Ascent Entertainment Group completed a "long-rumored"
$400M deal yesterday to sell the Avalanche, Nuggets and
Pepsi Center to Wal-Mart heirs Bill and Nancy Laurie,
according to Diddlebock & Monroe of the DENVER POST. The MO
couple will pay $260M in cash for the Avalanche and Nuggets,
and will also "assume" $140M in debt for the privately
financed Pepsi Center, set to open in October. The Lauries'
partner in the deal is Ascent Entertainment Chair & CEO
Charlie Lyons, who said that he'll "receive an unspecified
stake in the partnership as well as manage its properties."
Lyons said that he'll remain at Ascent, which has lost
$91.2M over the past two years, through the end of June, and
he hopes the deal can be finalized by June 30. Lyons
described the new partnership as a "private venture" and
refused to reveal any details of its structure. He did say
that reports of the Avalanche splitting from the Nuggets and
Pepsi Center package were "wrong." Reaction to the deal on
Wall Street was not favorable, as Ascent's stock fell $1.25
yesterday to close at $11.125, after falling as low as
$8.75. FL-based Matador Capital Management President Jeff
Berg, whose company holds 1.7 million shares of Ascent,
called the deal's valuation "disturbingly low," while
another Ascent investor said: "I would've liked to have seen
the price the Lauries paid, plus the assumption of debt."
The deal still must be approved by the NHL, NBA and the city
and county of Denver (DENVER POST, 4/27).
DID THEY GET IT ON THE CHEAP? SportsCorp.'s Marc Ganis
put the value of the Avalanche, Nuggets and Pepsi Center at
between $475-525M, while The Bonham Group's Dean Bonham
estimated it at $540M (ROCKY MOUNTAIN NEWS, 4/27).
TO AVS OR TO AVS NOT? NHL Commissioner Gary Bettman,
who said Bill Laurie "intends to keep" the Avalanche: "When
you look at it at from an investment standpoint, they (the
Lauries) are better off having the whole package. It works
better in terms of selling tickets, suites, club seats,
managing the building, sponsorships and signage." In
Denver, Bob Kravitz: "We know Laurie has deep pockets. The
question is, if his passion is basketball, will he dig deep
into those pockets to keep the high-payroll Avalanche
competitive?" (ROCKY MOUNTAIN NEWS, 4/27).
SMOOTH TRANSITION: There will be no "wholesale change"
in the front offices of the Avalanche and Nuggets, as the
Lauries "have signaled a smooth ownership transition that
will retain the management teams Lyons already has in
place." Lyons will acquire a minority interest in all three
holdings and run the day-to-day operations as President of
the new venture (Mike Monroe, DENVER POST, 4/27).
