Comments on: NHL Operating Incomes Analysis

By: Racki

Racki — Thu, 15 Sep 2011 21:14:33 +0000

Brandon Worley: Just wanted to leave a bit of information here: You are essentially correct in that the Dallas Stars are not as in bad a financial situation as it’s being made out to be. The team is for sale because Tom Hicks, the previous owner (technically current), owned not just the Stars but the Texas Rangers and Liverpool FC. He then defaulted on $525 loans tied to all three teams and basically just gave up, deciding to not pay the loans and to sell the teams instead. Selling the Rangers alone did not satisfy the lenders that now held the debt. Hence, the Dallas Stars were now tied to that debt as well. He needs to sell the team in order to satisfy all debts. Going to bankruptcy court is a clean way of satisfying all lenders, cleansing assets and assuring that the sale is completed to everyone’s liking. It has nothing to do with the team itself going broke.

Hey Brandon, thanks for confirming that for me! BTW, welcome to the site to you and Howdy

By: Howdy

Howdy — Thu, 15 Sep 2011 20:49:48 +0000

Very interesting, couple surprises in there (Dallas among them, IMO).

One note, Capitals numbers for last year/this year may look very different, now that they own the building.

By: Brandon Worley

Brandon Worley — Thu, 15 Sep 2011 20:38:32 +0000

Just wanted to leave a bit of information here:

You are essentially correct in that the Dallas Stars are not as in bad a financial situation as it’s being made out to be.

The team is for sale because Tom Hicks, the previous owner (technically current), owned not just the Stars but the Texas Rangers and Liverpool FC. He then defaulted on $525 loans tied to all three teams and basically just gave up, deciding to not pay the loans and to sell the teams instead.

Selling the Rangers alone did not satisfy the lenders that now held the debt. Hence, the Dallas Stars were now tied to that debt as well. He needs to sell the team in order to satisfy all debts.

Going to bankruptcy court is a clean way of satisfying all lenders, cleansing assets and assuring that the sale is completed to everyone’s liking. It has nothing to do with the team itself going broke.

By: Racki

Racki — Thu, 15 Sep 2011 20:35:58 +0000

Definitely true. The last 3 years haven’t been good to the Stars, but they did have one big 3 round run too (which explains the spike in 08). Carolina is a good example of that too… piss poor ever year, but only slightly piss poor when they beat us in the cup Detroit another good example.

Washington.. how can you not be in the black with Ovechkin there? The love affair is ending? Pittsburgh’s decline is also probably disturbing too. Wait till they watch the year without Crosby.

By: Mr.Majestyk

Mr.Majestyk — Thu, 15 Sep 2011 20:28:16 +0000

When teams had deep playoff performances they made lots of money