula made himself Buffalo Sabres president because he is only selling 49% or less to a group of investor’s shareholders bought in by John Roth potentially that is why John Roth is there potentially. It’s good news for the Buffalo Sabres fans wanting Terry Pegula to sell the team because he is going to have to answer to a group of investor’s shareholders. Why that is good news is because Terry Pegula is going to have to get with the Buffalo Sabres program and answer for his bumbling management style of the Buffalo Sabres or risk being forced out by the 49% shareholders to sell them his 51% controlling interest the 49% potentially saying no more money to run the Buffalo Sabres into the ground yearly with free for all firings of management people. That 49% will have right of first refusal to purchase the other 51% of the Buffalo Sabres at some point overtime if I was guessing.
 

It’s good news because Terry Pegula is going to have to answer for 12 years of Hockey Hell for the Buffalo Sabres finally if that continues plus adding in Terry Pegula is way over his head dealing with sharks like Jerry Jones company Legends. Along with I personally have doubts 62,000 Buffalo Bills fans are paying outrageous PSL’s prices for the Buffalo Bills tickets in the new Bills stadium which will put more stress on Terry Pegula liquidity he will sell all of the Buffalo Sabres by 2030 at the latest potentially is my guess. The bad news for us Buffalo fans that want Terry Pegula to sell his teams is he still owns 100% of the Buffalo Bills and controls Highmark Stadium 2 lucky us? As a Buffalo fan I am good with that compromise. It’s the one man owning most of our sports teams I started to not like overtime it became stale along with too many Buffalo Bills fans that defended Terry Pegula Buffalo Sabres ownership because he bought the Buffalo Bills which became tiresome. There were some Buffalo Bills fans always excusing Terry Pegula from the Buffalo Sabres dealings because all they cared about was the Buffalo Bills staying in Buffalo even though they are apples and oranges. When PSE jumped the shark bringing in “Bills Mafia” fans like “Bills Elvis” etc when Buffalo Sabres attendance was low after Covid 19 like the “Brady Brunch” television show bringing in “Cousin Oliver” the last season of the show as a Buffalo fan I knew that PSE management is out of fresh ideas for the Buffalo Sabres and it’s time for new ownership separate from the Buffalo Bills for the Buffalo Sabres in my opinion. Go Sabres! Let’s Go Buffalo 

[Broken Ankles]

12 hours ago, nucci said:

the money in my wallet is made of paper

Is it?  Or is it made of cotton and linen? 

[LGR4GM]

16 hours ago, Buffalo Sabres Fan said:

Since you are one of the better Buffalo fans with a open mind I will try to answer your question with some speculation because I am not there on the inside of the Buffalo Sabres I am just a Buffalo fan. My guess is Terry Pegula made himself Buffalo Sabres president because he is only selling 49% or less to a group of investor’s shareholders bought in by John Roth potentially that is why John Roth is there potentially. It’s good news for the Buffalo Sabres fans wanting Terry Pegula to sell the team because he is going to have to answer to a group of investor’s shareholders. Why that is good news is because Terry Pegula is going to have to get with the Buffalo Sabres program and answer for his bumbling management style of the Buffalo Sabres or risk being forced out by the 49% shareholders to sell them his 51% controlling interest the 49% potentially saying no more money to run the Buffalo Sabres into the ground yearly with free for all firings of management people. That 49% will have right of first refusal to purchase the other 51% of the Buffalo Sabres at some point overtime if I was guessing.
 

It’s good news because Terry Pegula is going to have to answer for 12 years of Hockey Hell for the Buffalo Sabres finally if that continues plus adding in Terry Pegula is way over his head dealing with sharks like Jerry Jones company Legends. Along with I personally have doubts 62,000 Buffalo Bills fans are paying outrageous PSL’s prices for the Buffalo Bills tickets in the new Bills stadium which will put more stress on Terry Pegula liquidity he will sell all of the Buffalo Sabres by 2030 at the latest potentially is my guess. The bad news for us Buffalo fans that want Terry Pegula to sell his teams is he still owns 100% of the Buffalo Bills and controls Highmark Stadium 2 lucky us? As a Buffalo fan I am good with that compromise. It’s the one man owning most of our sports teams I started to not like overtime it became stale along with too many Buffalo Bills fans that defended Terry Pegula Buffalo Sabres ownership because he bought the Buffalo Bills which became tiresome. There were some Buffalo Bills fans always excusing Terry Pegula from the Buffalo Sabres dealings because all they cared about was the Buffalo Bills staying in Buffalo even though they are apples and oranges. When PSE jumped the shark bringing in “Bills Mafia” fans like “Bills Elvis” etc when Buffalo Sabres attendance was low after Covid 19 like the “Brady Brunch” television show bringing in “Cousin Oliver” the last season of the show as a Buffalo fan I knew that PSE management is out of fresh ideas for the Buffalo Sabres and it’s time for new ownership separate from the Buffalo Bills for the Buffalo Sabres in my opinion. Go Sabres! Let’s Go Buffalo 

What?

[JustOneParade]

Exactly @LGR4GM.

First, a 51% owner can not be forced out by the minority owners. And I would have to believe that Roth will be carefully vetting those 49% owners (IF that's the plan to divest part of the team). I mean, even if you believe a 49% stake can oust TP, why would Roth bring someone in with that mindset and, thus, put his own job in peril. 

[Stoner]

It made perfect sense to me.

