Beer Distributor Seeks To Purchase Blues

[cprice12]

http://www.stltoday.com/sports/hockey/p ... 58c9d.html

NEW YORK • With Dave Checketts' efforts to replace the Blues' major investor still unresolved, an offer has been made to purchase the team outright from Checketts, multiple sources have told the Post-Dispatch.

St. Louis businessman Tom Stillman, who is already a minority owner, is part of a group that presented a formal bid to Checketts' company, SCP Worldwide, to take control of the club. This is the only known offer for the team, an offer sources said was far less than the estimated value of the franchise.

In 2010, Forbes Magazine valued the Blues at $165 million, approximately $15 million more than Checketts paid for the team and the lease on Scottrade Center in 2006.

SCP has rejected the bid from Stillman's group and will continue seeking financial support to replace the Blues' major investor, TowerBrook Capital Partners, and maintain control of the club. It's believed by sources that Checketts would step aside if he was offered his asking price, which is not known at this time, but based on the recent bid he is not ready to sell.

Stillman, who became a minority owner of the Blues in 2007, is the chairman and CEO of Summit Distributing, a St. Louis-based beer distributorship. His investment group includes a couple of "heavy hitters," according to sources, and also has strong St. Louis connections.

It's unknown if a second proposal will be submitted, but multiple sources said that Stillman is committed to gaining majority ownership of the Blues. Under the current arrangement, TowerBrook possesses the largest stake in the team at 75 percent, followed by SCP at slightly more than 10 percent and Stillman at 10 percent.

So a search that began last May and has outlasted two self-imposed deadlines by Checketts is not nearing closure, and now questions are surfacing about when Checketts would have to finalize a deal with new investors or be forced into selling the Blues.
TowerBrook is seemingly in control of that answer. The private-equity firm owns $100 million in equity in the team and 11 months ago announced that it would be divesting its interest. TCP has a friendly business relationship with Checketts and has said that there is no timetable on when it will divest its stake. In fact, in December, Checketts announced that TCP had rethought its position and would maintain a smaller percentage of equity in the team.

Checketts' desire to keep control of the franchise, and TCP's choice to stay on board, have been perceived as decisions based on it currently being a poor seller's market, and the potential of a significant increase in the value of a deal could come after the NHL's new TV contract.

While perhaps smart business, the effects on the continuing investor search have created much unrest among Blues fans, especially considering that Checketts has missed his deadlines.

Checketts, who was unavailable to comment, according to a spokesman, said last fall that his search to replace TowerBrook would be completed by the end of 2010. On Dec. 30, he said that the group was 95 percent assembled and could be presented to the NHL for approval by the league's All-Star game in late January, or in February at the latest.

Now into March and with no conclusion in sight, the lack of new financial support for the Blues has contributed much uncertainty regarding the team's future.

Checketts, who possibly kept the Blues from relocating when he took control of the franchise in 2006, has been seen as a loyal and engaging owner.

However, with the Blues in 13th place in the Western Conference standings, a fan base that has sold out 33 consecutive home games is now questioning the viability of an ownership group that couldn't afford to keep the club afloat during a rash of injuries to key players.

The Blues had a record of 20-12-5 heading into January, which had them seated fifth in the Western Conference. But a mark of 2-8-2 that month dropped them to 13th in the conference, and the team has hovered around that same place in the standings ever since.

That proved critical as the Blues approached the Feb. 28 trade deadline. Though general manager Doug Armstrong said that ownership approved a limited budget increase to add help at the deadline, at six points out and with four teams to climb in the standings, Armstrong took the realistic route and traded key parts to the team.

The Blues made at least one deal that would have happened regardless of their budget situation, trading Erik Johnson and Jay McClement to Colorado for Chris Stewart and Kevin Shattenkirk. But combining the four trades they made, the team dealt five current roster players for two and shed nearly $3 million off this season's payroll.

