Vancouver businessman Tom Gaglardi and Monarch Investments finished initial negotiations to purchase the Dallas Stars and the paperwork for the sale has been moved to the NHL, according to Mike Heika of the Dallas Morning News.
But for those hoping to see this move as an overcome obstacle, you might want to tap the brakes. Because as Heika notes, it's merely nothing more than a necessary procedural move. Other groups can still bid on the club.
And there's also this little nugget from Heika's story.
With more than 40 lenders who have a legal rights to the Stars, one of the key contentions of the sale will be who gets paid what. While there has been jockeying for position about who gets paid what percentage, there also has been a lot of talk about who gets paid first. The sale price is not expected to cover the debt, so some lenders will not get paid back.
``In a traditional sale, you have a seller who is trying to negotiate with a buyer, and you have traditional sale practices. But this isn’t a traditional sale,’’ said one source. `` You have a group of sellers who have different opinions, and that really means you don’t have a seller, per se. Into that vacuum has stepped a lot of lawyers, and that has made the process very complicated.’’
In other words, let the legal haggling from those creditors who may not be made whole commence.
Still, the move does pave the way to Gaglardi's group given Stalking Horse status for an expected auction on the club. And that could come as early as next month.
And there's also this.
While the lenders have funded the team for the past two seasons, and allowed the Stars to up the payroll to sign seven free agents in the summer, it seems clear that they do not want to hang around to spend more money on the team next season. Players get their first paycheck on Oct. 15, and it’s expected that the new owner will be in place by that time.
Our long, painful nightmare should be over in about two months, folks.