We don’t like to say we told you so, but…
George Gillett upset over speculation
posted by Pat Graham, THE ASSOCIATED PRESS
Published Wednesday March 25th, 2009
DENVER – George Gillett Jr.’s speech on global ownership Wednesday turned personal when he was pressed about the financial stability of his sports teams, Liverpool F.C. and the Montreal Canadiens.
An agitated Gillett paced around the stage at the SportAccord convention of global sports leaders, fuming that a private matter has suddenly drawn worldwide attention.
Gillett has engaged six investment advisors to reassess his varied holdings – for estate planning purposes only, he contends.
The central issue is whether Gillett would sell his 50 per cent stake in the English Premier League soccer team or offload the NHL’s Canadiens.
“It got reported … that I was selling assets, as opposed to estate planning,” said Gillett, who was forced to address the questions during what was supposed to be a lecture on global sports ownership in the 21st century.
“Even when you think you’re doing it right, it gets distorted. There is no story yet. We’ll find out when they give us the reports what it is.
“My guess is it’s unlikely that you will see any short-term sales. You may see a recapitalization here or there, we may bring in a partner or two. But I think it’s unlikely you will see any asset sales.”
Gillett and Liverpool co-owner Tom Hicks, who also owns baseball’s Texas Rangers and the NHL’s Dallas Stars, have a July deadline to refinance the loan that funded their takeover two years ago.
That financing package of about US$368.2 million must be renewed after a six-month extension was granted by the Royal Bank of Scotland and U.S. investment bank Wachovia.
But RBS recently announced huge losses in this global economic downturn and may not be in a position to extend further financing.
Selling his Liverpool stake would require the approval of Hicks, but Gillett owns 80.1 per cent of the Canadiens and the Bell Centre.
“The businesses are all in excellent shape financially, they all are healthy, they’ve got strong incomes and relatively small debt in this difficult world,” Gillett said.
“Yet, if you read the speculation that’s going on, you’d somehow or other read that we’re in financial difficulty and so forth.”
That speculation bothers him.
“I am not used to this kind of attention, and this kind of impoliteness,” Gillett said. “I am really offended by it, because it really is truly private.
“I know it affects assets that we all know and love but it doesn’t affect the operations of the business.”
That’s why his advice to Liverpool and Montreal fans is to focus on players, not front-office business.
“I don’t think owners should be that directly involved in a public way,” Gillett said. “I’m a very private person … That’s the way I am. That’s the way I prefer it to be.”
He said he accepted the invitation to appear at the conference before the Liverpool news started to surface and probably wouldn’t have done so had he known he’d get grilled about it.
LOL, where is the “denial”???????
Gillett is “upset” that the impression is out that he is experiencing “financial difficulties”? Well PAY OFF THE GODDAMN LOAN then George, and the “impression” will go away.
A buddy owes me $30 from six months or more ago, and he hasn’t repaid because of “financial difficulties”. Fine, at least he is honest enough to admit it. Gillett and Hicks are 6 months overdue on nearly $400 million. Again, Hicks at least is forthcoming enough to admit his predicament and open about the steps he is taking to resolve it.
If you wanted to say “I told you so”, you sure picked a weak “denial” from ownership. From my perspective Gillett’s statement only reinforces the perception that the team is on the market.
It seems that you have never heard of financing a purchase.
Boivin, Gainey and Gillett have all denied that the team is currently for sale, but apparently you know better, rob.
What more can be said to you?
For everyone else, we understand that the sale of the team is one of many, many options on the table. We will get back to this issue when it actually becomes a story.
For now, there are more important things to focus on: 9 remaining games in the season.
Gillett is overdue on a $368 million dollar loan taken to purchase the primary ivestment in his portfolio. He is currently at loggerheads with his investment partner in that enterprise, Tom Hicks. Both would like to buy each other out, or at least acquire a controlling interest in the Liverpool franchise. Both obviously would like to pay off the loan rather than risk losing their investment.
Given that scenario, if someone were to come to Gillett at the moment and offer the latest assessed value of Les Canadiens (around $335 million) what do you think he would do? In my opinion, adding two and two together in this situation isn’t that risky a proposition.
I never suggested that Gillett would “sell in the short term” whatever that means, only that THE TEAM IS ON THE MARKET. I am pretty sure that the media who broke the story came to the same conclusion. A deal of this magnitude would obviously take time to conclude, and is contingent on finding an interested investor with the necessary capital.
