TORONTO -- An investment firm and a sports advisory company reportedly made a joint proposal to buy all 30 NHL teams for as much as $3.5 billion.
The two Boston companies were invited by NHL commissioner Gary Bettman to present the highly unusual offer, the Toronto Star and Globe and Mail reported Thursday. Bain Capital Partners LLC and Game Plan LLC made their pitch Tuesday in New York to NHL owners, whose season has been shut down by a lockout.
Game Plan chairman Robert Caporale confirmed to WBZ radio in Boston that the companies had offered more than $3 billion.
"It's taking the National Hockey League and its 30 teams and operating it as any large corporation does with each team
essentially being a division of one company," Caporale said. "We
would keep in place team management, team presidents, the GMs. They would be completely autonomous."
Caporale described team owners as "very attentive" but
questions the level of support.
"I don't think it's realistic, and I don't think there's much interest, and I know there's no interest on the part of the
Bruins," Bruins owner Jeremy M. Jacobs said. "And I think it
takes 30 [team owners] to do it."
Bain Capital spokesman Sam Hollander declined to immediately comment Thursday to The Associated Press.
The NHL, which because of its ongoing player lockout recently became the first major North American pro sports league to cancel an entire season, has said its teams have lost a collective $500
million over the past two seasons.
Before the work stoppage, the total value of the 30 NHL
franchises was an estimated $4.9 billion, according to Forbes
Magazine. The Detroit Red Wings topped the list at $266 million,
with the Edmonton Oilers last at $86 million. The value of the
arenas are part of the assessment.
"The substance of the presentation and the reaction of the
board" are "internal league matters, and ones on which we are not
prepared to comment further," Bill Daly, the NHL's chief legal
officer, said in a statement Thursday.
Bain managing partner Steven Pagliuca, co-owner of the NBA's
Boston Celtics, and Game Plan, which recently acted as an adviser
on the sale of the Ottawa Senators, are betting that many NHL
owners would welcome the chance to get out of the hockey business.
But it's unclear how team owners, especially those in large
markets such Toronto, Boston and New York, would react to the
proposal. Maple Leafs officials declined comment, the newspaper
said, as did a Game Plan spokesman.
"I would imagine different clubs had different feelings," Daly
told the Globe and Mail.
He said the league was compelled to listen based on the
significance of the offer.
"When someone's offering over $3 billion, we felt we had an
obligation to the board to have them, at least, hear it from the
proposed purchaser," Daly added.
The purchase would not depend on the NHL reaching agreement with
the players on a collective bargaining deal, the newspaper said,
and a sale would not affect the status of the NHL Players'
Association as the bargaining agent for players under U.S. and
Canadian labor laws.
According to the newspaper, Bain and Game Plan said the sale
would bolster the league's revenue because all the teams would work
together to generate more local television, sponsorship and revenue
instead of competing against one another.
The consortium reportedly told the NHL owners it had arranged
for a large Canadian-based financier to join its efforts.