Many NHL insiders believe that the Blues, who have a payroll of $44.4 million, are in good position financially to improve the roster. But some are apprehensive about the ownership situation, wondering if Checketts is in position to afford the needed upgrades.
After the season, the Blues will be in a key stretch in rebuilding the team. The draft is in June, and with the potential of two second- and two third-round picks, the team could have some bargaining chips in trades. But without the salary flexibility to pay established players who could come in trades, having the extra draft picks might be moot.

The draft will be followed by the start of free agency July 1. If the investor search isn't cleared up by then, it may be a tough task signing players who will have as many questions about the team's ownership situation as the fans.

[drwoland]

[DaDitka]

If Dave is waiting fr the value of this organization to go 'up', he's going to be sorely disappointed. his team is generally viewed as underfunded and underachieving.

Unless he get's the hell out of the way and let's someone with enough cash run the organization then things aren't going to improve drastically even with a new television deal.

While Stillman and Summit intrigue me, I can't help but wonder if a seriously low ball number is any kind of indicator of limited funds are their end as well. I'm not saying it us, just wondering.

[theohall]

Great! All the pre-cursors of another off-season where no splashy, goal-scoring free agent gets signed.

[ohio BLUES]

Titanic, deck chairs, etc.

I couldn't see a Stillman-led group spending money on the team, either.

[Ruutu15]

I don't really understand, so maybe you guys can help me. I know all about the past, and I think that I'm aware of the situation surrounding past ownership of the Blues, but...

The Blues aren't the Thrashers. They've been there for a long time, and have a lot of history. Players love living in St. Louis. Attendance is always pretty good. Why is ownership such an issue for them? It really seems like a dream location to own a team. Fans in STL support their teams, and it's only going to improve with a winning team, and I think that the youth movement there is promising.

Obviously, I don't like the Blues, but I like all of you guys. I'm of the opinion that the Central Division is the best and most interesting in the NHL (regardless of individual team records), and I think that it's at its best when the Blues, Blackhawks, and Dead Wings are playing to their potential at the top of the standings. It's hard for that to happen when there are so many questions at the top of the organization. Again, St. Louis seems like it would be a dream location to own a team. Why does this keep happening to you guys?

[theohall]

It's got something to do with the lease at ScottTrade and the way money is split. Several of the newer arenas, the owners get the lions's share of additional costs - parking, concessions, etc. This is not the case for the Blues and ScottTrade, AFAIK. Owners aren't just going to throw money at something without expecting a some kind of return (Buffalo being the very recent exception). Right now, it's hard to get that return as a Blues owner solely on ticket sales, tv revenue, and advertising.

If the lease weren't so ridiculous, the Blues might already have better owners and actually spend money.

IMO, Blues fans should be royally pissed at ScottTrade. 1) They already gouge the Blues for the lease. 2) Concessions shouldn't be ridiculous since the Center gets most of those proceeds, too. 3) Parking doesn't generate much due to parking sucking and so many using the Metrolink.

Someone feel free to correct me if I'm wrong, but that's what I recall the issue was before Checketts showed up.

It's not a "good" setup for an owner.

[TheoSqua]

Plus the St. Louis tv market is relatively small so TV/radio deals tend to be less lucrative than in other markets.

The only reason the Cardinals are so successful is because of the giant fanbase that was created by being broadcast on KMOX. Also Cardinals can get 3-3.5million ticket sales a season, opposed to the 800k the Blues get.

804,300 * 37.90 = $30,482,970 for the Blues in ticket sales (projected

3,301,218 * 30.14 = $99,498,710 for the Cardinals.

The Cardinals payroll is much closer to their ticket revenues than the Blues payroll is. The average price for a Ticket in the NHL is $51.41.

From 1996 to 2005 the average ticket price for the Blues was 44.56, adjust that for inflation (based on the year 2000, the average of that span) and it'd be 54.97 today. Since Checketts took over the average price has been $32.29, which is about $100m less in revenue over a 5 year span than Laurie was making when he owned the team.

So everyone who wants the Blues to start spending to the cap and investing in this team financially to win needs to expect ticket prices to go up about 40% to support that. No way this team can keep a $50m+ payroll with $30m in ticket revenues.

