Vote in Arizona could go long way in determining fate of Thrashers
The clock could start ticking on the Thrashers this week – and it could move quickly.
On Tuesday, the city of Glendale will vote on whether to pay another $25 million to the NHL. That money would be used by the league-owned team, rescued from bankruptcy in 2009, for operating expenses and would keep the financially struggling team in Arizona for one more season. According to several media outlets, the proposal is expected to pass.
Last week the city of Glendale paid the NHL $25 million for operating losses for last season.
The NHL is looking for an owner that will keep the team in Glendale. Efforts to sell to Chicago businessman Matthew Hulsizer have been ongoing for months in a complicated deal that has a local watchdog group threatening legal action.
The Phoenix franchise has been eyed by prospective buyer True North Sports and Entertainment, which would purchase the team and move it back to Winnipeg where it relocated from in 1996. However with the Coyotes staying in Arizona for at least another year, True North will likely turn its efforts, quickly, to the Thrashers, who have been for sale in earnest for several years. The Atlanta Spirit, owner of the Thrashers, Hawks and the operating rights to Philips Arena, have been looking for a buyer and/or investors and have said relocation is a possibility. Co-owner Michael Gearon Jr. told the Atlanta Journal-Constitution in February and again last week that there is a “sense of urgency” to find a solution to the financial losses suffered by the team. The Thrashers could fetch upwards of $170 million from True North with the NHL getting around $60 million as a relocation fee.
The Thrashers are not expected to be sold for that much to a buyer that would keep the team in Atlanta. Team president Don Waddell has been actively working with groups interested in purchasing the Thrashers. He told the AJC this week that there are currently two groups, both out of town, interested in purchasing the Thrashers and keeping them here. However, talks have not progressed beyond a preliminary stage. The clock on getting such a deal done could start with the Coyotes situation settled, at least temporarily.
The situation brings up three main issues concerned with the Thrashers.
1. Are the Spirit committed to selling to an owner that will keep the team in Atlanta even if it means turning down a potential offer and extending the search process? If offered such a sale price from True North, the owners could stand to make more money, minus capital calls, than their original cash investment in all three entities.
Co-owner Bruce Levenson and Gearon have said that keeping the Thrashers in Atlanta is their first choice. However, they have also made it clear they no longer desire to bear the financial responsibility of a franchise that is losing money, up to $130 million over the course of their ownership according to court documents. That figure does include the fact that a portion of arena revenues go directly to bond payments.
By selling and relocating the Thrashers, the Spirit does stand to lose additional revenue. It would lose a pro-rated amount on the $10 million annual naming rights to Philips Arena without an NHL occupant. It would also lose revenue associated with having 41 dates in the arena.
2. Will the NHL work with Atlanta, as it has with Phoenix, to avoid franchise relocation?
NHL Commissioner Gary Bettman has stated, on several occasions, that the NHL currently has no plans to relocate any franchise. The league has certainly worked to keep Phoenix in Arizona. While the league may not be willing to take on any financial responsibility for Atlanta, it could turn its full attention to helping resolve the ownership situation once the Phoenix situation, job No. 1 right now, is settled. Or not. The league could give its blessing to the Spirit to open talks with True North.
It would be puzzling if Bettman and the league dedicated months to trying to resolve said situation in Phoenix and not have a strong interest in keeping a team in Atlanta, the No. 8 television market.
3. There may not be enough time to get a sale and relocation completed in time for next season. Time figures to be an issue to sell and move the Thrashers to Winnipeg – or another city. The sale of a professional sports team is not an easy, nor a quick, process. The length of time it has taken to resolve the Phoenix situation would leave a short turnaround. However, the framework possibly in place on a Phoenix-Winnipeg deal could be used to move things along with the Thrashers. A similar situation occurred when the Spirit purchased the teams and rights to the arena after negotiations with Dallas businessman David McDavid were not completed.
The sale of Phoenix would help recoup the losses, footed by the NHL owners, from rescuing the franchise from bankruptcy and running it for two seasons. However, the league may not be in a hurry to relocate to a Winnipeg. They could wait another year to see what happens in Phoenix.
