Chuck Greenberg won't bid on Stars

Former Texas Rangers CEO Chuck Greenberg will not be bidding on the Dallas Stars. Greenberg made his intentions known this evening, posting on Twitter:

“Disappointed but not bidding on Stars. New long term TV deal was key to turnaround plan. Got very close but could not get agreement.”

Greenberg, in a text message, explained a little more about his decision.

"Long term TV deal was essential to turnaround plan. Committed to invest heavily and immediately in championship roster and first class fan experience," he said. "Tough to make those long term commitments without matching security on local media deal. Really disappointed.

"No doubt we could turn things around but without local media security it's like constructing a building atop an unstable foundation."

Greenberg’s announcement comes as a key deadline in the sale of the Dallas Stars will come this weekend. Anyone interested in topping the stalking horse bid of Vancouver businessman Tom Gaglardi must have a bid in by 3:00 p.m. (Central Time) on Saturday.

Saturday’s deadline comes 30 days after bidding procedures were approved in a Delaware bankruptcy court. Although the deadline is Saturday it may not be known until Monday if anyone else has stepped forward.

Greenberg was seen as the leading candidate to jump into the mix and with him deciding not to bid, it appears to clear the way for Gaglardi to complete the purchase of the Stars.

If another bidder did step forward, and at this point it appears unlikely, his bid would have to be approved by lenders and the NHL. That could set the stage for an auction at a law office on November 21.

With or without an auction, a hearing is scheduled in a Delaware bankruptcy court for November 23 that would, according to court documents, “involve approval of the Sale, and confirmation of the Debtors’ prepackaged Plan and any objections thereto and to consider any other matter that may properly come before the Bankruptcy Court.”

There is a chance the court could move up the process if there are no bidders besides Gaglardi.

After that it would take a few days to close the sale and the sale would also need approval from the NHL Board of Governors.