One day after a report had investor Bill Laurie
agreeing in principle to a $400M deal for the Avalanche,
Nuggets and the Pepsi Center, sources said that "more
players could muscle into the high-stakes game," according
to Bob Diddlebock of the DENVER POST. Laurie, who is
married to Nancy Walton, an heir to the Wal-Mart Corp.
fortune, had made a $400M offer, which "could well include"
the $130M in debt that Ascent "has incurred to build the
Pepsi Center." The $400M bid "struck several industry
observers as low," and a business source said such a figure
"could draw two current Ascent investors" into the bidding:
Australian Kerry Packer and Triarc Chair Nelson Peltz. Wal-
Mart sources have said that Rockies Chair Jerry McMorris
"has discussed" the deal with Ascent Entertainment CEO
Charlie Lyons. McMorris said that he has talked with Lyons,
but nothing is currently being negotiated, though he added,
"I wouldn't want to rule out anything in the sports world
today." Another name that has "surfaced," via his stake in
CO-based EchoStar, is News Corp.'s Rupert Murdoch. Trading
in Ascent yesterday "was brisk," as a total of 725,800
shares changed hands, compared with Monday's 121,000.
Ascent closed at $10.75, up $.25 (DENVER POST, 3/31).
SPIN MOVE: The SportsBusiness Journal's Daniel Kaplan
reports in THE DAILY this morning that a banker involved in
the talks said that Ascent is planning a bifurcated
transaction, in which it will sell the Nuggets and a
majority interest in the Pepsi Center to a group led by
Laurie, while a second, unnamed group will acquire the
Avalanche and a minority interest in the arena. The source
characterized the talks as in the "handshake" stage, saying
they could still break down. Kaplan adds that the deal is
being driven by Ascent's high level of debt (THE DAILY).
MORE DETAILS: The ROCKY MOUNTAIN NEWS' Al Lewis reports
that analysts estimate the teams and the Pepsi Center "will
sell for" $400-550M. The Bonham Group President Dean
Bonham: "When the deal actually is announced, I predict it
will be worth considerably more than $400 million. ... The
cost of the Pepsi Center is a lot less than its value. That
should be a cash-cow for a well-oiled, well-managed
corporate machine" (ROCKY MOUNTAIN NEWS, 3/31).
FOR THE RECORD: Through Fox/Liberty's 40% stake in MSG,
Fox currently owns 20% of the Knicks and holds an option to
purchase a minority share of the Lakers. NBA rules allow
groups to acquire more than a 10% minority interest in only
one franchise, while a group's total minority investments in
multiple teams cannot exceed 50% (THE DAILY).
POST-MORTEMS ON ASCENT: In Denver, Mike Littwin writes
under the header, "Ascent's Tenure Dotted By Good, Bad,
Ugly." Littwin writes that Lyons did bring the NHL to
Denver and spearheaded construction of the Pepsi Center.
Littwin: "However you grade its performance, Ascent has to
get credit for changing the local sporting landscape, which
is a nice little story" (ROCKY MOUNTAIN NEWS, 3/31). Also
in Denver, Woody Paige writes that Lyons "has been a
valuable keeper of the flame. He has flaws, but he has
foresight. Occasionally, he deserved our wrath, but, more
often, he deserved our applause" (DENVER POST, 3/31).
