'So in an attempt to allow the recently bankrupt Buffalo Sabres to benefit from the wisdom of our experience (while at the same time conveniently fulfilling the terms of our plea bargain with the IRS), we present the Top 10 Things That Can Be Done to Ease the Sabres' Financial Burdens.'
Archives for January 13, 2003
'"We now are comfortable — subject to final bankruptcy court approval — that there are adequate funds to see the operation of the franchise through to the end of the season if necessary and effectuate the sale to Mark Hamister and Todd Berman."'
'“The Sabres are in a real tough situation — much worse than Ottawa,'' said Sal Galatioto, head of Lehman Brothers Inc.'s sports lending unit. “In Ottawa, at least you have stable employment with the federal government, but in Buffalo, if they didn't already have a team, nobody would put one there.'''
'Brad May, Phoenix Coyotes: $104,128 in deferred compensation.'
'"Not only could the plight of the Senators and the Sabres be used as a way to get a salary cap, it should be used," said Marc Ganis, president of SportsCorp Ltd. and a sports finance analyst. "The problems with many teams out there is that there is no connection between salaries and revenues and teams are losing 15 to 20 percent of their asset value in operating losses each year. If you do that for more than a couple years, you have to file for bankruptcy."'
'The Buffalo News has not been a simple reporter of facts in these matters. It has relentlessly pimped the Hamister deal, not only in its editorial columns again and again, but also with puff pieces on its front pages.'
'As patient and methodical as Hamister is reputed to be, do you think this purchase package got put together without once sitting down and figuring out how one-third of the plan was going to happen? They know how it’s going to end–this is just the “public hearing-on-the-radio” period when we all figure out why putting taxpayer dollars into the Arena–again–is a good idea.'
'The team was expected to list liabilities of some $238 million with assets of about $68 million.'
'Commissioner Gary Bettman said the Chapter 11 filing in U.S. Bankruptcy Court in Buffalo is a step toward resolving the financial problems that put the Sabres under the league's control in June. The team is for sale. “It will enable the Sabres to secure financing that will allow them to continue to operate in the ordinary course, subject to league supervision, while the sale process is completed,'' Bettman said.'
The Sabres have been financially troubled for the past few seasons and became the second NHL team in five days to file for bankruptcy. Last Thursday, the Ottawa Senators filed for bankruptcy protection in the United States and Canada.