As we all prepared for tonight’s game out on the west coast, a little bit of news just broke with the Stars ownership situation and the bidding process. Mike Heika of the Dallas Morning News (and someone all Stars fans should know) has reported that two major prospective ownership groups will not place a bid for the Dallas Stars. As things currently stand, groups have until tomorrow afternoon to place any bid with the courts. Ownership groups lead by Doug Miller and Chuck Greenburg have both stated that they will pass on placing a bid, and by doing so leave “stalking horse” Tom Gaglardi as the only known bidder for the team.
More from Heika:
The team is going through a prepackaged bankruptcy hearing in Delaware, as a group of lenders attempt to sell the team. And it appears now that Vancouver businessman Tom Gaglardi will become the owner once the hearing is finished and the NHL approves him. Other groups have until 4 p.m. Saturday to put in a $15 million deposit and a bid $10 million higher than Gaglardi’s “stalking horse” bid of $267 million, but both Greenberg and Miller have decided to pass, and there appears no other bidder interested.
“We will not bid,” said Greenberg, the Dallas area sports entrepreneur who helped Nolan Ryan and the current Rangers ownership group buy the team in bankruptcy court last summer.
“I’m taking a pass,” said Miller, the local petroleum executive who has long funded youth hockey and is the owner of the CHL’s Allen Americans.
Greenberg said that he has been working on a long-term plan for the team’s rebirth, and that plan had to include a long-term local media package. He said that despite hours of work in the past weeks, the deal could not be completed in time.
“From the beginning, a central component of our turnaround plan was to lock in our media rights for the future,” Greenberg said. “That’s where our efforts were, and we were confident we were going to be able to complete that. However, that is not the case.”
Miller said that he and his investors simply could not put together a plan that did not include the Stars losing $30-$35 million this season.
“With the attendance what it is and potential lost revenue that the arena shares with the NBA with the (potential) lockout, that’s just too big of a hole to dig out of,” Miller said. “We had all sorts of plans to fill the building at reduced prices, sell a ton of concessions and reduce that loss to maybe $10 million, but it’s just not possible this year. Our hope was the turnaround might be a year or two, but when you look at where they are right now, it seems much longer than that.”
The full article can be found here (Link). So now it looks like the Stars for sure will be bought by Gaglardi and hopefully knowing so and there not being a bidding war will speed up the sale process. More on this as it happens and we should know a lot more next week after the bidding window closes.