Carolina Hurricanes owner Tom Dundon reportedly looking to sell a minority stake of team
But I think we have some breaking news. I want to be extra clear on this. Uh this is reporting being done by Mike Ozanian or Ozanian. I apologize if I mispronounced that. Uh who is listed here as a senior sports reporter for CNBC. Uh I’ll read the tweet that was put out earlier today. Multiple sources have told me, that’s meaning Mike, not me, Tim, me the tweeter. Uh, multiple sources have told Mike Oan that Tom Dundan is close to selling a significant LP stake in the Carolina Hurricanes at a $2 billion valuation. Dundan is in the process of buying the Portland Trailblazers for over $4 billion. That last part we already knew, but obviously Mike wanted to remind you and I will as well. There’s there’s a few unknown things that I’m going to just put out there that I I don’t know. Um does significant LP stake is is is that a threshold? Like is there a certain percentage that needs to be you know could significant be 2%. Could significant be 10%. Does significant have to be majority? I don’t I don’t know in a business term if significant is of any kind of hard and fast rules. Well, I think significant in my eyes would not mean majority because majority means majority. Significant in my eyes is could be somewhere around 30% 40%. Okay. I mean that to me that’s still a significant amount. Now that that would still give Tom Dundan governance over the team though. Exactly. Which would be an infusion. Now again listen I’m a sports radio host. I’m not an entrepreneur of any kind. I’ve never owned any kind of publicly traded anything. Um, but I assume that would just mean he needs the cash to go to the Trailblazers deal, right? It wouldn’t impact the Canes necessarily in any way because he would still be the uh majority owner. He would still carry all of the the decision-making power. Um, and on top of that, it’s not even like he’s he would be selling a a stake in the canes in order to get money to put into the Canes. he’d be getting money to put into the Trailblazers, uh, which is in Portland and doesn’t exactly affect us. Okay, here’s a little bit more on this. So, this comes from Front Office Sports. Okay, so I actually looked on this a little bit more. Uh, this comes from Ben Horn or of Front Office Sports. Uh, saying, uh, Tom Don Tom Dundan is in talks to sell a minority stake in the NHL’s Hurricanes to raise cash for his purchase of the NBA’s Trailblazers. Front Office Sports has learned Dundan has been holding discussions with potential investors about a minority stake in the Hurricanes. According to two sources familiar with the matter, one source says the stake sale is aimed at providing Dundan with more cash to pay for the Blazers, which again he agreed to buy back in August for north of $4 billion. So if the valuation So um if the valuation turns out to be accurate, which again that $2 billion, uh it will represent one of the highest ever for an NHL franchise. Boom. Yeah. Uh if you we’ve we’ve gone over a few times the like the Sporico valuations and everything and how much they’ve gone up or down uh for the Carolina Hurricanes year-to-year. I believe if my memory serves correctly the most recent estimates from Sporico were 1.92 billion. So a $2 billion valuation maybe even a little north of that kind of makes sense. Uh because people don’t get the opportunities to buy into professional sports teams that often and because the supply is so low often times the the price is a bit higher. Now, traditionally, that’s for buying the majority of a team. Um, but but if if you just want to be the the second banana in the Canes system, you know, probably cost you quite a pretty penny. Actually, back on Tuesday of last week, so just over a week ago, it was actually Michael Zion of CNBC Sports U actually posted the article about valuations of franchises in the in the NHL. And the Carolina Hurricanes came in ranked 15th in terms of total value at $2 billion. And their year-over-year value change from last year was actually the highest change. It was 53% value growth from last year to this year. And that’s again according to Michael Zen. So, this this this guy’s been on it, which makes a uh makes reason makes it makes sense for why a a investor may want to uh you know, own part of the Carolina Hurricanes, even if that means they don’t get to, you know, uh be the one voting on things leaguewide or the one that that Eric Tolski has to check with before making a big trade. Uh they they can simply just see a a growth on their investment because the Canes have been growing at a pretty rapid rate. and I don’t see the hockey slowing down from a success standpoint and and that’s obviously going to going to help things. So, uh that’s why I I before we brought up the tweet from from uh Ozan, I I intentionally said like don’t want anybody to get too excited. I I think this is more, you know, bringing someone else into the Kane’s maybe inner circle, but it’s really more about Tom Dundan’s agreement to buy the Portland Trailblazers than anything else. And you know, like the uh the great Kevin Hart standup, right? The way my bank account’s set up, I I got a checking and I got a savings and it takes three or five business days for my money to move from savings to checking and that’s going to take some time. Uh he’s just he needs to take some of the money that he has uh some of the value that he has in the Carolina Hurricanes and move that over to the Portland Trailblazers. Um again, I don’t know all the rules, but I do know every league has a different requirement on the percentage that the majority owner owns. uh some I think it’s 41% you have to own at least 41% if you’re going to be the majority owner some over 50 and and whatever the the deals are. So you know you could own 100% of the canes or perhaps enough to be the majority owner of two different sports franchises. Uh but you would have to have other people owning the rest right the completing the the pie. So that’s that’s where I’m standing. If I misspoke on any of that and you’re an entrepreneur at home going oh this guy’s never owned a business. You are 100% correct. Uh, but I don’t think, you know, this this adds up to much other than Tom Dundan growing his sports portfolio. Do we root for the Portland Trailblazers now knowing that if they do well, they get more money and then Tom Dundan’s pockets are are lined and perhaps that could bounce back this way? Because right now, obviously, selling the Canes minority stake will benefit the Portland Trailblazers. So, they’re rooting for good business on the Canes side of things. Like are are we suddenly like huge Scoot Henderson fans? Uh is that weird is that a weird way to think about it? It feels a little weird to think about it that way, but maybe like if they start printing money out there, do we not have to worry about deferred contracts as much? Like is is okay. Will the the concourse at the Lenovo Center suddenly look awesome? I don’t know. It’s already being improved, right? Uh the drive with Tim Donnelly 999 the fan. Just a little bit of uh business news for you. Canes aren’t going anywhere, folks. I I the best news about it is they’re attractive to a minority investor, minority stake investor, because things are going so well. Uh because you’re winning, because business is good, because you’re filling the arena, because merch is selling, because valuations are going up, because you have these young core of players signed a long-term contracts. Like, no good business person is like, “Is that business really cranking? Let me buy it and change everything.” No, it’s like things are going well. They just want to They just want to
Tim Donnelly & Dennis Cox reports that Carolina Hurricanes owner Tom Dundon is looking to sell a stake of the franchise.
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