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Checketts has 30-day window to buy Blues
By Jeremy Rutherford
ST. LOUIS POST-DISPATCH
09/29/2005
The Blues' acknowledgment Thursday that they've signed a letter of intent with Sports Capital Partners means that a prospective buyer of the hockey team and Savvis Center lease is in place. The move, however, does not signify a done deal or that one will be finalized in the 30-day exclusive negotiating window.
The Post-Dispatch has learned that Dave Checketts, founder of Sports Capital Partners, was one of three bidders for the Blues and Savvis' lease, and because his bid was substantially higher than the other two, owners Bill and Nancy Laurie chose to narrow the focus of their sale to one group.
A source close to the negotiations said a bid from St. Louis businessman Shaun Hayes was around $100 million, putting Checketts' offer probably near $110 million to $120 million. The identity of the third bidder is unknown, but a person familiar with the negotiations said it was not local businessman Michael Shanahan Jr., who had expressed early interest in owning the team.
Now with a letter of intent signed, the Blues and Sports Capital Partners will negotiate a final sale price over the next 30 days. It is possible the exclusive negotiating window could be extended past one month, and it's also possible the deal could fall through altogether. Checketts could be using the window to feel out the city about its amusement tax.
"While no sale agreement has been reached, we welcome Sports Capital Partners' interest, and we look forward to working out the details of an agreement that we hope will benefit all involved, including the team and the city of St. Louis," Blues president Mark Sauer said in a statement.
Checketts was not available for comment.
That a letter of intent has been signed by the Blues and Sports Capital Partners indicates a shrewd business strategy employed by Checketts, Webster University associate professor of economics Patrick Rishe said Thursday.
"Given Checketts' success and the organizations he's been affiliated with," Rishe said, "he probably has the resources to go ahead and bid the market value, close to $120 million, doing that strategically to nullify the competition. Bid so much to discourage anyone else from bidding."
Whether the letter of intent between the Blues and Sports Capital Partners will stop local investment groups from maintaining their interest remains to be seen. The group led by Hayes, president of National City Bank, probably would keep a close eye on the developments, a source said.
There was widespread speculation late Wednesday that Checketts' pursuit of the Blues might mean the franchise would be on the move.
Checketts, 49, lives in Connecticut and has roots in Utah. On Thursday, newspapers in Salt Lake City were planning stories about the Blues' possibly relocating to their city. A new arena was built in the Salt Lake City area for the 2002 Winter Games and is currently the home of the Utah Grizzlies of the East Coast Hockey League.
Despite this buzz, Blues fans should note that Sports Capital Partners' agreeing to purchase the Savvis lease is a strong indicator that Checketts wants to keep the team in St. Louis. To move the club after buying the lease, he would have to cover approximately $62 million in bonds to pay off the arena's debt.
No one has indicated that Checketts has agreed to keep the Blues in St. Louis. However, when asked Thursday about the possibility of Checketts buying the team, Blues general manager Larry Pleau said: "I think it would be great for the franchise, the city (and) the fans, knowing the team will be here."
Rishe, who is also director of the Web site SportsImpacts.com, said Checketts' past indicates he realizes the importance of St. Louis to the Blues.
"He's a wise enough business person to know not to move a team from a strong market, and this is a strong hockey market," Rishe said. "He would be gravely mistaken to think another market out there would support a team better than St. Louis."
Many believe, in fact, that Sports Capital Partners sees St. Louis as a viable NBA market, too, and eventually will look into moving a team here. Checketts, once president of Madison Square Garden, which overseas the New York Knicks' operations, has had a long-standing business relationship with NBA commissioner David Stern.
But before NBA fans - or even Blues fans - look ahead any further, the Lauries must reach a deal with Checketts, and the NHL Board of Governors must approve the purchase.
The league has become much stiffer in its approval, after Dallas businessman John Spano was allowed to buy the New York Islanders in 1997. Five months later, Spano failed to pay the former owners, and he wound up spending nearly six years in prison.