[cardsfan04]

Plus the St. Louis tv market is relatively small so TV/radio deals tend to be less lucrative than in other markets.

The only reason the Cardinals are so successful is because of the giant fanbase that was created by being broadcast on KMOX. Also Cardinals can get 3-3.5million ticket sales a season, opposed to the 800k the Blues get.

804,300 * 37.90 = $30,482,970 for the Blues in ticket sales (projected

3,301,218 * 30.14 = $99,498,710 for the Cardinals.

The Cardinals payroll is much closer to their ticket revenues than the Blues payroll is. The average price for a Ticket in the NHL is $51.41.

From 1996 to 2005 the average ticket price for the Blues was 44.56, adjust that for inflation (based on the year 2000, the average of that span) and it'd be 54.97 today. Since Checketts took over the average price has been $32.29, which is about $100m less in revenue over a 5 year span than Laurie was making when he owned the team.

So everyone who wants the Blues to start spending to the cap and investing in this team financially to win needs to expect ticket prices to go up about 40% to support that. No way this team can keep a $50m+ payroll with $30m in ticket revenues.

I would be fine with tickets going up IF they put that revenue into salary. My dad and I have a 10 game package in section 320. I think we pay $250/seat. I'd be fine with $300/seat if it allows them to sign somebody that will make an impact, if they otherwise wouldn't.

[DaDitka]

Plus the St. Louis tv market is relatively small so TV/radio deals tend to be less lucrative than in other markets.

The only reason the Cardinals are so successful is because of the giant fanbase that was created by being broadcast on KMOX. Also Cardinals can get 3-3.5million ticket sales a season, opposed to the 800k the Blues get.

804,300 * 37.90 = $30,482,970 for the Blues in ticket sales (projected

3,301,218 * 30.14 = $99,498,710 for the Cardinals.

The Cardinals payroll is much closer to their ticket revenues than the Blues payroll is. The average price for a Ticket in the NHL is $51.41.

From 1996 to 2005 the average ticket price for the Blues was 44.56, adjust that for inflation (based on the year 2000, the average of that span) and it'd be 54.97 today. Since Checketts took over the average price has been $32.29, which is about $100m less in revenue over a 5 year span than Laurie was making when he owned the team.

So everyone who wants the Blues to start spending to the cap and investing in this team financially to win needs to expect ticket prices to go up about 40% to support that. No way this team can keep a $50m+ payroll with $30m in ticket revenues.

Also don't forget how many 'sub' stations broadcast Cardinal games.

It's simply not realistic for the Blues organization to be a cap team. The corporate sponsorship simply isn't there. While they are selling out the seats, they have had to slash prices on luxury suits and party boxes. Advertisement dollars are way down. And they are making much less money off the Scottrade since the Chavitz (spelling) opened.

The point isn't just 'spend more money' it's that you can't make mistakes like Brewer and Jackman's contracts. What if you 'missed' on Halak and you're on the hook for his 3.75 mill a year?

We need to do a better job of developing our own talent. We need to do a better job of assessing and resigning our own talent. We have to do a better job of scouting other teams and acquiring good young talent from them. It will be moves like the EJ trade that will take this team to the next level, not FA signings (they just can't afford it).

[thedoc]

I don't know if they have money or not but I am glad to see some local interest in the team.

[Ruutu15]

Plus the St. Louis tv market is relatively small so TV/radio deals tend to be less lucrative than in other markets.

The only reason the Cardinals are so successful is because of the giant fanbase that was created by being broadcast on KMOX. Also Cardinals can get 3-3.5million ticket sales a season, opposed to the 800k the Blues get.

804,300 * 37.90 = $30,482,970 for the Blues in ticket sales (projected

3,301,218 * 30.14 = $99,498,710 for the Cardinals.

The Cardinals payroll is much closer to their ticket revenues than the Blues payroll is. The average price for a Ticket in the NHL is $51.41.

