Wayne Cubed Posted August 5, 2014 Posted August 5, 2014 Trust looks to be bending over backwards for the Toronto group to keep them in the game, why do that when you have a billion+ bid from a local guy --- trust is not looking good in this process ! And, before you say that it's to keep the bids higher, it sounds like they'll still be below Pegs --- I don't get it --- sit down and write the deal with Pegs and let's move on --- Pretty simple. It's a non-binding bid. You could bid 1 trillion dollars and the trust can't hold a bidder to it. There needs to be finalists with final bids. If Pegulas the only bidder and the trust lets him know that, he could turn around and lower his price.
TheFunPolice Posted August 5, 2014 Posted August 5, 2014 Pretty simple. It's a non-binding bid. You could bid 1 trillion dollars and the trust can't hold a bidder to it. There needs to be finalists with final bids. If Pegulas the only bidder and the trust lets him know that, he could turn around and lower his price. I agree... this is probably why they want Golisano to bid as well....
Rubes Posted August 5, 2014 Posted August 5, 2014 This whole "opening up the bidding process again" bit, especially to the JBJ group, is making this sound like the whole bidding thing is not going as planned, and they're likely concerned about the low number of bids submitted. It almost makes me wonder if the initial reports of "many people" expected to bid on the team were just intentional plants in the media to help drive up interest (and price). It also makes me think that the commitment to Buffalo is a big part of the deal (not just the current lease). Otherwise, I'd expect to see a ton of people bidding, since the Bills should represent one of the cheapest NFL teams to come to market.
CodeMonkey Posted August 5, 2014 Posted August 5, 2014 Haha! Morgan Stanley is hard up for bidders in a raging bull market. Go figure. With all the restrictions that are apparently in place it's no wonder.
GA BILLS FAN Posted August 5, 2014 Posted August 5, 2014 I agree... this is probably why they want Golisano to bid as well.... Sounds like a simple 5 minute call to Pegs, "Hey, Terry, you willing to make your $1.3B binding ?" -- I get it, I don't like it and I have a feeling Pegs doesn't either. The guy has played by the rules throughout this process and has ponied up the best first bid, let's hope the trust isn't biting the proverbial hand that's about to feed them.
eball Posted August 5, 2014 Posted August 5, 2014 Pretty simple. It's a non-binding bid. You could bid 1 trillion dollars and the trust can't hold a bidder to it. There needs to be finalists with final bids. If Pegulas the only bidder and the trust lets him know that, he could turn around and lower his price. Yup. Morgan Stanley likely already knows Trump won't get into a bidding war, so if JBJ is out and Golisano doesn't make a bid, Pegula will have them by the short hairs. This is all about Morgan Stanley saving face because they haven't really added anything to the picture so far. JBJ still ain't winning...which means the Bills are...stayin'
TheZone78 Posted August 5, 2014 Posted August 5, 2014 Pegula will have some competition from Trump and I think Pegula will raise the price just enough so that Trump will back out/or not match the bid. As it stands now this team is Pegula's if he wants it assuming no other bidders join the fray.
CodeMonkey Posted August 5, 2014 Posted August 5, 2014 Pegula will have some competition from Trump and I think Pegula will raise the price just enough so that Trump will back out/or not match the bid. As it stands now this team is Pegula's if he wants it assuming no other bidders join the fray. The trust won't sell to Trump as he would not be approved by the NFL. So if JBJ really is out, and Golisano does not join the party, then Pegula won't need to raise his bid. In fact, whatever his non-binding bid was, he could very well lower it as the trust has seemingly painted themselves into a corner.
