Sabres For Sale? Everybody Panic!
It’s back to being the voice of reason, I guess. For the past four or five months, our old friend Bucky Gleason has been dropping ominous hints in his column that “sources” said Tom Golisano was quietly shopping the Sabres.
I guess we now know from whence that comes, as shaky as it may be. Can someone please explain to me why I hear people freaking out about this? The easy and obvious money quote:
Billionaire Jim Balsillie contacted Buffalo Sabres owner Tom Golisano earlier this season about the possibility of purchasing the franchise…[snip]…Golisano indicated he would be open to selling the club, but not if Balsillie was planning to relocate it.
And people are getting upset by this? Tom Golisano just said the Buffalo Sabres are not leaving Buffalo on his watch, and people are…ripping him? Part of being back from my self-imposed exile meant listening to WGR today, and I couldn’t believe the level of anger out there (but blogs are the scum, right?). Here’s a little dose of reality for people…For those who don’t know, I own a business, and a fairly successful one that employs somewhere around 38 people. I routinely get one call per week asking if I am interested in selling this business. And while I have no desire to sell the company, I always at least listen to the offer. Because that’s what business people do. Heck, some schmoe (can someone e-mail me the correct spelling of schmoe, please?) might throw out a crazy number like $10 million some day, so you always listen. And Tom Golisano, who bought the Sabres for $92 million (plus about $30 million of debt-forgiveness), would be a fool not to listen when Forbes recently listed the value of the Sabres at around $170 million.
Because here’s the rub. While on paper the Sabres have appreciated in value by perhaps as much as $100 million dollars, not a penny of that has hit Golisano’s pocket. Heck, the best estimates of us hacks figure that the team has made perhaps $10 million since he acquired the team. He bought the team for $92 million. That means he’s still $82 million in the hole. Now with his money, Golisano can certainly look at the team as a solid long-term investment. But if someone were to walk in with $170 million in hand then he would be foolish, from a purely business perspective, to not take a serious look at the offer. He would go from being $82 million in the hole to having an extra $100 million in walking around money.
So to accuse Golisano of somehow being disloyal is simply absurd. The man is essentially saying that he will talk if someone is serious about buying the team, but the deal-breaker is moving them. I’m not sure what more we, as Buffalonians, can ask for.
And perhaps that’s not really a fair statement, because a new owner could mean a new coach or a new GM, and I happen to think we have the best coach in the league, and a top-ten GM as well. We do have an owner who forces them to stick to a certain business model that we as fans wish they didn’t follow quite so strictly, but I can understand the reasoning. For the Sabres to be sold (and Golisano wants to make his money someday) he has to be able to prove that the new owner can both make money and have a chance to win. And the only way to do that is to open the books and review the last five years of financial data and prove that there is positive operating income.
As long as Golisano’s line in the sand is not moving the team, I’m behind him selling when he feels the time is right. If he ever caves on that one stipulation, then death to him and to Paychex!
(Incidentally, if a blogger had written what Bucky Gleason had written about “sources” saying Golisano had shopped the team and then this came out, the blogger would have been flayed by the MSM, if any of them payed attention to hockey. Because blogs are rumor sites, and newspapers are hard-hitting sources of truth and journalistic integrity.)
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Kevin
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I am a born and raised Buffalo fan since my birth in Niagara Falls in 1977. For reference, my first communion gift from my parents was a replica Sabres Home White Mike Ramsey jersey. I still have that jersey. After stints at Georgetown and the U.S. Army, I have settled in DC where my Sabres, Bills and Hoyas passion runs unabated (I have season tickets to all 3). I believe that while supporting my franchises is good, I believe supporting them with data and statistics is better. -
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Amen! Especially this part
“Here’s a little dose of reality for people…For those who don’t know, I own a business, and a fairly successful one that employs somewhere around 38 people. I routinely get one call per week asking if I am interested in selling this business. And while I have no desire to sell the company, I always at least listen to the offer. Because that’s what business people do. Heck, some schmoe (can someone e-mail me the correct spelling of schmoe, please?) might throw out a crazy number like $10 million some day, so you always listen. And Tom Golisano, who bought the Sabres for $92 million (plus about $30 million of debt-forgiveness), would be a fool not to listen when Forbes recently listed the value of the Sabres at around $170 million.”
Clapclapclapclapclapclapclap
That tidbit was such a nonstory. WGR has these talking points, that just go through the entire day. Its annoying. Talk about something else.
Just like Howard Simon freaking out about Nathan Gerbe, being far apart on a contract. Paul Hamilton, nicely put the story down as a non issue.
Seriously how does Hamilton stay employed at WGR, with his reason and thinking about stories.
The best part of this? Everyone calling for Golisano’s head for listening to offers have been calling for Golisano’s head for owning the Sabres. It’s almost like they want the Rigas family back in charge.
Golisano’s not an idiot. You can’t become a billionaire if you are, unless you’re born into a Middle Eastern oil family. Though Balsillie is doing his darnedest to prove me wrong. He’s going to get so desperate to own a team that he’ll offer 3-4 times market value.
Just to play devil’s advocate, how much would a promise to sell to someone who wasn’t going to relocate really mean?
Seattle fans got told the team wasn’t going to relocate when Clay Bennet bought it and uh, yea that didn’t happen. I seriously doubt it’ll happen to the Sabres, mostly because we’re about the only city that gives a flying fuck about the NHL and relocating would be stupid long term, but when Ralph kicks off and the Bills are up for sale you can damn well bet promises like that are going to be thrown around.
@3: Yeah, that was awesome, listening to Hose going on and on about that in the morning…and then 8 hours later, the kid is signed.