From 1996 to 2005 the average ticket price for the Blues was 44.56, adjust that for inflation (based on the year 2000, the average of that span) and it'd be 54.97 today. Since Checketts took over the average price has been $32.29, which is about $100m less in revenue over a 5 year span than Laurie was making when he owned the team.

So everyone who wants the Blues to start spending to the cap and investing in this team financially to win needs to expect ticket prices to go up about 40% to support that. No way this team can keep a $50m+ payroll with $30m in ticket revenues.

Also don't forget how many 'sub' stations broadcast Cardinal games.

It's simply not realistic for the Blues organization to be a cap team. The corporate sponsorship simply isn't there. While they are selling out the seats, they have had to slash prices on luxury suits and party boxes. Advertisement dollars are way down. And they are making much less money off the Scottrade since the Chavitz (spelling) opened.

The point isn't just 'spend more money' it's that you can't make mistakes like Brewer and Jackman's contracts. What if you 'missed' on Halak and you're on the hook for his 3.75 mill a year?

We need to do a better job of developing our own talent. We need to do a better job of assessing and resigning our own talent. We have to do a better job of scouting other teams and acquiring good young talent from them. It will be moves like the EJ trade that will take this team to the next level, not FA signings (they just can't afford it).

And that's a big problem. I come off as being a sore loser when I say this because of what happened to the Hawks over the summer, but I've felt this way the entire time, long before the team was good in the post-lockout NHL.

The problem with the salary cap is that it does spread talent, but it only makes mediocre teams slightly more competitive. You guys got Halak to compliment your young players. He was your big fish. In order to fill out a non-fluke competitive roster, you have to spend pretty close to the cap. Once that happens, you're going to lose the complimentary pieces and some of your home grown talent. Halak is a great goalie, but he isn't going to look very good behind a completely depleted team.

You can't rely on free agents, because you can't afford to make too many splashes. You can only hope that your team is fairly close, and then you can add those one or two difference makers. From there, you have a 2-year window if you're lucky. All of your young guys become RFA/UFA's and are going to get paid accordingly...by someone else. You'll still be good, but you won't be great.

Detroit is a notable exception, and that will never happen again. They were so good for so long prior to the lockout that they can convince players to come and be a part of that culture at a better cap number, and have bar none the best scouting department in professional sports. They had one hell of a head start.

And since I'm ranting...(Frank) Winnipeg. I hated it when the Jets left for Phoenix, and I do think that they probably should have a team. That said, the attitude of most Canadian fans towards Phoenix is both disgusting and hilarious. If it weren't for the salary cap, Calgary and Edmonton would most likely be gone. Winnipeg jumps all over Glendale over the bonds issue, but part of the reason that the Jets left is because they were immune to losses. The Manitoba provincial government covered all monetary losses for the team (ie- every season they were in the NHL), but they jump on Glendale over tax bonds?! Please. I hope the Coyotes stay in Phoenix. Western Canada got their coveted salary cap, effectively saving at least 2 of their teams, and then have a nerve to act like the NHL is so anti-Canadian?

[/rant]

[northwest dave]

Plus the St. Louis tv market is relatively small so TV/radio deals tend to be less lucrative than in other markets.

The only reason the Cardinals are so successful is because of the giant fanbase that was created by being broadcast on KMOX. Also Cardinals can get 3-3.5million ticket sales a season, opposed to the 800k the Blues get.

804,300 * 37.90 = $30,482,970 for the Blues in ticket sales (projected

3,301,218 * 30.14 = $99,498,710 for the Cardinals.

The Cardinals payroll is much closer to their ticket revenues than the Blues payroll is. The average price for a Ticket in the NHL is $51.41.

From 1996 to 2005 the average ticket price for the Blues was 44.56, adjust that for inflation (based on the year 2000, the average of that span) and it'd be 54.97 today. Since Checketts took over the average price has been $32.29, which is about $100m less in revenue over a 5 year span than Laurie was making when he owned the team.

So everyone who wants the Blues to start spending to the cap and investing in this team financially to win needs to expect ticket prices to go up about 40% to support that. No way this team can keep a $50m+ payroll with $30m in ticket revenues.