zonabb Posted August 5, 2014 Posted August 5, 2014 (edited) This is a very well-orchestrated move by RW, the Trust and Morgan Stanley. The reality is, the trust seems to be acting in a manner that suggests the team is somehow restricted to be sold to a local buyer intent on keeping the team here. That's probably RW's wish and when reading the NDA closely, its very restrictive to a certain type of bidder... one with cash, which does two things... removes those who need financing and points toward a team keeping it local. Why? A local bid flsuh with case is the only one that can make it work due to the absence of debt service. No debt service means RWS works in the short term while working toward a a stadium resolution. The extra wiggle for a cash buyer also increase the actual bid price, which gets paid to the Trust whereas a lower bid requiring financing pays a lender the difference. Knowing that, MS and the Trust have then to develop a way to maximize the sale price with these restrictions and the only way is to drive up the bid price from outside bidder to get the local bid higher, returning the most money. These suggestions by the media that somehow Morgan Stanley has failed to drum up bidders (mostly in the media) is totally misplaced and ignorant. They don't need a large number of bidders, the need one out of towner to scare the local bidder and drive the final sale price up. To suggest that MS is inept is laughable when coming from the media. You can bet that Pegula will always get the chance to match a higher bid because it does the two things most important to the trust 1) ensures the team stays and 2) maximizes the final price. That what a bid and negotiation is because the "binding final bid" or whatever they are calling it, is a minimum, not a maximum. They can go back to T-money and ask him to increase his bid. Stayin. Edited August 5, 2014 by zonabb
Kirby Jackson Posted August 5, 2014 Posted August 5, 2014 The trust won't sell to Trump as he would not be approved by the NFL. So if JBJ really is out, and Golisano does not join the party, then Pegula won't need to raise his bid. In fact, whatever his non-binding bid was, he could very well lower it as the trust has seemingly painted themselves into a corner. That is exactly why we should all expect new people to enter the bidding.
TheFunPolice Posted August 5, 2014 Posted August 5, 2014 all of the restrictions about not being able to move the team, coupled with Pegula's high bid, will likely keep a lot of groups away. Are you really going to big 1.3 billion+ to beat out Pegula to be the guy to keep the team in WNY? From a cold hard financial standpoint it doesn't make as much sense as just buying another team in a direct private sale for less $$ that you can do more with depending on the lease situation there.
l< j Posted August 5, 2014 Posted August 5, 2014 Yup. Morgan Stanley likely already knows Trump won't get into a bidding war, so if JBJ is out and Golisano doesn't make a bid, Pegula will have them by the short hairs. This is all about Morgan Stanley saving face because they haven't really added anything to the picture so far. JBJ still ain't winning...which means the Bills are...stayin' Can we assume that Morgan Stanley is being paid a percentage of the sale price, as well? Which would definitely impact its behavior.
TheZone78 Posted August 5, 2014 Posted August 5, 2014 The trust won't sell to Trump as he would not be approved by the NFL. So if JBJ really is out, and Golisano does not join the party, then Pegula won't need to raise his bid. In fact, whatever his non-binding bid was, he could very well lower it as the trust has seemingly painted themselves into a corner. Not sure if I agree. Steve Tisch said he had questions for Trump last week before he'd vote on him. You've got the Indy owner in rehab and now Jerry Jones taking pretty brutal pictures with young women. Don't think they would write him off at all. The brilliance of Golisano to stand by and watch this unfold cannot be understated. Now I think you'll have additional bidders come out of the wood work. If they don't Pegula and Trump can bid lower. That is exactly why we should all expect new people to enter the bidding. Agreed 100%
thebandit27 Posted August 5, 2014 Posted August 5, 2014 Sounds like a simple 5 minute call to Pegs, "Hey, Terry, you willing to make your $1.3B binding ?" -- I get it, I don't like it and I have a feeling Pegs doesn't either. The guy has played by the rules throughout this process and has ponied up the best first bid, let's hope the trust isn't biting the proverbial hand that's about to feed them. I feel pretty confident that El Pegual isn't sweating the process.
