St. Louis Blues up for sale

[Madferret]

St. Louis Blues up for sale
TSN.ca Staff

ST. LOUIS - Citing significant projected financial losses, Bill and Nancy Laurie, the owners of the St. Louis Blues, have announced that the National Hockey League franchise and the Savvis Center have been put up for sale.

''The Lauries made the decision to sell the team and the Savvis Center because they can no longer justify remaining active in a business which has lost more than $60 million in the past two years and is certain to continue to lose millions annually in the years ahead,'' said Blues President Mark Sauer.

The combined cash deficits of the Blues and Savvis Center since the building opened in late 1994 have exceeded $225 million.

''Substantial future losses are projected even if you take into account what we believe will be a very successful resolution to NHL collective bargaining,'' Sauer continued. ''Those projected losses result from the current high sales and amusement taxes and the absence of city, county and state financial support of the debt service and operations of Savvis Center.''

When the Lauries purchased the team and the Savvis Center in 1999, their long-term business plan hinged on acquiring a National Basketball Association franchise, growth in Blues and NHL revenues, and on obtaining tax and financing relief afforded other professional sports teams here and throughout sports leagues. The NBA rejected the Lauries' attempt to relocate the Vancouver Grizzlies to St. Louis, and the Blues have been unsuccessful in obtaining relief from the City of St. Louis and the State of Missouri.

''Despite our substantial efforts over the past five years, we have been unable to get the Blues and the Savvis Center anywhere close to a combined financial break-even in our projections,'' Sauer said. ''This leaves us with no other choice but to search for a new owner who may be able to address and hopefully better balance the financial interrelationships between the Blues, the Savvis Center and the public sector.''

http://images.tsn.ca/images/stories/20050617/bill_41204.jpg

Wow. And the Blues always tried to play the role of a Big Market, Big $$$, Big Wheeling Club. Guess not... :shrug:

[grim]

Badmouthing the NHL. Badmouthing the financial situation of the Blues. It's like me saying my house is falling down and the neighbourhood is going to sheeeet but .... she's for sale.... you'll love it here.

[goaliemom7687]

We are in bad economic times....True money will tell when there is no hockey for the owners to make a profit.....Capitalism at its finest!!! :nod: :thumb:

[Mel]

''Substantial future losses are projected even if you take into account what we believe will be a very successful resolution to NHL collective bargaining,'' Sauer continued. ''Those projected losses result from the current high sales and amusement taxes and the absence of city, county and state financial support of the debt service and operations of Savvis Center.''

Yeah really, it sounds like he should pay me to take the franchise!

[a4l]

Why rely on the government to bail you out of a bad business decision? Hell I wish I could do that. I am not making enough money, please city, province and country help me out! :laughing: :conspire:

[Newfie John]

You'd think St. Louis would be floating in cash after making the playoffs so many times in the past 25 years or so. Goes to show how deteromental this lockout was/is.

[Madferret]

When the Lauries purchased the team and the Savvis Center in 1999, their long-term business plan hinged on acquiring a National Basketball Association franchise

Wha?

[Mel]

I guess they hoped to get a basket ball team to share the arena with the Blues. But it never panned out.

[KB in Kelowna]

Excuse me, but the Blues were one of "the spend on free agents like there is no tomorow" teams. So now the Laurie's are bailing. Smart money these folks, one had the good fortune to be born into Sam Walton's family and the other had the good luck to marry in to it. But their losses on the hockey investment are the fault of greedy players and Bob Goodenow.

[Newfie John]

Excuse me, but the Blues were one of "the spend on free agents like there is no tomorow" teams. So now the Laurie's are bailing. Smart money these folks, one had the good fortune to be born into Sam Walton's family and the other had the good luck to marry in to it. But their losses on the hockey investment are the fault of greedy players and Bob Goodenow.


They may be smarter then you think. They bought the team for about 100 million. They lost 60 million while they had the team. So that puts them in the hole by 160 million dollars. With cost certainty now inevitable in the NHL the prospects of buying an NHL team look much better, and with the fan base in St. Louis, they may sell the team for more than 160 million and actually make a profit on it. It still isn't a hopeless investment yet.

[Madferret]

They may be smarter then you think. They bought the team for about 100 million. They lost 60 million while they had the team. So that puts them in the hole by 160 million dollars. With cost certainty now inevitable in the NHL the prospects of buying an NHL team look much better, and with the fan base in St. Louis, they may sell the team for more than 160 million and actually make a profit on it. It still isn't a hopeless investment yet.

I doubt it though John. Disney sold the Ducks for what, 75 mil according to various reports? If the Big Ducks at Disney can only get 75 mil for a team that 2 years ago made the Cup finals, then I highly doubt the terminally mediocre Blues could pull in 160 Mil. I don't think their is any club aside from the Leafs, Wings & Avs that could sell their franchise for that kind of quid.
As KB mentioned, they sank alot of $$$ in the FA market on a yearly basis and now it's come back to bite them in the ass. Do they even have any blue chippers or prospects on the bubble? What's their youth situation like?
You're usually pretty knowledgeable about most clubs' youth movements, how is St. Louis looking for the future?

[Newfie John]

I doubt it though John. Disney sold the Ducks for what, 75 mil according to various reports? If the Big Ducks at Disney can only get 75 mil for a team that 2 years ago made the Cup finals, then I highly doubt the terminally mediocre Blues could pull in 160 Mil. I don't think their is any club aside from the Leafs, Wings & Avs that could sell their franchise for that kind of quid.

I know its a stretch but not impossible. I would think that the Blues would have a higher market value then the ducks though mainly because of the strong fanbase in St. Louis, and the fact the team has made the playoffs year after year may improve their stock also. Anaheim on the other hand is in California, I mean that sells it all. Hockey is definately a tough sell there and the only thing they've ever done was go to the cup finals, other than that they've been mediocre/horrible. Another difference is that with the cost certainty coming in, that is saving the Ducks, whereas the Blues didn't need the salary cap in essence. All the cap is doing for the Blues is maximizing the profits. What the cap does for Anaheim is minimize the losses. Once again it's a stretch but possible.

As KB mentioned, they sank alot of $$$ in the FA market on a yearly basis and now it's come back to bite them in the ass. Do they even have any blue chippers or prospects on the bubble? What's their youth situation like?
You're usually pretty knowledgeable about most clubs' youth movements, how is St. Louis looking for the future?

The future for the Blue's is nothing to get excited about. They have 2 great goalie prospects in Marek Schwarz and Jason Bacashihua. Beyond that there is nothing. I would say they're in a worse position then the leafs with regards to prospects. The only blue chipper St. Louis has is Schwarz, and he's a goalie at that. If they manage to resign Demitra and Pronger though, they may be able to ship them off for a good future run.