WGRZ Piece on the Sale, Sounds like the Trust wanted a Bidding War

[BuffaloRebound]

I know Pegula is uber-rich and is willing to spend, but every $100M the trust squeezes out of the guy is $100M he doesn't have to spend on the team and the city of Buffalo, after all, even billionaires have a limit. While the trust is completely within their rights to get as much as they can for the team, greed doesn't look good on anyone, including Ralph's heirs. I know, you'll post back and ask "what would I do"; well, I'll tell you. If I'm Mary Wilson, I call Pegs and end this. I accept the $1.3B bid, which is 50% over the stated value and ask him to make it binding. I thank him for his commitment to Buffalo and I end this process with grace and preserve Ralph's legacy. Next, I write a check to Pegula for $200M (an investment back in Buffalo) for the naming rights to the new stadium, when it's built so that it is named "Ralph Wilson Memorial Stadium"; why, because as much as the Wilson's gave WNY, WNY gave them back that much and a whole lot more. Come on Mary, end this !

 

+1000. The problem is that Morgan Stanley will continue to drive the price up until the trust tells them otherwise. It's their job. Time for trust to lock up a deal with Pegula and end the nonsense. It's becoming a circus with Trump and Bonjovi.

[Augie]

Yes the trust has a right to grab the highest bid and the public has a right to their opinion regarding the Wilsons and their estate.

Go take the highest bid worth more money than you will ever be able to spend in a lifetime at the price of what? So that you can lose much of the public opinion towards you and your hubbys memory.

 

I really don't think that's the case at all. (Not the right to an opinion part - that's 100% true!) They've made it clear they want the team to stay in WNY. They've already given up maybe a half of a billion dollars! The buy out clause on the lease alone is $400 million. They have given up their bargaining position but are still trying to do the best they can given the handicap they have imposed upon themselves. I can't fault anyone for that. I think if anything it enhances the legacy. But, hey, that's just me.

[Heitz]

Pretty thorough article in the Toronto Sun: http://www.torontosun.com/2014/08/05/toronto-group-bidding-on-bills-allowed-to-submit-higher-first-bid

 

Of note:

 

"Bon Jovi would be principal owner. Constituted in that manner, sources have told QMI Agency the group cannot come close to matching even the reported initial bid of $1.3 billion submitted last week by Pegula, the cash-flush oil-and-gas multi-billionaire who already owns the NHL's Buffalo Sabres.

 

Two QMI Agency sources said Pegula indeed bid about $1.3 billion."

 

And

 

"While some reports last week said the Bon Jovi/Toronto group had bid $1.2 billion, the amount was considerably less, perhaps under $900 million. Their ultimate bid limit is believed to be somewhere approaching $1.2 billion."

[Augie]

 

 

+1000. The problem is that Morgan Stanley will continue to drive the price up until the trust tells them otherwise. It's their job. Time for trust to lock up a deal with Pegula and end the nonsense. It's becoming a circus with Trump and Bonjovi.

I think the offers will go up until the offers stop going up, not until the trust says stop. The trust put the upper limit on the price with the (hopeful) WNY preference/lease restrictions. Time will tell said the nervous but cautiously optimistic fan.

 

And Trump is, by definition, a walking circus. Amusing, as someone else's owner maybe, but please God, not OURS.

[Peter]

I am with you. If Pegula wins, we all win. However it plays out though Inam confident that we won't be losing our team. I happen to like Pegula the most of the names that I have heard like everybody.

Exactly. If the Pegulas win, we all win. It will be a very happy and significant day for all of us who love Buffalo and the Bills.

 

As an aside, if I recall correctly, the owners meeting is October 8th. I was thinking about flying up to Buffalo for the next Sabres and Bills game to be part of what I anticipate is going to be a huge celebration.

[BuffaloRebound]

I think the offers will go up until the offers stop going up, not until the trust says stop. The trust put the upper limit on the price with the (hopeful) WNY preference/lease restrictions. Time will tell said the nervous but cautiously optimistic fan.

 

How can someone be considered a serious bidder if they can't even get a bid in on-time? If all reports are true of only 3 bidders by the original deadline, 2 of which seem to be more of the clown-show variety, stop the charade and start exclusively negotiating with Pegula. Trust can always decide not to sell the team if they feel Pegula is squeezing them because there aren't any other serious bidders. Seems like at this point it's Morgan Stanley trying to justify their value to the trust or possibly NFL office involvement.