kasper13 Posted August 5, 2014 Posted August 5, 2014 Resumbmitting an initial bid. That's garbage. Break the NDA all over the place and it's no big deal. That's garbage. Why does JBJ and Toronto bother when they don't have enough money and are just very unwelcome to begin with? The whole thing is really all just speculation but it sounds like there is one and only one serious, legitimate bid for the team and they meet all of the conditions and that's the Pegula bid. They have the money. They have kept quiet. They will pay all in cash upfront. Will their bid be the highest at the end of the day? Absolutely. Who is trying to drive up the price and why? To pretend there was more interest than there is? Who cares? Why are they bending over backwards and kissing Bon Jovi's and Toronto's ass all through the process when they can't win? Makes zero sense. The whole process has been a big clusterface. Continuing to drag out this charade is just pointless and it's aggravating to Bills fans. If it were me, I'd fire Morgan Stanley. I'd have an auction Friday. Highest bid, pay in cash and the team is yours. Minimum bid is $1.25 billion.
CodeMonkey Posted August 5, 2014 Posted August 5, 2014 That is exactly why we should all expect new people to enter the bidding. Yeah but who besides Golisano would be interested given the apparent locality restrictions. If I'm not from the area I'm not going to bother bidding on a team that is shackled to Buffalo. And if I did, my bid would be very low for the same reason. Pegula could end up stealing the team for a very low price.
TheFunPolice Posted August 5, 2014 Posted August 5, 2014 that all sounds well and good but you need leverage in any negotiation.... The trust has to play hard to get with Pegula. You never want to appear to be too eager to make any business deal. You want it to seem like you have plenty of options so that the other side gives more.
CodeMonkey Posted August 5, 2014 Posted August 5, 2014 (edited) all of the restrictions about not being able to move the team, coupled with Pegula's high bid, will likely keep a lot of groups away. Are you really going to big 1.3 billion+ to beat out Pegula to be the guy to keep the team in WNY? From a cold hard financial standpoint it doesn't make as much sense as just buying another team in a direct private sale for less $$ that you can do more with depending on the lease situation there. That assumes Pegula has a high binding bid. I wouldn't count too heavily on that. The restrictions would keep most away though. Edited August 5, 2014 by CodeMonkey
Kirby Jackson Posted August 5, 2014 Posted August 5, 2014 Yeah but who besides Golisano would be interested given the apparent locality restrictions. If I'm not from the area I'm not going to bother bidding on a team that is shackled to Buffalo. And if I did, my bid would be very low for the same reason. Pegula could end up stealing the team for a very low price. I suspect that there are still others. The location isn't scaring people off because their revenue numbers are strong. A lot of other groups are looking at this as their opportunity to buy an NFL team (which rarely hit the market).
Gugny Posted August 5, 2014 Posted August 5, 2014 Resumbmitting an initial bid. That's garbage. Break the NDA all over the place and it's no big deal. That's garbage. Why does JBJ and Toronto bother when they don't have enough money and are just very unwelcome to begin with? The whole thing is really all just speculation but it sounds like there is one and only one serious, legitimate bid for the team and they meet all of the conditions and that's the Pegula bid. They have the money. They have kept quiet. They will pay all in cash upfront. Will their bid be the highest at the end of the day? Absolutely. Who is trying to drive up the price and why? To pretend there was more interest than there is? Who cares? Why are they bending over backwards and kissing Bon Jovi's and Toronto's ass all through the process when they can't win? Makes zero sense. The whole process has been a big clusterface. Continuing to drag out this charade is just pointless and it's aggravating to Bills fans. If it were me, I'd fire Morgan Stanley. I'd have an auction Friday. Highest bid, pay in cash and the team is yours. Minimum bid is $1.25 billion. Admittedly, I don't know squat about the process. Perhaps this is a case of CYA so the JBJ team can't come back later and claim they weren't given a "fair shot" to correct its initial NDA errors. This way, they play the game; let them resubmit; only to eventually tell them to go !@#$ themselves and award the team to Pegula. They may just be saving themselves possible future headaches by allowing this re-submission.
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