Pleau believes that should Checketts buy the team, he will have no problem being approved by the NHL. "He's a good guy, a good person," he said, "someone who has been involved in the sporting world." [/b][/quote]
By Jeremy Rutherford
ST. LOUIS POST-DISPATCH
09/29/2005
The Blues' acknowledgment Thursday that they've signed a letter of intent with Sports Capital Partners means that a prospective buyer of the hockey team and Savvis Center lease is in place. The move, however, does not signify a done deal or that one will be finalized in the 30-day exclusive negotiating window.
The Post-Dispatch has learned that Dave Checketts, founder of Sports Capital Partners, was one of three bidders for the Blues and Savvis' lease, and because his bid was substantially higher than the other two, owners Bill and Nancy Laurie chose to narrow the focus of their sale to one group.
A source close to the negotiations said a bid from St. Louis businessman Shaun Hayes was around $100 million, putting Checketts' offer probably near $110 million to $120 million. The identity of the third bidder is unknown, but a person familiar with the negotiations said it was not local businessman Michael Shanahan Jr., who had expressed early interest in owning the team.
Now with a letter of intent signed, the Blues and Sports Capital Partners will negotiate a final sale price over the next 30 days. It is possible the exclusive negotiating window could be extended past one month, and it's also possible the deal could fall through altogether. Checketts could be using the window to feel out the city about its amusement tax.
"While no sale agreement has been reached, we welcome Sports Capital Partners' interest, and we look forward to working out the details of an agreement that we hope will benefit all involved, including the team and the city of St. Louis," Blues president Mark Sauer said in a statement.
Checketts was not available for comment.
That a letter of intent has been signed by the Blues and Sports Capital Partners indicates a shrewd business strategy employed by Checketts, Webster University associate professor of economics Patrick Rishe said Thursday.
"Given Checketts' success and the organizations he's been affiliated with," Rishe said, "he probably has the resources to go ahead and bid the market value, close to $120 million, doing that strategically to nullify the competition. Bid so much to discourage anyone else from bidding."
Whether the letter of intent between the Blues and Sports Capital Partners will stop local investment groups from maintaining their interest remains to be seen. The group led by Hayes, president of National City Bank, probably would keep a close eye on the developments, a source said.
There was widespread speculation late Wednesday that Checketts' pursuit of the Blues might mean the franchise would be on the move.
Checketts, 49, lives in Connecticut and has roots in Utah. On Thursday, newspapers in Salt Lake City were planning stories about the Blues' possibly relocating to their city. A new arena was built in the Salt Lake City area for the 2002 Winter Games and is currently the home of the Utah Grizzlies of the East Coast Hockey League.
Despite this buzz, Blues fans should note that Sports Capital Partners' agreeing to purchase the Savvis lease is a strong indicator that Checketts wants to keep the team in St. Louis. To move the club after buying the lease, he would have to cover approximately $62 million in bonds to pay off the arena's debt.
No one has indicated that Checketts has agreed to keep the Blues in St. Louis. However, when asked Thursday about the possibility of Checketts buying the team, Blues general manager Larry Pleau said: "I think it would be great for the franchise, the city (and) the fans, knowing the team will be here."
Rishe, who is also director of the Web site SportsImpacts.com, said Checketts' past indicates he realizes the importance of St. Louis to the Blues.
"He's a wise enough business person to know not to move a team from a strong market, and this is a strong hockey market," Rishe said. "He would be gravely mistaken to think another market out there would support a team better than St. Louis."
Many believe, in fact, that Sports Capital Partners sees St. Louis as a viable NBA market, too, and eventually will look into moving a team here. Checketts, once president of Madison Square Garden, which overseas the New York Knicks' operations, has had a long-standing business relationship with NBA commissioner David Stern.
But before NBA fans - or even Blues fans - look ahead any further, the Lauries must reach a deal with Checketts, and the NHL Board of Governors must approve the purchase.
The league has become much stiffer in its approval, after Dallas businessman John Spano was allowed to buy the New York Islanders in 1997. Five months later, Spano failed to pay the former owners, and he wound up spending nearly six years in prison.
Pleau believes that should Checketts buy the team, he will have no problem being approved by the NHL. "He's a good guy, a good person," he said, "someone who has been involved in the sporting world." [/b][/quote]
"Can't buy what I want because it's free...
Can't buy what I want because it's free..."
-- Pearl Jam, from the single Corduroy
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