If the Thrashers were to leave for Winnipeg, there would almost certainly need to be a conference re-alignment to accommodate the move.
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93 comments Add your comment
Cornbread
May 10th, 2011
11:31 am
Well in less than 24 hours, Viv has generated more hits and comments to one of his articles than he normally does for an entire week or two. Well done sir. Well done.
SportsFan
May 10th, 2011
12:22 pm
I am hearing it won’t be long, once the Glendale fiasco is amazingly approved by council, focus shifts to the ATL – and there are no local buyers.
GeorgiaDuck
May 10th, 2011
12:24 pm
Thrashers are not moving. http://www.twitlonger.com/show/acemct
Mitch4404
May 10th, 2011
12:47 pm
I Love the Thrashers and they deserve tto stay but I work in big Business and I have a bad feeling about the whole situation. It’s just a bad combination 1) a ownership group that is giving up on the team and wanting to sell.2)The NHL which has footed most of the bill for the Coyotes not really being interested in supporting another team. 3) And I hate to say it but short of a Save The Thrashers website and a few news articles the fanbase just doesn’t seem to be making any noise about this just thinking it will magically be resolved. As a Fanbase we need to put something together to get on the map and show a future owner that this is a good market to invest in. Winnipeg has taken Season ticket deposits for a franchise that isin’t there yet. Phoenix is battling within the government to work there issues out . What are we doing besides waiting and hoping. We need something grassroots to at least be heard.
52,53,54 Bossy's record is no more!
May 10th, 2011
12:52 pm
@Winnepeg Hockey Fan, I’m going to guess you aren’t from Winnipeg…otherwise you probably would have spelt it right.
52,53,54 Bossy's record is no more!
May 10th, 2011
12:54 pm
@Mitch4404, Winnipeg hasn’t taken season ticket deposits. Not yet, anyways.
Bo
May 10th, 2011
1:29 pm
Thrashers are as good as gone this summer. True North will move the team to Winnipeg and Atlanta may find they still have hockey when the AHL comes to town to replace the NHL. Tharshers will become the Moose and move to the Central Division while the Blue Jackets move to the South East. The AHL Moose will move to Saskatoon, Saskatchewan. It is a done deal.
Southernhockeyfan
May 10th, 2011
2:16 pm
Let’s quit blaming Chris V for this. He is a journalist, not a PR agent. Fact is this team is all but gone, We need a long-term commitment. Who cares if they are here just one more year. If that is the case, I would just as soon they go now, and maybe at the very least, we can get an AHL team. That’s better than nothing. God bless them, but I really can’t get excited about the Gladiators. I want to see a better hockey product than that just my opinion.
moriler
May 10th, 2011
2:31 pm
So humorous how all the Weeniepeg trolls come in saying “done deal” … and have been for the last three years. Every week it’s a new ‘done deal’, and the only thing that’s done is that they’re Staying Here. As always.
The NHL will not abandon major TV markets on a moment’s notice. Its goal is to return to prominence as the 4th major sport, and relocating teams to frozen outposts is not the way to do it, especially not when those teams have been mismanaged by their owners as badly as ASG has done. The Thrashers will be sold sometime in late summer or early fall, while the teams are still gearing up for the season, hopefully to an owner who gives a crap. There were five offers on the table for them within two weeks of the ASG announcing that since the lawsuit was concluded, they were finally able to actually sell the team. They will not be moving.
Phoenix has a much tougher way to go since it doesn’t have a line of buyers ahead of TNSE, just one. If Glendale ever bails out on them they’ll probably leave and go somewhere, but time will tell.
Frontman
May 10th, 2011
2:46 pm
Read an article in ESPN The Magazine which rated the top 130 sports franchises in the world ordered by the average player weekly salary. The Hawks came in at number 24. This is in the WORLD… ALL sports. So, the owners have decided to spend on basketball and not on hockey. For that, I wish nothing but abject misery on the Hawks. Please join me in rooting against them tonight, followed by a 40-point blowout loss at home in Game 6. B@st@rds… Mike Gearon, you and all of the ASG just suck. Period. End of story.