@5: Aren’t they locked in to a long lease with the Arena? That’s why the Preds were so attractive to Balsillie, with their crap attendence he could get out of the lease.
Yup, that’s how you spell “schmoe”. Although, alternate spellings include “Bucky”, “Gleason”, and “Brind’amour”.
Well written, sir. People need to take it easy. If he sells the team he sells the team. As long as Golisano keeps the Sabres here and I don’t care who owns them.
Jon, you can actually write it into the bill of sale or contract or whatever you call it (how about receipt?) that the team can’t be moved. The Seattle situation is so messed up that you can’t cite it. Stern and the NBA wanted them to move and the agreement only included a provision that said that there would be a “good faith effort” to keep the Sonics and Storm in town.
Best coach in the league? Really? He’s a solid coach, top 10 even, but that’s a big claim for a guy who has never won a Cup.
@5 – it would mean everything if it were written in the contract.
whoops – looks like i was 25 minutes late to that one..
Well, let’s hope when one of our two franchises inevitably change hands, we get that guarantee in writing. What made me think that couldn’t go on was the lawsuit from Howard Shultz suing for his team back when Bennet violated that ‘good faith’ effort.
Like I said before, no way the Sabres are going anywhere. Buffalo is the only city in the States you can walk into a bar and not only is hockey on the television, but everyone in the place is watching it. The NHL is borderline retarded, but even they aren’t stupid enough to let that go away.
The Bills however, are out of here within two years of Ralph biting it, and watching all the drama unfold with the Sonics leaving Seattle over the past few months has really sort of felt like a preview for what we’re in for. A bunch of corporate decisions are going to be made by a bunch of douchebags with more money than I’d ever want, and all I’m going to be able to do is bitch and moan about losing my football team without making a bit of difference. It’s pretty fucking depressing now that I think about it…
@10 – That’s what you took away from my post? Talk about allowing semantics to overshadow the big picture…
Don’t forget the NHL has a say in any sale. Balsillie had the highest offer on the table in Pittsburgh & Nashville, but once his plan to move leaked out, the deals died. I don’t think the league would view trading its US TV rating leader for Hamilton as a step in the right direction.
The first time I heard this report on WGR yesterday, I either didn’t notice, or they didn’t say, that Balsillie had contacted TG “late last year.” The second time I heard it on the news update, they specified the time frame and I burst out laughing. Gee, wasn’t that about the time Balsillie got the shaft on buying the Predators? Of course he started drunk-dialing NHL owners to see if could catch anyone in a weak moment! The guy had made a bunch of promises about a team in Hamilton, including taking down payments, and he had just gotten the big heave-ho from the league. He was desperate to try to save face somehow.
this is the US – everything is for sale, it just depends on how much you are willing to spend…
Be careful Kevin, you’re upsetting the guys in the newsroom.
http://buffalonews.typepad.com/sabres/2008/05/sabres-balsilli.html
In terms of Balsille, it made perfect sense to try and get the Sabres anyways. We were one of the teams that was going to be a roadblock for him to get the team to Hamilton, why not just eliminate it.
In terms of Golisano, I have no problem with him listening to offers. Honestly, if I got a better offer to move on, I would probably take it in a heartbeat. And since he feels that the team is going to stay here, then life is better.
People are freaking out about this? I guess that’s why I don’t listen to the radio anymore. We posted it on the Roost yesterday and no one commented with torches ablaze. Maybe Strahan was right about radio along…
@14, everyone else was talking about the other stuff, I just noticed a throwaway line that I thought was an overstatement. Also, I’ve heard you mention it before and I thought you were just drunk.
@18 – Reading the comments on that post does my heart good. Too bad we don’t see some of those folks over here – I think they would like it.
I just read the comments over on Sabres Edge. I stopped reading the TBN blogs a few months ago because I couldn’t stand the tone, but I’m kind of impressed with the comment section today. I think that that guy (gal?) “ElmaGolf” has beaten everyone into submission! Well done, ElmaGolf!
@23 – Thanks, Kate! I followed Heather’s link from TopShelf over here and was surprised to see my name (BTW – “guy” is correct).
I tried for several weeks to “stem the tide” of unchecked negativity over at Sabres Edge with some logic and rational thought, and did end up getting a few other people to present the “alternate” side of things. But, it’s tough to keep going because some people are irrevocably convinced that EVERYTHING is horrible. I took a few weeks off, but jumped back in with the whole Balsille furor (and the subsequent “Don’t Criticize Bucky” Plea from Vogl).
@22 – Hey Kevin – I found this site through TopShelf and I like the perspective (from what I’ve seen so far). Perhaps I’m just a masochist and like the additional challenge of jumping into an “unfriendly” environment like Sabres Edge, as opposed to some of the more level-headed Blogs.
It was quite eye opening to see how much disgust there is with Bucky’s tone. I’ve been going directly after him on Sabres’ Edge (& via e-mail)for a few months now, particularly once I found his article from 2006 that directly contradicts all the crap he’s been spewing about the Sabres recently. It’s too bad – he obviously has some pretty good knowledge, but his imbalanced perspective forfeited his credibility.
Nice to see you made it over. If you ever need a rational port in a storm, just stop back any time.
Will do – it’s heartening to see so many “rational ports” out there when things get ugly (I think the toughest day was after blowing the 2 Goal lead to Ottawa).
What I find hilarious about that article 289 liniked to in comment 18 is that Vogl is complaining that “People don’t believe we research our stories, or they do believe we make stuff up.” The irony is that Gleason refers to Balsillie’s ‘native Hamilton’ in the excerpt. Except that he’s from Seaforth/Peterborough/Waterloo/Toronto, none of which could ever be considered Hamilton.