"No Negative Financial Situation" to affect ability to extend McBeane

[Buftex]

11 hours ago, PromoTheRobot said:

 

Unlike the NFL, the NHL values the Sabres in Buffalo. That said, there are interests that want a second NHL team in the Toronto area. Don't give then an opening.

If that is true Promo (and I am not necessarily disagreeing with you) do we know if the NHL gave any thought to throwing the Pegulas a bone, and using Harbor Center/Keybank arena as one of the hub cities for their proposed return for the 2019-20 playoffs?  It would seem to have an ideal set up...and we know Buffalo is a strong American NHL city.  

[Buftex]

10 hours ago, Doc said:

Given the choice between the two, I’d have no problem with them selling the Sabres. With the caveat that the new owner(s) keep the team in Buffalo. But will anyone honor that? I know that Pegulas will.

That is a pretty big caveat.  

I don't like this news, and the state of the Sabres is depressing... but some of the comments I see in reference to the Pegulas' ownership of the Sabres (not necessarily here, but on other social media platforms) seems pretty short sighted.  They have made some bad decisions, and spent unwisely...but they have always had their heart in the right place..and that matters to me. What happened this week with the mass firings looks bad (especially the Rochester situation..that was going well), but are in some ways understandable.  Virtually every money stream the Pegulas have has been very adversely affected by COVID19. The Sabres, who won't be playing for almost another year most likely, are a financial drain on them (no matter who is to blame for their foibles) when they can't afford it.  

[BillsFan17]

On 6/16/2020 at 8:00 PM, Lurker said:

NFL = Money Machine

 

NHL = Garage League

Why people don't see this exact point. There is not a single NFL team valued under a billion dollars. While there is only four, maybe five teams in the league that are valued at just a little over a billion.

 

Funny part is, the NY Rangers are the highest valued team in the NHL and they wouldn't make the NFLs list.

[RoyBatty is alive]

On 6/16/2020 at 5:27 PM, CNYfan said:

I read in Barron's a few weeks back that Jerry Jones' energy company (CRK a Texas Oil Company) was a total flop.  With annualized returns of -15% over the past 15 years (the exact figures escape me but one can probably find the article).

The bonds were below junk grade, but the company was bailed out by asset purchases by the Federal Reserve. 

 

There's a guy who needs a taxpayer bailout. 

 

 

 

What?

 

You do realize Jones bought CRK a few years ago, not 15 year ago.

 

And no the Bonds are not below junk grade, just two days ago they just raised $500 in a new debt offering upsized due to demand from $400 million and S&P just placed Comstock ratings on watch with positive indication.  

[RoyBatty is alive]

On 6/16/2020 at 5:33 PM, zonabb said:

zero debt and being asset owners (in oil/gas) means they are on sound financial ground all around. Let's be honest, the Bills make money. And they paid cash for them and have zero stadium debt (why I have long stated and will continue to state that they are not in favor of a new stadium carrying that debt... imagine no fans this year and what that would mean if they were carrying $500M in stadium debt). Bills are fine and will always be fine in this market, it's just that the greedy owners like Jones and Kraft aren't fine with it, they want more profit. But they are profitable. 

 

I think they made a major mistake trying to get into other areas of sports with PS&E. They feel like deep pockets make them capable of anything but as I have also stated, this is a guy who is a geologist/rock jockey who was smart and made billions. She's a Houghton College grad who was waiting table in Olean and about to leave to be a fisherwoman in Alaska before the golden goose came along. She worked in oil and gas and she's in over head in sports and entertainment. PS&E was a loser and they apparently lost big, but again, just because you have billions doesn't guarantee success in other business ventures outside the one you made your millions. And by many accounts, she's not a leader or visionary, just a rich entitled micromanager. 

 

The Sabres are a problem, and although clearly a standalone LLC, they must be looking at the Bills as a way to keep the Sabres afloat and hopefully still profit. I wouldn't be the least bit shocked to find out that they're interest in the Bills was as a way to offset losses with the Sabres, who every single owner has claimed is a loser.

 

Smart move for the same reasons as above... they have zero debt on either team or facility, which minimizes any losses.  

 

In the end, they are sitting on a football team that has appreciated in value significantly since they bought it, far more than oil and gas has. And when oil and gas inevitably increases in price due to global conflict and geopolitics or pure supply and demand, the Pegulas will drill baby drill and make their billions. 

 

In the end, all is well for them and always will be. 

 

 

 

 

That is certainly not true with oil sub $40 and nat gas below $2.  Depending upon lifting costs and G&A, royalties etc for every cubic foot of gas or barrel of oil they produce they could be losing money, big time.

[oldmanfan]

4 minutes ago, RoyBatty is alive said:

 

 

That is certainly not true with oil sub $40 and nat gas below $2.  Depending upon lifting costs and G&A, royalties etc for every cubic foot of gas or barrel of oil they produce they could be losing money, big time.

Didn’t sell the vast majority of those interests? 

[machine gun kelly]

People interested in this topic should read the recent article, 20 minutes ago from the Olean Times (Chuck Pollock) about the Pegulas.  I liked it.  Way too much Kim bashing.  I have someone close to me who works for the team who said very positive things about her as a boss.

[RoyBatty is alive]

Just now, oldmanfan said:

Didn’t sell the vast majority of those interests? 

 

I dont know their finances but they sold a ton to Aubrey McCelenon at American Energy and before that famous for Chesapeake Energy.  Aubry had enough and committed suicide a few years ago and Chesapeake just went bankrupt following suit of American Energy.

[Buffalo_Stampede]

Yeah but do Beane and McDermott want to remain? Imagine they win this year. All of a sudden they become a power couple. Could go anywhere for top price. Better lock them up quickly Pegula.