[That Aud Smell]

2 hours ago, LGR4GM said:

What?

I only regret that the poster included a single hard return. 

[Doohicksie]

If we're talking institutional investors,

Quote

 

The NHL became the latest league to allow private equity firms to invest in teams...

• NHL teams can sell up to a 30% stake to private firms.
• Individual firms can own up to 20% of a team.
• Firms can have stakes in up to five NHL teams.
• The minimum investment required is $20 million.

 

Edited September 1, 2023 by Doohickie

[xzy89c1]

23 hours ago, MBD said:

Those are recent developments and you could be right.  But it doesn't matter now since the team won't be leaving Buffalo anytime soon.  

why are you confident they wont move?

I wish we were building a great downtown hockey rink instead of the bills stadium. I think we will end up with only 1 pro team in next ten years. With the money sunk into stadium bills are not going anywhere. Buffalo cannot support two pro teams anymore. I would vote for sabres over bills. 50 games a year with playoffs. I am being optimist i know. Bills are maybe 10 games that we care about if they get a couple home playoff games. 

Would you all rather have Bills or Sabres? I am definitely Sabres all the way

[Pimlach]

14 minutes ago, xzy89c1 said:

why are you confident they wont move?

I wish we were building a great downtown hockey rink instead of the bills stadium. I think we will end up with only 1 pro team in next ten years. With the money sunk into stadium bills are not going anywhere. Buffalo cannot support two pro teams anymore. I would vote for sabres over bills. 50 games a year with playoffs. I am being optimist i know. Bills are maybe 10 games that we care about if they get a couple home playoff games. 

Would you all rather have Bills or Sabres? I am definitely Sabres all the way

Why do you say Buffalo cannot support 2 Pro teams?  

[Eleven]

6 minutes ago, Pimlach said:

Why do you say Buffalo cannot support 2 Pro teams?  

Buffalo absolutely can.  There are what, 7-8 million people within a 90 minute drive?  (I drive to Toronto in 90 minutes.  If it takes you longer, well, maybe I will teach you my secrets for a fee.)

People who base statements like this based upon US demographics or US TV market share don't quite get it.

Edited September 1, 2023 by Eleven

[nucci]

2 hours ago, xzy89c1 said:

why are you confident they wont move?

I wish we were building a great downtown hockey rink instead of the bills stadium. I think we will end up with only 1 pro team in next ten years. With the money sunk into stadium bills are not going anywhere. Buffalo cannot support two pro teams anymore. I would vote for sabres over bills. 50 games a year with playoffs. I am being optimist i know. Bills are maybe 10 games that we care about if they get a couple home playoff games. 

Would you all rather have Bills or Sabres? I am definitely Sabres all the way

Been supporting 2 teams since 1970. Did ok with 3 teams when Braves were around and good. Not having an NFL team would negatively affect the area more than an NHL team.

[PerreaultForever]

2 hours ago, xzy89c1 said:

Would you all rather have Bills or Sabres? I am definitely Sabres all the way

Quite a few people here are not in Buffalo and are not Bills fans. Never have been. I kind of liked them a little when I was young living in Hamilton cause back then they didn't have cable packages or streaming and Bills were the team on the tv more often than not. Used to enjoy those Buffalo Miami battles. I liked Bruce Smith a lot. Hated Dallas. But did I care about the Bills ever? No. Not really. 

Having said that, I would hope they stay in Buffalo. Buffalo as a city does not deserve the sort of kick in the teeth that either team moving delivers. 

[That Aud Smell]

3 hours ago, xzy89c1 said:

why are you confident they wont move?

If private equity were to get its talons into the franchise, all bets would be off AFAIC.

I’d personally prefer the Sabres if I had to choose.

But for the overwhelming majority of people from/in/of Buffalo, it’s the Bills without a doubt. The NFL rules the sports entertainment world. People all over the country and around the world know to say “Bills” when you say you’re from/of Buffalo.

[Weave]

3 hours ago, Eleven said:

Buffalo absolutely can.  There are what, 7-8 million people within a 90 minute drive?  (I drive to Toronto in 90 minutes.  If it takes you longer, well, maybe I will teach you my secrets for a fee.)

People who base statements like this based upon US demographics or US TV market share don't quite get it.

Eleven’s milkshake brings the boys to the yard?

[Eleven]

2 hours ago, Weave said:

Eleven’s milkshake brings the boys to the yard?

I think I need to know what this means....

[That Aud Smell]

7 hours ago, Eleven said:

Buffalo absolutely can.  There are what, 7-8 million people within a 90 minute drive?

The dearth of corporate money is an issue.

Regrettably, not even the Buffalo Billion has helped improve our prospects in that regard.

[kas23]

Something is afoot. I wonder if this is holding up the “finished” Dahlin contract. 

[Eleven]

1 hour ago, That Aud Smell said:

The dearth of corporate money is an issue.

Regrettably, not even the Buffalo Billion has helped improve our prospects in that regard.

It doesn't matter.  There isn't corporate money in Winnipeg or Phoenix (not for hockey!) either.  Or a few other cities but I'm too tired!  The fact that there are only two teams HELPS, not hurts.  Think of how much more corporate money St. Louis gets now that it's just them and the Cardinals.

9 minutes ago, kas23 said:

Something is afoot. I wonder if this is holding up the “finished” Dahlin contract. 

RD was at Bacchus last night having a nice meal, from what I understand.