Well the options are kind of limited for Nashville to produce revenue to subsidize the fact they are going to have to shell out 27 million to Weber in under a year.

What do you propose their plan is? To match the offer sheet and continue to lose more money?
- PLindbergh31

they could hire MJL to give a weekly update about contract and CBA issues...

If NASH really wants to keep Weber, the money will not be an issue. The Ownership group I am sure is convening to discuss the options and ramifications of this "investment" into the franchise. A Capital Call to inject the necessary monies needed to retain Weber is an option for the Group. If one balks at this request, one of the wealthier Owners agrees to step to the plate for a greater % of the Team.

Is this the best scenario going forward with the business model? Are the revenues there to recoup an investment built around Weber? Other financial considerations with their future RFA's must also be factored in.

IMO, unless the 5% Owner Wilson steps up to absorb the losses over the next 6 years, a trade is NASH best route. Homer obviously knows what package he was prepared to offer in advance of the OS. So a reduced package to allow NASH their exit would be the best result for everyone and how I see it playing out.

of course its a loss he still gets paid if there is no season.
- Philly1980

Only 7.5 million counts as a loss. The balance is likely amortized over the life of the contract. If you really want a simple explanation, reply back and I'll explain the difference between profit and loss and cash flows.

I'm not giving Nashville a top 4 d man. Not when we lose Kimmo next year. They don't have the leverage to pull one from us. As far as D goes I offer them MAB and no more.

I was in the camp of needing to deal jake and Mez to make the cap stuff work, but...

If they just let nashville have the picks and trade Mezs (cut shelley), either to nashville for one of the picks or where ever, they have enough cap space to sign Jake and Doan and still have 1M in cap space. Once LTIR kicks in, that would give them around 3-4M to work with in season. Of course, with no picks to trade, that 3M becomes a little less relevant.

I don't understand the transition from the summer cushion to LTIR allowances enough to be sure, but there is a possibility that they could actually keep Mez, sign jake and Doan, and cut shelley and make that all work with zero cap space left over.

The lender could take into account the personal wealth of the individual owners.

The big key, IMO, is can Nashville afford to build a competitive team around Weber if they match.
- Jsaquella

From a lenders perspective his could be very complex. I agree that you must look to collateral of principals in order to lend to bridge any gap. So it really would be a personal loan to the owners. From what we've seen of the preds finances no lender would invest unless the interest rate was more like 15 to 20% which is obviously a very expensive burn rate for debt service. We would need to know what other loans are outstanding and what priority level is available and what equity the borrowers have as collateral. Bottom line is that wihout much more information, we can't just assume that financing is either readily available or if it is cheap or not.

If NASH really wants to keep Weber, the money will not be an issue. The Ownership group I am sure is convening to discuss the options and ramifications of this "investment" into the franchise. A Capital Call to inject the necessary monies needed to retain Weber is an option for the Group. If one balks at this request, one of the wealthier Owners agrees to step to the plate for a greater % of the Team.

Is this the best scenario going forward with the business model? Are the revenues there to recoup an investment built around Weber? Other financial considerations with our future RFA's must also be factored in.

IMO, unless the 5% Owner Wilson steps up to absorb the losses over the next 6 years, a trade is NASH best route. Homer obviously knows what package he was prepared to offer in advance of the OS. So a reduced package to allow NASH their exit would be the best result for everyone and how I see it playing out
- 9thPassyunk

prob the best chance at us getting weber

Ticket sales are the only source of income for a team?
- MJL

Mjl if you look at their income sheet the other sources have been pretty steady over the years

Voracek and Meszaros isn't close to being spare parts. Under the circumstances, that's a great haul for Poile. And he should be thankful.
- MJL

I completely agree! The other day I posted that we have to consider whether another team with a pick in the 20-25 range would trade a first round pick for a player that we want to include in a trade for Weber. Teams would absolutely trade a late round pick for Vorachek or Mesz. Vorachek would likely fetch mid round pick or higher. Mesz would too if he didn't have the back situation.

Of course not. But as the reports indicate Nashville made 26 million in ticket revenue last year, if they match the Weber offer sheet they are going to have 100+% of ticket revenue paid out to one guy in 2013? In what world does that make sense?
- PLindbergh31

In a World where the long term losses outweigh the short term losses. Nashville needs 13M right now to match the deal. That's it. Financial people know how to put money to work. Sometimes you have to make an investment to pay off down the road. If they're serious about building this franchise, they're going to think long and hard about the product on the ice, and retaining and building a fan base. We'll see how Nashville decides. Millionaires with other business ventures need tax shelters.

Entering hour 60 of "Weber Woody"

TMI........deal with it

they could hire MJL to give a weekly update about contract and CBA issues...
- isaiah520

If Nashville matches the Weber offer sheet, it's to appease their fan base and to avoid a poopstorm and PR nightmare. Financially, those who know anything about business understand it doesn't make any sense for Nashville to match. If they have 8 first round picks in the next four years they can be very good within 3-4 years if they draft well. They will also have a ton of cap room to add free agents in the coming years.

Mjl if you look at their income sheet the other sources have been pretty steady over the years
- Philly1980

You don't have access to their income sheet.