[PromoTheRobot]

9 hours ago, Buftex said:

If that is true Promo (and I am not necessarily disagreeing with you) do we know if the NHL gave any thought to throwing the Pegulas a bone, and using Harbor Center/Keybank arena as one of the hub cities for their proposed return for the 2019-20 playoffs?  It would seem to have an ideal set up...and we know Buffalo is a strong American NHL city.  

 

I thought Buffalo would be an excellent NHL hub. They have 3 NHL rinks all in one location. All with the necessary wiring for media, hotels and foodservice, plus world-class medical facilities just up Main St. But I've not heard Buffalo mentioned as a potential site.

 

I'm going to say this just so you know where I stand. Saving the Bills gives the Pegulas a lifetime pass in my book. The Bills were as good as gone if not for them. I like the Sabres but I love the Bills, and they're still here. Better yet, they're good again. So they can royally eff-up the Sabres and I will still stand by them for the Bills. That's just my opinion.

Edited June 18, 2020 by PromoTheRobot

[SCBills]

21 minutes ago, Buffalo_Stampede said:

Yeah but do Beane and McDermott want to remain? Imagine they win this year. All of a sudden they become a power couple. Could go anywhere for top price. Better lock them up quickly Pegula.

 

I'm not really worried about this at all, tbh

[Doc]

9 hours ago, Buftex said:

That is a pretty big caveat.  

I don't like this news, and the state of the Sabres is depressing... but some of the comments I see in reference to the Pegulas' ownership of the Sabres (not necessarily here, but on other social media platforms) seems pretty short sighted.  They have made some bad decisions, and spent unwisely...but they have always had their heart in the right place..and that matters to me. What happened this week with the mass firings looks bad (especially the Rochester situation..that was going well), but are in some ways understandable.  Virtually every money stream the Pegulas have has been very adversely affected by COVID19. The Sabres, who won't be playing for almost another year most likely, are a financial drain on them (no matter who is to blame for their foibles) when they can't afford it.  

 

Yup.  I have no idea why the Sabres suck since they've spent money everywhere to try and make things better.  And I look at how everyone wanted Mike Babcock over Phil Housley a few years ago and he chose Toronto...and is now unemployed despite the wealth of talent that team had.

 

If the Bills didn't have success, I'd concerned.  And again I'd have no problem with them selling the Sabres and focusing on the Bills, but only if the Sabres are assured of not leaving town.

 

56 minutes ago, Buffalo_Stampede said:

Yeah but do Beane and McDermott want to remain? Imagine they win this year. All of a sudden they become a power couple. Could go anywhere for top price. Better lock them up quickly Pegula.

 

They'll pay them.  And what better place to try and get a team their first SB win?

[SCBills]

47 minutes ago, Doc said:

 

Yup.  I have no idea why the Sabres suck since they've spent money everywhere to try and make things better.  And I look at how everyone wanted Mike Babcock over Phil Housley a few years ago and he chose Toronto...and is now unemployed despite the wealth of talent that team had.

 

If the Bills didn't have success, I'd concerned.  And again I'd have no problem with them selling the Sabres and focusing on the Bills, but only if the Sabres are assured of not leaving town.

 

 

They'll pay them.  And what better place to try and get a team their first SB win?

 

I, admittedly, don't follow hockey so i'm not sure what's going on with the Sabres but your point about Bills success is spot on.  They clearly seem to know what they're doing on the football side..  I don't know too many teams people would choose as having a brighter future over the Buffalo Bills right now, especially if Allen can continue to develop.

[nucci]

15 minutes ago, SCBills said:

 

I, admittedly, don't follow hockey so i'm not sure what's going on with the Sabres but your point about Bills success is spot on.  They clearly seem to know what they're doing on the football side..  I don't know too many teams people would choose as having a brighter future over the Buffalo Bills right now, especially if Allen can continue to develop.

It's not that clear...they were screwing everything up until McDermott and Beane were hired

[SCBills]

1 hour ago, nucci said:

It's not that clear...they were screwing everything up until McDermott and Beane were hired

 

I'd say thats a pretty big deal, no?....  They're terrible, except for the fact that shortly after they took over, they brought in one of the better GM/HC tandems in the league and invested heavily into facilities.

[Doc]

1 hour ago, nucci said:

It's not that clear...they were screwing everything up until McDermott and Beane were hired

They were screwing everything up?

[purple haze]

On 6/16/2020 at 5:00 PM, Lurker said:

NFL = Money Machine

 

NHL = Garage League

Exactly. I know hockey has fans all over the world, but in America it is a niche sport.  The money will never be the same as the NFL or NBA.  Probably MLB too, although that league is doing its best to marginalize itself.  MLS might be as popular as the NHL.

[Penfield45]

On 6/16/2020 at 5:07 PM, Mr. K said:

If you missed the Sabres Presser today (I know not all Bills fans are sabres fans) they sounded like keeping the Sabres a float was a challenge and talking about how his oil/energy business "isnt doing well but at least were not in debt." I hope the Sabres level of fragility does not seep down to one bills drive. 

 

I think Pegula will sell the sabres and focus on the Bills. it was a mistake from the start to buy both teams. 

Edited June 18, 2020 by Penfield45

[Bob in STL]

The Pegula's mean well and have done some great things for Buffalo.  However, Buffalo would be better off with more diverse Sports Ownership.   Looking at PSE (sports, entertainment, restaurants, hotels, bars) and the energy business -  the Covid driven adverse impacts on the Pegula's is incredible.

 

It would like to see them sell the Sabres to a local ownership group.  They are struggling in the NHL.  They don't fit in, and going on 10 years and they are not getting any help from the league to turn things around. 

[PromoTheRobot]

If I asked you in 2014 after Ralph passed if you'd take a new Bills owner that would make some bad decisions but would absolutely keep the team here, would you have taken it?