Question on Pen's sale broker, Allen and Company

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Question on Pen's sale broker, Allen and Company

Postby td_ice on Sat Jul 22, 2006 12:26 pm

Quick question for those that have any knowledge about such a sale.

Allen and Company, the New York firm brokering the Pen's sale, do they get a flat fee for their service?? Or is it commission based on the final sale price? Or combination of sorts?

Just curious.

I was wondering if there was a % based on final sale price, could it be that when the Pen's hired them, they (ML group) could be contractually obligated to accept the highest bidder??

(Sounds like the highest bidder dropped out because of relocation details, not a Penguins rejection of them.)


I just assumed that the Pen's have total say in choosing the winning bid. But maybe that is not the case when dealing with a broker. Could it be they are obligated to sell to the highest bidder?

Any comments would be appreciated.
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Postby Bowser on Sat Jul 22, 2006 1:00 pm

The Penguins and NHL control the final sale process as the league must approve any sale so the firm can only recommend a winning bid. The firm probably gets a % of the sale price, seeing as its in their best interests to negotiate such a deal with the Pens because if they can get enough parties interested, the price goes up.

And as we're seeing, Penguins sale price expected to be in the $130-150 million range will probably go for around $178 million to Sam Fingold.

The NHL has no interest in Kansas City, Hamilton, Hartford, and Las Vegas. The next franchise relocation will be heading to Houston.
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Postby Fast B on Sat Jul 22, 2006 1:12 pm

I'm more familiar with investment banks in the context of stock issues (and even then I'm no expert), but in that venue usually they get paid what amounts to a percentage of the sale price (which can be quite hefty - Allen & Co. did Google's IPO). I imagine the principle is the same for large-scale sales like this.

Also, the bank works for the seller/issuer, who I imagine has the final decision-making power.
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Postby td_ice on Sat Jul 22, 2006 3:58 pm

Thanks Bowser and fastb for the input.
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Why not Hampton Roads?

Postby Ironhorse on Sat Jul 22, 2006 10:06 pm

When the NHL awarded Columbus the final expansion team Hampton Roads finished next. Why hasn't anyone thought about the team moving here? I'll be crushed if they leave teh burgh. Still holding out hope until the vital end.
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Re: Why not Hampton Roads?

Postby Rychster on Sat Jul 22, 2006 10:30 pm

Ironhorse wrote:When the NHL awarded Columbus the final expansion team Hampton Roads finished next. Why hasn't anyone thought about the team moving here? I'll be crushed if they leave teh burgh. Still holding out hope until the vital end.


We could dream.........I guess the Admirals will do for now.. :lol:
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