THN: Dallas Stars Could Be Sold This Summer?
by Brandon Worley on Feb 4, 2010 5:58 AM CST
in Dallas Stars News
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PrintAccording the The Hockey News and The Sporting News hockey blog, the Dallas Stars could be up for sale as early as this summer.
Despite selling the Texas Rangers for more than $500 million recently, Stars owner Tom Hicks' financial troubles have not subsided and the CIT Group, to whom Hicks has defaulted on loans, is forcing Hicks to sell the NHL team.
To that end, the Stars have hired an investment advisor to put the team on the market. The starting asking price is believed to be more than $300 million. It's believed the Stars lost just $5 million last season, but that was without the benefit of any home playoff dates.
With reports out about the troubles surrounding the sale of the Texas Rangers, and how that sale would not satisfy all of the debt Hicks Sports Group has accrued, it's not surprising that the Stars would be next in line. One reason the Stars were not sold before the Rangers is because of the value of an NHL team versus a baseball team, and how it was hoped that the sale of the Rangers would satisfy all of the loans HSG has defaulted on. Yet with Hicks' financial troubles mounting, and the fact that the Stars still generate a very high amount of revenue, selling the hockey franchise might not be as hard as some thought.
With the Tampa Bay Lightning sale in it's final stages, the NHL could set it's sights on Dallas and the ownership situation that is developing here.
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Tom HIcks is slowly leaving my life
and it feels so good
"They’ve taken the Illini to the woodshed."
-Steve Lavin on Mizzou v. Illinois
so ...
is there a possibility we’ll lose our team?
Move?
Thats my first question. Does the nhl have to give permission to move a team. I wouldnt think the stars would move at all becuase they do so well here. And the hocckey community the have created in the DFW area and Texas. What does this do for the Texas Stars who are awaiting to buy a franchise? Arrrggghhhh so many questions.
I dont get to see the Stars live in personhardly ever so I would follow them on tv wherever they would move.. But i hope this isnt an option. I just hope the Balissle guys doesnt find out the y are for sale,lol
No move.
The NHL has to approve it. And hockey is a success in Dallas, they have a nice new Arena, strong ties to the community and make loads of money.
They aren’t going anywhere.
Defending Big D: A Dallas Stars blog on SBN: easy to use, free to join.
by Brandon Worley on Feb 3, 2010 4:58 PM CST via mobile up reply actions
Crap...
What happens to the Texas Stars (also owned by the Hicks Sports Group) if this happens? Argh…
Blogging about the Texas Stars at HundredDegreeHockey.com
Technically there still not a franchise.
I believe its a temporary thing for the moment, soo…
Anyways I heart Tom Hicks for saving us from uber douche bag Norman Green. Stars hockey wouldn’t have survived with him at the helm.
I am still "FRISKY FOR NISKY"
Probably Best
I am thankful for what Hicks gave us in the past and most notably before the salary cap came into place. He always provided top of the line funding and made us extremely competitive. Now that’s not to say money solves problems, but it can help. For instance when the team wanted Guerin, they got him. Not saying that all the moves worked out perfectly or as well as hoped, but we got who the GM deemed to be the right piece. With that said, he is not providing the Stars the same opportunity that was once available and it is best to cut ties if the new owner would increase pay roll. Thanks for the past Tom and hopefully the future…
by modano9 on Feb 3, 2010 6:46 PM CST reply actions 1 recs
I agree totally
I have friends who are Rangers fans that were mad becuase Hicks only cared about the Stars and didnt help the Rangers,, Now I know hw Rangers fans felt.
I am probably in the minority here
but I think up until this year, he’s done a pretty good job with the Stars. I don’t follow the other teams he owns so I can’t comment on them.
I must have this thing for hockey boys from Whitby with the initials JN.
Well Like I said during the show tonight...
Our worries about Hicks continuing as owner are caused, in large part, by his stewardship of the Texas Rangers in the past 9 years or so.
He signed Alex Rodriguez to that ridiculous $252 million 10 year deal in 2000 then signed a slew of veteran free agents in 2001 and 2002. After his team finished last in all three seasons, he slashed the payroll dramatically.
Then he traded A-Rod. When fans worried (and rightfully so as we all now know) that he’d stay a spend thrift owner, he said, ’Don’t worry. The trade of A-Rod will allow us to pursue pitchers in free agency.’
Of course, that never happened and the Rangers, despite being in the 5th largest media market in the country, have a payroll that is lower than 2/3 of the teams in the majors.
You’re right in that up until last summer, Hicks has been a good owner from the standpoint he’s spent to the cap. But the moment he internally capped the payroll last year, fans like Brandon Worley and myself knew what Stars fans outside of the Metroplex had yet to learn. As long as Hicks stays the owner, this is what you’ll get.