Bernard Shakey
May 10th, 2011
3:00 pm
A team is coming to the peg… i find it odd that no one in ATL (reporters) mention the NHL type activity taking place in wpg this last year. Wpg now has an NHL (paid in full) style arena, A BILLIONAIRE owner, expanded press-box; from 60 to 150; sports district development in downtown core, new sports station (owned by TNSE) and a recently completed 30 million MTSiceplex with 4 rinks, 2 of which are NHL sized… this is not for the MOOSE! AND, the NHL is not going to say goodbye to a BILLIONAIRE owner like TNSE… NHL can’t even find perspective buyers for their already failing franchises.
EA
May 10th, 2011
3:07 pm
Don’t kill the messenger. What message? Until Gary Bettman tells C Viv. or anyone else that the Thrashers are moving, these articles are worthless.
Wienerpeg Trolls
May 10th, 2011
3:07 pm
Wasn’t the big Wienerpeg “announcement party” supposed to be held a couple of Fridays ago? Yeah, I thought so…..
EA
May 10th, 2011
3:13 pm
Bernard, We have heard about that from several of your fellow citizens. We are happy for you all to have a team, just not ours.
Borncred
May 10th, 2011
3:17 pm
@Cornbread – - if CV’s words are too scary or distasteful just don’t comment, huh ? No need to disparage CV’s reporting or his self. There are other outlets reporting the same. Like you are “the man” with each pearl of wisdom you offer. * sigh *
Bernard Shakey
May 10th, 2011
3:17 pm
Al Strachon (Toronto Star – 2009) is the ONLY reporter who was correct. He stated during TSN Hotstove that TNSE was putting the final touches on the purchase of the ATL Thrashers and will be moved… BOOM, then PHX Bankruptcy emerged and stalled the whole process.
Winnipeg Jet
May 10th, 2011
3:18 pm
Just a matter of time…
The NHL Needs to Give Up it Warm Weather Pipe Dream – As mentioned in my post on attendance, warm weather teams are not well supported. Seven of the bottom ten teams in the NHL in attendance are located in the South or California. Four of the bottom 5 NHL teams in the television ratings are in warm weather cities (the Los Angeles Kings, Anaheim Ducks, Atlanta Thrashers and Florida Panthers). The only team in the bottom 5 of the NHL ratings not in a warm weather city are the Islanders. It will be interesting to see if the NHL thinks about moving any of these teams now that they have their lucrative new TV contract.
Hoof Arted
May 10th, 2011
3:20 pm
If I had a dollar for every time some PeggyTroll blogged that nonesensical “Thrashers to Winnipeg. Done Deal” line I’d be pretty rich.
Remember, there was supposedly a “done deal” two winters ago and an announcement was going to come right after the olympic break. How’d that pan out?
Also, this whole “local ownership” stuff is a red herring. Any new buyer/investor does not have to live in the Atlanta area. They just have to be committed to keeping them here.
Winnipeg Jet
May 10th, 2011
3:23 pm
Done deal…now arted gets his wings.
Some Guy
May 10th, 2011
3:29 pm
I would love to see Chris Vivlamore do some actual investigative reporting instead of re-writing the same article every month.
The vote in Arizona has very little to do with the Thrashers’ future. The NHL doesn’t want to go back to Winnipeg, even the players don’t. Gary Bettman has clearly stated there are no plans for relocation or expansion. If that weren’t the case, then we wouldn’t have this whole ordeal with Phoenix right now, the Penguins would be in Hartford or Hamilton, the Predators would be in Hamilton, the Coyotes would’ve been in Winnipeg or Hamilton 2 years ago, etc… RELOCATION IS NOT HAPPENING, PEOPLE.
The best thing that could possibly happen for Thrashers fans is someone buys the whole package who actually intends to field competitive teams. The worst thing is we have another year with ASG while we wait for a new owner.
Crass Bonanza
May 10th, 2011
3:32 pm
@Winnipeg Jet
“Four of the bottom 5 NHL teams in the television ratings are in warm weather cities (the Los Angeles Kings, Anaheim Ducks, Atlanta Thrashers and Florida Panthers).”