[Augie]

Morgan Stanley surely doesn't want egg on their face, but in the HUGE picture, it matters little to Morgan Stanley. If they can get a big hitter like Golisano or an unnamed billionaire in to push up the price they win, regardless of bid date. That's a date they created, nothing binding. If they can't, they can always blame the restrictions of the trust. Morgan Stanley still gets paid. It would be irresponsible to not turn over every stone. I want this over as much as anyone, but billion dollar plus transactions are not like buying a new car.

 

 

 

How can someone be considered a serious bidder if they can't even get a bid in on-time?

 

If someone steps up tomorrow and bids $2 billion, they will be considered a serious bidder. If you have the cash, timing is flexible.

[Tyrod's Tailor]

Morgan Stanley surely doesn't want egg on their face, but in the HUGE picture, it matters little to Morgan Stanley. If they can get a big hitter like Golisano or an unnamed billionaire in to push up the price they win, regardless of bid date. That's a date they created, nothing binding. If they can't, they can always blame the restrictions of the trust. Morgan Stanley still gets paid. It would be irresponsible to not turn over every stone. I want this over as much as anyone, but billion dollar plus transactions are not like buying a new car.

 

If someone steps up tomorrow and bids $2 billion, they will be considered a serious bidder. If you have the cash, timing is flexible.

 

As crazy as this might sound this is not all that large of a deal for Morgan Stanley. They certainly would like good publicity but I doubt anyone but Bills/Buffalo diehards are following this deal too closely on a day to day basis.

[BuffaloRebound]

Morgan Stanley surely doesn't want egg on their face, but in the HUGE picture, it matters little to Morgan Stanley. If they can get a big hitter like Golisano or an unnamed billionaire in to push up the price they win, regardless of bid date. That's a date they created, nothing binding. If they can't, they can always blame the restrictions of the trust. Morgan Stanley still gets paid. It would be irresponsible to not turn over every stone. I want this over as much as anyone, but billion dollar plus transactions are not like buying a new car.

 

 

 

If someone steps up tomorrow and bids $2 billion, they will be considered a serious bidder. If you have the cash, timing is flexible.

 

Completely disagree on the last part. With a 95 year-old owner, anyone serious about bidding on Bills has known this day was coming for years. If you couldn't get your act together by the Trust's deadline, can't see how you'd be considered a serious 'keeping-the-Bills-in-WNY' bidder.

[Augie]

 

 

As crazy as this might sound this is not all that large of a deal for Morgan Stanley. They certainly would like good publicity but I doubt anyone but Bills/Buffalo diehards are following this deal too closely on a day to day basis.

Completely agree: this is just another grain of sand on the beach for a Morgan Stanley. More high profile than most grains off sand, but still that's what it is.

 

 

 

Completely disagree on the last part. With a 95 year-old owner, anyone serious about bidding on Bills has known this day was coming for years. If you couldn't get your act together by the Trust's deadline, can't see how you'd be considered a serious 'keeping-the-Bills-in-WNY' bidder.

My point is if you have the cash and are willing to commit to WNY, they don't care if it's last week or two weeks from now. They are not required to play by any schedule we know of. There could be deadly serious potential owners they've known about for years who just haven't stepped forward yet in this "non-binding" phase. That doesn't mean they couldn't get their act together. It's not a fifth grader who didn't have his math homework done. These people are smart and wealthy and have a reason for everything they do (or don't do).

Edited August 6, 2014 by Augie

[BuffaloRebound]

As crazy as this might sound this is not all that large of a deal for Morgan Stanley. They certainly would like good publicity but I doubt anyone but Bills/Buffalo diehards are following this deal too closely on a day to day basis.

 

Maybe not for Morgan Stanley as a whole, but it's definitely important for their Sports Advisory group. They are not looking good so far when they could only muster 3 bids, 2 of which violated their own Non-Disclosure Agreement, and now they had to extend their deadline. Any serious Bills fan could have come up with a list of people both wealthy enough to pay over $1B and interested in keeping team in WNY. Public nature of this bidding process has basically eliminated BonJovi's group and Trump is hard to to take serious. By their own doing, Morgan Stanley and the Trust have given Pegula the upper hand in any negotiation for the team. He's got them by the balls now.

[Tyrod's Tailor]

Maybe not for Morgan Stanley as a whole, but it's definitely important for their Sports Advisory group. They are not looking good so far when they could only muster 3 bids, 2 of which violated their own Non-Disclosure Agreement, and now they had to extend their deadline. Any serious Bills fan could have come up with a list of people both wealthy enough to pay over $1B and interested in keeping team in WNY. Public nature of this bidding process has basically eliminated BonJovi's group and Trump is hard to to take serious. By their own doing, Morgan Stanley and the Trust have given Pegula the upper hand in any negotiation for the team. He's got them by the balls now.

