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NEWS ARCHIVE
Thursday April 10, 2003
ESPN.com reports the sale of the bankrupt Buffalo Sabres to B. Thomas Golisano was approved by a U.S. Bankruptcy Court judge Thursday.
Approval of the $92 million deal from the NHL's Board of Governors was expected, in part because league officials, including commissioner Gary Bettman, helped broker the deal between Golisano and Adelphia Communications.
Bettman, in Buffalo for the NCAA Frozen Four tournament, is scheduled to address the media later Thursday.
Golisano, founder and chairman of Rochester-based Paychex, was not immediately available for comment.
In approving the sale, Judge Michael Kaplan said no regional business transaction in memory had received as much public scrutiny. Erie County, the city of Buffalo and other public agencies with an interest in the team or HSBC Arena had to sign off on to the deal.
"For the good of the city and western New York region I'm glad it went forward in such a straightforward manner,'' Kaplan said.
Bettman, in Buffalo for the NCAA Frozen Four tournament, said the Board of Governors' approval was unanimous.
"We're on track,'' he said. "We still have to close the transaction. We're not anticipating any problems at all.''
Attorney Jane Clemens said she expects Golisano to close the deal within days.
Sabres lawyer William Thomas said the team, whose season ended Sunday, was close to running out of most of its court-approved $25 million financing. Approval of the sale was in the best interest of all involved, he told the judge.
Golisano's offer takes into account $45 million in assumed liabilities, up to $25 million in projected team debt this season and a $22 million concession loan. He is also offering to pay $2.5 million owed to unsecured creditors, despite not being legally bound to do so.
As part of the deal, Golisano would assume operational control of the Sabres arena as well as the National Lacrosse League Buffalo Bandits.
The team has been in limbo since last June when the NHL took over operational control of the franchise. The league moved in -- in part -- to protect its interest in the franchise after former Sabres owner John Rigas was forced to step down as Adelphia's chairman.
Adelphia, which filed for Chapter 11 bankruptcy protection last summer, is owed between $130 million and $160 million Rigas used to help buy and run the team since the mid-1990s. Rigas has since been indicted on federal fraud charges.
Last week the Erie County Legislature approved a deal requiring the county to give up about $300,000 in revenue owed to the county and another annual sum of more than $100,000 a year from ticket surcharges. The deal includes a promise that Golisano will keep the team in Buffalo and does not require the county to pay out any public money.
The City Council last week approved a motion that will have Golisano begin paying the annual $500,000 ground rent on HSBC Arena once he takes possession of the franchise. In return, Golisano will be granted the right to negotiate a deal with the city to take control of several nearby parking lots.