Maybe people in warmer weather cities have better things to do than stay inside watching television? Are you sure it’s just the NHL ratings that are lower in these cities? Because the level of support in LA is pretty high (Staples Center filled to 99.7% capacity last year).
Meanwhile, attendance was lukewarm in Dallas (81.3% full), Colorado (81.9%), New Jersey (83.8%) and Columbus (73.6%). Yet we constantly hear that hockey isn’t working in Atlanta and the Thrashers must be moved. Atlanta could easily be Nashville (94.3% full) with competent, committed ownership. It’s hard to sell a perenially bad product to a disillusioned fanbase.
Winnipeg Jet
May 10th, 2011
3:50 pm
It gets better yall…
There were 4 other teams that played before crowds of fewer than 10,000 fans – the Atlanta Thrashers (8,461), the Columbus Blue Jackets (9,128), the New Jersey Devils (5,329) and the Phoenix Coyotes (6,706).
EA
May 10th, 2011
4:21 pm
Winnipeg Jet–it is y’all. Shows how little you know about us wonderful southern people.
Far eagle
May 10th, 2011
4:22 pm
Could somebody explain to me why the other owners would carry operating expenses of another business? A TV deal doesn’t seem to cut it.
Coyotes will eventually move, but not until Bettman saves face and says he did all he could. Too bad, all of Glendale will be on welfare by then.
hockeyfan09
May 10th, 2011
4:26 pm
The thing that gets better and better is that despite all of these problems and issues, the league still hasn’t moved a team to the north pole, because the only people that want that are the people in winnipeg. Everyone knows u could sell out every game and still no one cares, because no one wants to relocate to canada. Stop complaining and just wait, u’ll get one of the 4 expansion teams the league plans in implement in the next 4 years, until then enjoy the 2 months of decent weather.
Crass Bonanza
May 10th, 2011
4:39 pm
@Winnipeg Jet,
Yes, it gets better.
Care to spin these attendance figures for us?
Winnipeg Jets, average home attendance (% full, based on NHL seating capacity of 15,393):
1990: 13,106 (85.1%)
1991: 12,931 (84.0%)
1992: 12,931 (84.0%)
1993: 13,550 (88.0%)
1994: 13,297 (86.4%)
1995: 13,013 (84.5%)
1996: 11,316 (73.5%)
Winnipeg as a “great hockey market” seems like revisionist history. The Jets couldn’t fill the building even 90% of the way, despite making the playoffs four times, in a supposed “hockey market” over the last 7 years of their existence.
You’re telling me Winnipeg will support a struggling team like the Thrashers, and better than Atlanta? Dream on.
Some Guy
May 10th, 2011
5:00 pm
Crass Bonanza, even if we leave off the 1996 attendance (the Jets’ move was announced prior to that season starting), it’s still a pathetic overall average attendance considering the capacity for the arena was 15,393. You’d think from what you read online these days, they would’ve had over-capacity attendance each year. Jets fans will find many ways to make excuses, but the fact remains: Winnipeg was not a viable NHL market, and never will be.
Winnipeg Jet
May 10th, 2011
5:09 pm
The Winnipeg arena was built in 1954 and was a dump. Original capacity around 10,000. Took forever to get beer. You would have never even set foot in the place.
Wienerpeg Trolls
May 10th, 2011
5:24 pm
Sums up Wienerpeg overall……
Brian west palm beach
May 10th, 2011
8:28 pm
The more trolls that get on here the more i wish for that lame city to be wiped off the map. Too bad its too cold for tornados up there.
B. Thenet
May 10th, 2011
9:05 pm
Viv has done well to cultivate a following in Winnipeg, show up on their radio stations, bash Kincade, watch the hits and twitter follows grow.
Tired of it already
May 10th, 2011
9:45 pm
Sounds like the city of Glendale is doing a lot to keep their team although they have a direct interest in keeping a tenant for their arena. But I haven’t heard that the city of Atlanta is doing anything to keep the Thrashers. I recall that Nashville pulled out all stops to keep the Preds. Is Atlanta headed for second rate status and gridlock on the downtown connector?