I was in the camp of needing to deal jake and Mez to make the cap stuff work, but...

If they just let nashville have the picks and trade Mezs (cut shelley), either to nashville for one of the picks or where ever, they have enough cap space to sign Jake and Doan and still have 1M in cap space. Once LTIR kicks in, that would give them around 3-4M to work with in season. Of course, with no picks to trade, that 3M becomes a little less relevant.

I don't understand the transition from the summer cushion to LTIR allowances enough to be sure, but there is a possibility that they could actually keep Mez, sign jake and Doan, and cut shelley and make that all work with zero cap space left over.
- nails

Nothwistanding jasq's posting yest (one of the best all time) about billy Penn and homers balls and Doan, I just don't think that is possible. Let's deal wih one pipe dream at a time.

Hope you are right. If Nashville matches there is going to be a ton of disappointed fans. I'm hoping Doan doesn't make any decision until this Weber situation unfolds.

Nashville matching, and Doan landing in Pittsburgh, or with the Rags would be yet another kick to the nads.
- PLindbergh31

See that's the thing. We all have different opinions, I would take the risk of them matching. You can't lose what you don't have. Offer sheeting Weber wasn't even an option by many in here. No need to be disappointed if they don't get weber. This young core of guys will be just fine. I love Weber but he's one player and it takes a team to win a cup.

Only 7.5 million counts as a loss. The balance is likely amortized over the life of the contract. If you really want a simple explanation, reply back and I'll explain the difference between profit and loss and cash flows.
- TheGreat28

Who is going to give. A team worth 160 mill a 110 loan? The interest alone would kill them

The lender could take into account the personal wealth of the individual owners.

The big key, IMO, is can Nashville afford to build a competitive team around Weber if they match.
- Jsaquella

For sure they would have to.....a money losing asset has trouble getting any financing, with good reason. But ask yourself one question.....if your a rich guy...do you put your personal future up for this???
You get rich from being smart with $ for the most part.....some of my cheapest friends have the most $.....

You don't have access to their income sheet.
- MJL

Check yesterday's posts bro

The more I think about it, the more I am leaning to giving up Coots as a last resort in return for a few of those pics. Although they need D now and a Schenn x 2 would also work.

Do you think there is any truth to the rumor that Doan is in town?
- section32

Yep. I think that he's probably meeting with Homer & co right now.

See that's the thing. We all have different opinions, I would take the risk of them matching. You can't lose what you don't have. Offer sheeting Weber wasn't even an option by many in here. No need to be disappointed if they don't get weber. This young core of guys will be just fine. I love Weber but he's one player and it takes a team to win a cup.
- stveshdy

I want the Flyers to hold firm and call Nashville's bluff. If they match so be it. No need to panic now and throw a package of solid players Nashville's way when they may have no intention to match the offer sheet

For sure they would have to.....a money losing asset has trouble getting any financing, with good reason. But ask yourself one question.....if your a rich guy...do you put your personal future up for this???
You get rich from being smart with $ for the most part.....some of my cheapest friends have the most $.....
- landros 2

That's the rub. I was just saying it's probably possible for them to get the cash together to match....but rich folks hate throwing good money after bad.

Nothwistanding jasq's posting yest (one of the best all time) about billy Penn and homers balls and Doan, I just don't think that is possible. Let's deal wih one pipe dream at a time.
- FlyersFirst

I'm only putting out there that the numbers could work.
not saying i expect it.
Anyway, I was curious if my original line of though about needing to move players was right, and I think I was wrong.

From a lenders perspective his could be very complex. I agree that you must look to collateral of principals in order to lend to bridge any gap. So it really would be a personal loan to the owners. From what we've seen of the preds finances no lender would invest unless the interest rate was more like 15 to 20% which is obviously a very expensive burn rate for debt service. We would need to know what other loans are outstanding and what priority level is available and what equity the borrowers have as collateral. Bottom line is that wihout much more information, we can't just assume that financing is either readily available or if it is cheap or not.
- FlyersFirst

Unless the loan was from one of the owners. They would know how much was real loss and how much was an accounting loss. They would also have models projecting revenue with Weber and revenue without Weber. So in the end the loan would be a hedge against lost income from losing Weber, tho of course it carries risk (a LOT of risk).

But in general I agree with everything you are saying.

I think im getting greedy but my don't touch list is now including jake. Cooter the schenns coburn and of course g. Let polie have 2 of the rest.
- FlyersFirst

You are not being greedy. Call their bluff and thats it.

I was in the camp of needing to deal jake and Mez to make the cap stuff work, but...

If they just let nashville have the picks and trade Mezs (cut shelley), either to nashville for one of the picks or where ever, they have enough cap space to sign Jake and Doan and still have 1M in cap space. Once LTIR kicks in, that would give them around 3-4M to work with in season. Of course, with no picks to trade, that 3M becomes a little less relevant.

I don't understand the transition from the summer cushion to LTIR allowances enough to be sure, but there is a possibility that they could actually keep Mez, sign jake and Doan, and cut shelley and make that all work with zero cap space left over.
- nails

If I understand what your saying correctly. Your numbers are way off. If they get Weber, and sign Doan, they can't re-sign Voracek. Unless he's willing to take a serious pay cut.