Forbes: Dallas Stars Losing $1 Million Per Week? [UPDATED]

[Update by Brandon Worley:] Thanks to friend of the blog Mark Stepneski, a Dallas Stars official has responded to this report as "Totally, unequivocally untrue." At this point, I'm just going to assume any of these "reports" that are coming from "sources", is nothing more than a p.r. salvo fired from a lender or a prospective buyer or someone just looking to have a laugh.

I felt from the start this report just didn't seem right and while the Stars probably won't come out and let the world know they're losing money, I highly doubt if there was some truth here we wouldn't have received this response. [End Update.]

With the draft concluded, a new coaching staff hired, seven free agents signed to round out the roster and the budget increased, we've been operating under the assumption that time was no longer "of the essence" where the sale of the Dallas Stars is concerned.

Forbes.com has a little blurb today that suggests otherwise. As always, take this kind of thing with a grain of salt...

Because of their high debt and interest payments the Dallas Stars of the NHL are losing $1 million a week, according to someone familiar with the negotiations surrounding the team's pending sale. The debt is being capitalized rather than paid, according to my source.

The Stars, technically still owned by Tom Hicks through the Hicks Sports Group, are being overseen by their creditors. Says my source: "While the guys putting the contract together are haggling over where to put commas the team continues to bleed money. They need to ask themselves is it worth all the extra time they are taking because losses are growing every day. [Forbes]

"Capitalized," correct me if I am wrong, meaning that the one million is just being added to the overall sum owed. Every week.

The assumption currently is that Tom Gaglardi's people are working on a signed purchase agreement and have been for a period of time nearing three months (or to put it in terms of this report, somewhere around an extra $12 million in debt). Hicks Sports Group, who still technically owns the team, reportedly has as much as $70 million in cash on hand from the sale of the Rangers that will be distributed to that teams creditors, some of whom are involved in the Stars sale as well.

Does this mean there is a certain fervency behind the scenes not evident from the relative dearth of reporting on this sale? As fans we can't help but hope so, but for all we know it means nothing at all and is just a different way to express losses previously discussed.

Only two things are really interesting here. According to my calculations we could, with tax, purchase just over 1.8 million tacos from Jack in the Box per week with that money. The second is that humorous picture of Matt Niskanen Forbes.com used in their posting for whatever reason.

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