Food for thought
May 10th, 2011
11:36 pm
thrashers are sadly done
MrBill
May 11th, 2011
12:05 am
Atlanta Fans need to show up in the off season to keep the team here even if they didn’t show up in the regular season. They are voting in Glendale tonite. I googled the glendale city council and watched live the city council as debate began on voting for $25million to pay the NHL and if the vote is yes the team will stay and it would be bad news for us. Plenty of Coyote fans showed up to voice their support in keeping the coyotes. Atlanta fans need to start now in getting passionate in keeping the team here. Thrashers fans we need to stand up and make noise loud noise so that the NHL and any possible local buyer will hear us and will be sold on keeping the team here. If we don’t start now then the Thrashers will be on their way to Winnipeg as soon as the Stanely cup playoffs are over with. Don’t wait Atlanta now is the time to stand and makes some noise.
litz
May 11th, 2011
12:17 am
The vote apparently WAS a ‘yes’ vote.
Batten down the hatches, because ALL of the winnipegger ire is now gonna be focused this way.
jim
May 11th, 2011
12:34 am
Season ticket drive is needed ASAP.Local radio stations,TV,newspapers and businesses should get behind it as that will show that there is real interest in Atlanta.Still think the NHL will protect the 8th largest market in the USA but people have to step up and fast.
GlobalView
May 11th, 2011
2:48 am
Well, Atlanta….
We’ve secured our team here in Phoenix….
Prepare for an onslaught of Winniphlegm trolls that will drive you batty.
We’re with you boys, so check out AZ Central to see the screen names of all the fools that will soon be invading your site.
AtlFlamesFan
May 11th, 2011
7:39 am
Glendale vote is official:
http://bleacherreport.com/articles/697187-glendale-city-council-votes-assures-coyotes-at-least-one-more-year-in-the-desert
Food for thought
May 11th, 2011
10:38 am
Owners are rich enough to maintain teams but have no desire.
They have run thrashers into the ground
Levinson is a greedy little slimy pig and should be called out
As for chris, he gets it and knows the truth that these guys are selling us out…..February they ring the sense of urgency bell and claim they are trying to keep team in atl, not true they want the bid. Gary is just as bad he wants the 60mil which I’m sure really pisses off asg.
Sag does not want team here….they know if team stayed here with a classy owner then waddell and the rest of this low life organization would be put to shame as they start winning and people start coming
gojetsgo
May 11th, 2011
11:28 am
To puck like a porn star, there may only be 750,000 people in winnipeg total population, how ever when you compare the number of hockey fans between our city and yours we out number you by about 744,000. (don’t the thrashers give away 6000 tix a game just so the place isn’t empty during games) when it comes to hockey markets winnipeg is a metroplex while atlanta is a single farm house on a vast empty prairie. looks like atlanta is about to become a 2 time loser.
keepthecoyotes
May 11th, 2011
11:40 am
To globalview, I guess you and the other five coyotes season ticket holders will have a good chuckle over your whinniphlegm comment next season. Face it dude the desert dogs are dead, the only question is how much tax money will you guys waste before they go? what’s it upto about a quarter billion? oh well, a fool and his money…..
Garry Arthurs
May 11th, 2011
1:56 pm
Porn Star Puck doesn’t have a clue what he is talking about and putting down a great Canadian city like Winnipeg makes him even smaller.
The Thrashers are going to Winnipeg and the deal has been done and the only reason it has not been announced was to buy more time for the NHL to continue to hold the Glendale, AZ councils “feet to fire” to buy another subsidized year.
Betteman wants the Phoenix TV market but has given up on Atlanta as a TWO-TIME LOSER when it comes to NHL Hockey. The facts are simple…Hockey has never been part of the culture in the south..and never will.
johnmaciel
May 15th, 2011
6:29 pm
GET RID OF THESE MARKETS THAT CANT SUPPORT THERE TEAM STOP THE BLEADING IF YOU WANTED TO KEEP YOUR TEAM BUY SEASON TICKETS INSTEAD OF CRYING