8935Re: Cleveland, "Chuk" team
- Feb 1, 2000Erik,
I stand corrected - sort of. According to the Flyers official web site (sorry Pete - I know yours is better), Snider started SMG as a subsidiary of Spectacor. I forgot the small print, which said Snider sold most of these entities as they peaked in value.
Which means, give a loan to the Pens in 91 when Snider owned SMG, in return for a long-term high-priced lease, sell the company to people who may or may not have hockey experience but know business, walk away, and then watch as the spun off company tries to keep the bill of goods it was sold, in this case the Penguins lease.
In SMG's case, when it's apparant that the franchise has no funds, try to put in a bid for the franchise to keep your asset, which in SMG's case is the arena lease. If the Pens fold or move to Portland, the lease is worth nothing, and since I'm sure Snider didn't just give SMG away, SMG loses the lease, that Snider's management negotiated and then increased SMG's worth on the market. All in all, it seems like a sleazy/typical NHL-ownership manouver.
SMG is made out to be the bad guy, while the profits from the Islander and Penguin deals flow into the Flyers, since Snider was able to artificially increase the selling price of SMG.
So while SMG is not owned by Snider currently, the Flyers are still profiting from the Penguin and Islander deals.
BTW, according to the Flyers official site, Snider took control of the Spectrum in 71, started PRISM to televise the Flyers games, got a franchise for Ticketmaster in the Philadelphia-area, bought HTN to transmit sporting events to satellite and WIP radio which was the first all-sports radio station.
A couple of comments: first, with all this activity, it's easy to see where the Flyers get their wealth. They've controlled every aspect of attending a hockey game, from the price of parking to the price of a beer to listening to the post-game show with Gene Hart.
Second, there's no way to trust the Flyers books over the years. If the team has been showing too much profit over the years, just increase the rent to Spectacor or reduce the broadcast fees for the games.
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