If the NHL were a regular old, tax-paying corporation, conservatives would be losing their minds. First, the NHL takes over the Phoenix Coyotes and loses $25 million (which is to be paid back), now the league has given the Dallas Stars $8 million to keep the team afloat.
The Hockey News reported that the Stars have received $8 million in future television and revenue sharing money. The team is being financed by a group of unofficial owners after Tom Hicks led Hicks Sports Group defaulted on a $525 million in debt.
The lenders are prepared to extend the team a line of credit when the monies collected over the summer run out, which is expected to occur in December or January. To help avoid falling into further debt to the lenders, the Stars have asked the NHL for an advance on revenue they would receive after the season. That money would come in a line of credit.
If the team were sold before December, the advance would not be necessary. Sources say there are three buyers who have been approved by the NHL to bid on the Stars, not including Bill Gallacher, who has pulled out of his attempt but could get back at any time.
The THN report said that the NHL is aware of all transactions the Stars’ management makes, but will not limit the team’s spending. And, though the league helped set the team’s budget, they will not “babysit” the Stars.
There have been plenty of rumors concerning bidders, but nothing has gone past that stage. Considering how wacky the Coyotes’ situation has become, the NHL can only hope the Stars’ sale to goes much more smoothly.
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be followed on Twitter
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