Sure, he’ll try to assuage fans’ worries by suggesting it’s a temporary payroll slash. But the only thing that will resolve this is selling the club.
Financially, it’ll be a boon to this team. But probably not in time to help out next season. And when he does sell, you wonder just how keen a new owner would be, obviously, to keeping Joe Nieuwendyk (who contrary to reports, is not whom I’m naming my soon-to-be-arriving son after) and Marc Crawford.
Defending Big D Free to use and easy to join, as well as easy to use and free to join!
TheStarsFans Because a knee-jerking city needs a little common sense
YNWA Because do you really want to root for ManU?
Interesting Point
Depending on the timing of the potential sale, Crawford and Nieuwendyk will either be replaced immediately by their ‘own guys’ or given a year to have a great success or be removed following. That is generally what occurs with new ownership. If it would negatively affect the team as in draft preparation, etc. you let them have a year to prove themselves. But they would definitely be on the hot seat if the team is sold, especially Crawford.
seriously if this team gets rid of Joe twice
ergggggg
I must have this thing for hockey boys from Whitby with the initials JN.
As long as there is no move
It would hard to view it as a bad thing. Depends on the buyer I guess.
But the mere theory of a possible move makes me deeply, deeply uneasy. I seriously don’t know what I would do.
by Brad Gardner on Feb 3, 2010 9:53 PM CST via mobile reply actions
The Stars are not moving.
No way, no how. This is a team deeply entrenched in the area, a new arena, makes a lot of money and lets the NHL tout that hockey CAN work in the south.
The league won’t o.k. a sale if they don’t want that team moving, if the prospective buyer has that in his plan. See: Phoenix.
Defending Big D: A Dallas Stars blog on SBN: easy to use, free to join.
by Brandon Worley on Feb 4, 2010 7:27 AM CST up reply actions
Tell me
Tell it to me a thousand more times.
I need reassurance!
I CANNOT LOSE MY HOCKEY TEAM!!!!
;)
Brandon Bibb
I believe you are speaking the truth. We all like to talk about the problems this team has but the #1 in my book is Hicks not spending more money.
After following the Rangers' sale
I just know one thing:
Don’t hold your breath. Hicks will be dragged out kicking and screaming.
"Drinks are on me if Lewis posts >168IP and an era lower than 3.86." by RangerMad on Jan 20, 2010 12:36 PM PST
What I don't understand...
When you have a team that IS a success- and despite the Canadian media wanting you to believe the South is a failure, it works in Dallas- why does it behoove you to gut the team because you aren’t making enough money? Isn’t a profit still a profit?
Allow me to simplify because I’m too lazy to look up real numbers:
Let’s say you have a competitive team who is making $300 million a year. After salary, you have a profit of $20 million. You have to take into account a few bad years here and there, so you can expect a +/- of $5 million if the ticket sales start slumping.
If you then lower the payroll by $10 million but as a result, your team isn’t as competitive and so sells less merchandise, fewer tickets and less food/drink so that your profit goes down by >$10 million. Aren’t you cutting your own throat? Wouldn’t the addition of a $4 million defensman who gives you a much better chance at making the playoffs (and having at least 2 sold-out playoff home games and merchandise, etc) be worth a shot?
Especially if the damage you do extends over one season?
No playoffs last season
Equaled $5 million loss overall.
Defending Big D: A Dallas Stars blog on SBN: easy to use, free to join.
by Brandon Worley on Feb 4, 2010 11:02 AM CST via mobile up reply actions
I couldn't agree more! Not making the play-offs is a huge hit financially.
And not just in missed ticket sales for the play-off games. It’s merchandise, season ticket renewals, overall ticket sales the next season. Dallas wants to see a winner, not just a hockey game. That’s just the make-up of the sport’s fan here. And even more so when the economy is down. Missing the play-offs two years in a row? Definitely not good for the potential sale this summer.
Supporting your local ice troll, 24/7/365
Hicks got greedy
As a brit who supports the Stars from afar,I think Hicks got greedy by trying to follow the Glazer’s in to the soccer market over here. Then with the economic downturn he was always going to be in trouble with all the money he owe’s, it was only a matter of time before the BANKS came knocking. But I don’t feel the least bit sorry for him as he will still come out of all this with a profit.
I thank him for the CUP and all the good times but it’s been obvious over the last 2 years that he was no longer willing to spend big on any of the teams he owns.
Not to defend him...
But I don’t know that he has much of a choice on spending right now. With the credit markets more or less frozen, I’m guessing he’s being “strongly advised” not to put money into anything not making an obvious profit now but that’s also shortsighted IMO.
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