 

that's true. Those guys are seeing their bonus flash before their eyes, hence all of this talk about new entrants/resubmissions.

[Augie]

 

 

that's true. Those guys are seeing their bonus flash before their eyes, hence all of this talk about new entrants/resubmissions.

A few points on another $100 million or so is not a bad thing. It's not like a house that just may not sell for a year or two. People want into the club. The question is what's the upper limit in WNY.

Edited August 6, 2014 by Augie

[BuffaloRebound]

A few points on another $100 million or so is not a bad thing. It's not like a house that just may not sell for a year or two. People want into the club. The question is what's the upper limit in WNY.

 

Right now, it looks like upper limit is whatever Pegula feels inclined to bid. As a Bills fan it would give me a heart attack, but part of me would love to see Pegula pull his offer. As the wealthiest (by far) person with WNY ties, once he decided he wanted Bills he was always going to be the choice. Trust/MS should have set the price tag at $1.2-1.3B and went to Pegula, instead of this farce auction process where now it's Pegula bidding against himself.

[TheFunPolice]

People like Pegula don't get where they are by making bad business deals.

 

How do you think he ended up owning all of those drilling rights to profit from them? Being a few steps ahead of everyone else.

 

I think the trust wants to avoid a scenario where he can dictate price, because if he can he could easily knock a few hundred million off the bid price.

[ALF]

I know Pegula is uber-rich and is willing to spend, but every $100M the trust squeezes out of the guy is $100M he doesn't have to spend on the team and the city of Buffalo, after all, even billionaires have a limit. While the trust is completely within their rights to get as much as they can for the team, greed doesn't look good on anyone, including Ralph's heirs. I know, you'll post back and ask "what would I do"; well, I'll tell you. If I'm Mary Wilson, I call Pegs and end this. I accept the $1.3B bid, which is 50% over the stated value and ask him to make it binding. I thank him for his commitment to Buffalo and I end this process with grace and preserve Ralph's legacy. Next, I write a check to Pegula for $200M (an investment back in Buffalo) for the naming rights to the new stadium, when it's built so that it is named "Ralph Wilson Memorial Stadium"; why, because as much as the Wilson's gave WNY, WNY gave them back that much and a whole lot more. Come on Mary, end this !

 

 

I agree completely, leave Pegula some money to chip in for a new stadium when needed

[bananathumb]

People like Pegula don't get where they are by making bad business deals.

 

How do you think he ended up owning all of those drilling rights to profit from them? Being a few steps ahead of everyone else.

 

I think the trust wants to avoid a scenario where he can dictate price, because if he can he could easily knock a few hundred million off the bid price.

 

You are right. But it's too late. Pegula IS gonna dictate the price and it won't be a deal; it'll be a STEAL!

[RJ (not THAT RJ)]

So, does the fact that the trust clearly is insisting on some kind of at least medium commitment to keeping the team in Buffalo going to get any of the chicken littles who ran around saying "Ralph did nothing to keep the team in Buffalo! They will sell to the highest bidder and move the team!" to admit they were wrong?

[8-8 Forever?]

They want to drive the bids as high as they can but that doesn't necessarily mean that it will go to the highest bidder. In addition, there are more parties out there but there isn't a ton of advantages to submitting a preliminary bid. There were people that were going to try to gauge the preliminary bids and see where the process has gone. I would be surprised if we don't see more groups emerge. We have 2 loud mouth groups in Trump & JBJ so they want everyone to know that they are involved. In addition, Pegula has long been (and still is) considered the favorite. When he makes a move people will cover it. That doesn't mean that it is only those 3.

My bounce on this is very simple: Ralph wanted an auction process for the team, however he did an awesome job of setting things up where the team could not be moved from WNY. The league is on board with this idea, all they want is a new stadium from the state/county and higher ticket prices and therefore revenue sharing for visiting teams that comes with it. This has resulted in a dramatic lowering of interest and the shortage of interested bidders likely reflects this. When it comes to the Bills, potential owners are like top free agent players and coaches: they are not super interested in running their franchise, both for personal and financial reasons inWNY unless they are from there or have some ties to the area. So the good news is the team stays, but the franchise value, like the roster, coaches and front office , are "middle of the road", not title contender material , as always. On balance, I guess that's as good as it can get: "a .500 record" or otherwise stated in terms of win/lost record: 8&8 Forever.

[RJ (not THAT RJ)]

Every silver lining has a cloud, huh, 8and8?