That is where the story “actually becomes a story” in your words, but I never suggested otherwise. My point, and nothing that Gillett, Boivin, or Gainey has said diminishes it, is that the team is for sale. In high finance or high politics, “LEAKS” are never accidental. The word has been put out for a reason.
Rob, what is your stake in this? Are you even remotely aware that the puck will drop on a very important game in a minute or two?
The information WAS NOT leaked. Boivin under the direction of Gillett made a statement announcing a review. It was then distorted beyond recognition by the Montreal media.
As Gillett said “Even when you think you’re doing it right, it gets distorted.”
Gillett is a straight shooter. He wouldn’t be so visibly upset if the decision has already been made as you claim.
The story is currently a financial review. Anything else is irresponsible speculation.
I have no stake, other than an appreciation of common sense. It is fine to be a fan, but that doesn’t mean you have to cover your eyes and plug your ears every time unwelcome news appears.
How is your refusing to acknowledge the story helpful to the team’s fortunes? It matters not a whit if the average fan reading a blog is “distracted” or not, and as far as the players are concerned, they either have gauranteed contracts or not. If they do, they get paid wherever, or for whomever, they play. If they don’t they try to sell their services to the new owner/management in the same fashion they would have with the present staff. Or they go elsewhere to play.
The only ones with their jobs on the line would be upper managment, but that would have been the case in any event. Plus they aren’t likely to be lining up at the unemployment center or food bank in the near future, even if they do get sacked.
….I was under the impression that Boivin issued his statement AFTER the first rumours started to circulate. In response to the rumours. But whether he did or not, isn’t that important. What Boivin acheived was to notify the general public that THE TEAM COULD BE FOR SALE. So whether it was by a previous “leak” or that supplied by Boivin, the effect is the same.
Gillett has gone through at least one previous bankruptcy in his financial career, and has teetered on the brink other times. Your portrayal of him as a “straight shooter” who lives and dies for the cause of the Montreal Canadiens is pretty optimistic. He bought the team for speculative purposes, and had little or nothing to do with hockey or the city of Montreal prior to seeing what he percieved as a good investment opportunity back in 2001.
What is the matter with you? Honestly!
FACT: Gillett’s holdings are being reviewed by six financial firms worldwide. They are to report on strategic options. Gillett claims it is for estate planning purposes.
SPECULATION: Everything else!
I wrote that Gillett is a straight shooter. Since you have serious comprehension problems, here is the quote: “Gillett is a straight shooter.”
I have observed that he answers a direct question with a direct answer. There have been times when he has also been quite direct about his choice not to answer a question.
The rest of the “portrayal” that you attribute to me is just manufactured by you. Are you sure you don’t work for the Montreal media?
Everything is always blown out of proportions when it concerns the Habs. Poor Gillett. He loves this team though. The Habs are his favourite “toy”. He also has his fingers in like everything. It’s crazy what this guy owns!
I also don’t understand the media around here… It’s a well known fact that Gillett was always looking for the possibility of a partner if the right one approaches and provides an opportunity. He has said it many times before. But leave it to LaPresse to throw out a story that’s so distorted from the facts, knowing full well the ripple effect from jokes to more speculations from every corner of the media here. And while the team is currently trying to dig out of a tight situation too. Like vultures, they can’t wait for more dirty laundry to throw out there and distract us from the game…
Well it seems you’re getting ALL OF YOUR INFORMATION, pro and con, from the same “Montreal media” you love to dis. When the owner of the team commissions a local company to review his local assets, (while simultaneously being under apparent financial pressure, elsewhere in his empire), THAT IS NEWS. Like it or not.
The effect it has on team performance is WAY OVERBLOWN. The team is made up of individuals who have spent their entire professional careers not knowing where, and for whom, they would be working almost on a monthly basis. That is the nature of being a professional athlete. Most could care less who owns the team they play for as long as the cheques don’t bounce.
I bet if you asked players on the current roster who owns exactly how much of the team at the moment, not more than two or three of them would come up with the correct answer.
Exactly Number31!
Best comment by far!!
Again rob, you would do better to read before commenting. The very story that you are commenting on is NOT from the Montreal media. It is from Pat Graham, an AP Sportswriter.
Besides, I didn’t say that all of the Montreal media are irresponsible. I identified those that have been sensational, speculative and irresponsible in their reporting. Subsequently, they were referred to as the Montreal media as we all know how we are talking about.
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