Aren't there other sources of income (jerseys, concessions, etc.)?

[TheoSqua]

Sure, the team gets some money on other sources. But their bread and butter is ticket sales.

Things like Jerseys and Concessions are split amongst other entities (The league gets a cut of Jersey sales, Scottrade gets the majority of money from concessions) and aren't a huge revenue maker. I doubt all other combined revenue exceeds $10-20m

And the team also has more costs than just payroll. The team likely takes a loss or just barely breaks even at their current rate.

[northwest dave]

Sure, the team gets some money on other sources. But their bread and butter is ticket sales.

Things like Jerseys and Concessions are split amongst other entities (The league gets a cut of Jersey sales, Scottrade gets the majority of money from concessions) and aren't a huge revenue maker. I doubt all other combined revenue exceeds $10-20m

And the team also has more costs than just payroll. The team likely takes a loss or just barely breaks even at their current rate.

I figured all those Sanford jerseys had to count for something.

[DaDitka]

Plus the St. Louis tv market is relatively small so TV/radio deals tend to be less lucrative than in other markets.

The only reason the Cardinals are so successful is because of the giant fanbase that was created by being broadcast on KMOX. Also Cardinals can get 3-3.5million ticket sales a season, opposed to the 800k the Blues get.

804,300 * 37.90 = $30,482,970 for the Blues in ticket sales (projected

3,301,218 * 30.14 = $99,498,710 for the Cardinals.

The Cardinals payroll is much closer to their ticket revenues than the Blues payroll is. The average price for a Ticket in the NHL is $51.41.

From 1996 to 2005 the average ticket price for the Blues was 44.56, adjust that for inflation (based on the year 2000, the average of that span) and it'd be 54.97 today. Since Checketts took over the average price has been $32.29, which is about $100m less in revenue over a 5 year span than Laurie was making when he owned the team.

So everyone who wants the Blues to start spending to the cap and investing in this team financially to win needs to expect ticket prices to go up about 40% to support that. No way this team can keep a $50m+ payroll with $30m in ticket revenues.

Aren't there other sources of income (jerseys, concessions, etc.)?

Sure but do the math. Let's say the St. Louis Blues profit $5 off every Blues (replica) Jersey sold through retail outlets. They would have to sell 940,000 jerseys to cover one year of Andy McDonald's contract.

Even if we're talking about the idiots that actually pay much more to purchase the exact same jersey at the Scottrade for a greater price and the club pockets $15.00 in profit. They'd have to sell more then 310,000 jerseys.

I read a break down in the offseason stating that the Blues organization was only profiting and average of 56 cents per beer last year (not sure I believe it, but that's what it said -after all overhead is factored in). That means it would take 8 million 400 thousand beers to cover that deal.

Don't forget, there is a lot more cost then just salaries. Equipment, travel, staff etc.

While our TV market size may be middle of the pack, corporate presence and prominence in the St. Louis metro area probably rates much lower. Nearly every game I go to the stands are full, but the suits are half empty. Sure, some of them are 'sold', but they are at seriously cut rates.

IMO no matter who ever owns this organization, a 50 million dollar payroll is the upper tier of what's realistic. So again, we have to get better at developing (and obtaining) talent, and we have to spend our money much wiser. It's not Dave Checkets that has us in this predicament, it's John Davidson and Larry Pleau. Maybe Armstrong can right the ship.

[goon attack]

The Blues need to move out of the shit hole that is St. Louis City.

[DaDitka]

The Blues need to move out of the shit hole that is St. Louis City.

Or convince the CEOs of Express Scripts, Enterprise, and Monsanto to buy the team. But other then that....not a whole lot of big hitters left around here.


Maybe if we threw the Galleria in the package?

[WaukeeBlues]

More importantly, if this had gone through would it have affected the PRICE and/or SELECTION of beer at games?

[STLADOGG]

Why couldn't of that guy that owns Buffalo, have lived in STL?