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SBJ/June 18 - 24, 2001/FinancePrint All
Flames feel financial heat
Calgary Flames owner Harley Hotchkiss said the team's seven-member ownership group needs to invest additional money in the club in the wake of a loss of more than $3.9 million for the past season, according to a Calgary Sun report.
Providian backs Olympic bid
Providian Financial Corp. plans to give $200,000 over two years to the Bay Area Sports Organizing Committee, the group assembling the San Francisco area's bid to play host to the 2012 Summer Olympics. The locally based credit card company had been mulling a contribution to BASOC since last fall. Providian spokesman Alan Elias will join the executive committee of BASOC.
St. Pete pays $45K to fix Trop
The city of St. Petersburg appropriated $45,000 to correct violations of state and federal standards regarding access by disabled fans at Tropicana Field, home of the Tampa Bay Devil Rays. The domed stadium was cited by the U.S. Department of the Interior during an inspection last year in which it came up 29 seats short of the required 446 seats needed under the Americans with Disabilities Act, based on its capacity.
Venator sells $125M in notes
Venator Group Inc., a New York based specialty athletic retailer, announced last week that it has completed the sale of $125 million of convertible subordinated notes due 2008. The notes will be convertible into shares of Venator Group common stock at a conversion price of $15.806 a share. The proceeds will be used for working capital and general corporate purposes and to reduce reliance on bank financing. Simultaneous to the offering, the company amended and restated its $300 million revolving credit facility to a $190 million three-year credit facility. The offering and the three-year credit facility both closed June 8.
Citibank funds Magnum buy
Citibank agreed to lend Magnum Sports & Entertainment $15 million to finance the company's purchase of Ford Models, a fashion modeling management company. Magnum said it plans to raise additional money by issuing preferred stock. Magnum represents professional football players and recently launched a TV division. Former MSG President Bob Gutkowksi is Magnum's president. Magnum is listed on the Nasdaq stock exchange under the symbol MAGZ. Citibank is a unit of Citigroup.
Former Merrill Lynch & Co. sports banker Chris Melvin has joined UBS PaineWebber in its sports and recreation group.
Melvin was laid off from Merrill in April after 81¼2 years managing its sports finance practice, which included such clients as the Phoenix Suns and New York Yankees.
Asked whether the Yankees were still his client or Merrill's, Melvin said that the Yankees "are making a decision to what they are going to do." The Yankees are considering stadium options that include building a new facility and renovating Yankee Stadium.
PaineWebber has largely been involved on the municipal side of sports, meaning it advises and manages debt sales for cities and states, not teams and leagues. The Sports Authority in Houston was a client, as is the city of St. Louis, which is considering building a new stadium for the Cardinals, Melvin said.
At PaineWebber, Melvin said he planned to work with teams, leagues and private individuals in sports.
"There are a fair number of stadium opportunities that still exist, and there are other opportunities that will surface," Melvin said. "Not just in the original financing, but refinancing of these stadiums, recapitalization of teams and internationally."
Sports bankers offer services from loans to acquisition advice to refinancing existing debt. But Melvin will work out of PaineWebber's sports and recreation group, which is housed in its municipal finance division. As at Merrill, he will do double duty in the utility business.
Melvin will work with PaineWebber's Jim Henson, who has handled sports out of the company's Philadelphia office. Melvin will be based in New York and is a managing director. He started work June 8.
UBS PaineWebber is a unit of UBS AG.
The Sporting 40 Stock Index chart for the week of 6/6/01 – 6/12/01.