Peter Posted August 5, 2014 Share Posted August 5, 2014 The last few posts lead to the question: why are Morgan Stanley or the trust playing with fire? They have a bid that exceeds anything anyone has paid for an NFL team by bidders who will keep the team in Buffalo. By accepting the bid, the trustees will be heroes (and very rich) and not risk any litigation. What if, by monkeying with the "deadline," excusing violations of the NDA, and now giving JBJ yet another opportunity to bid, Morgan Stanley were to piss off the Pegulas who get tired of having to play by the rules while the others do not. I doubt that the Pegulas would withdraw, but Morgan Stanley and the Trust may want to consider that $1.3 Billion in hand is worth more than a Bon Jovi in the bush. Link to comment Share on other sites More sharing options...
BuffaloBill Posted August 5, 2014 Share Posted August 5, 2014 My wife will think I am nuts but if Pegula gets the team I buy season tickets - 2 seats. I live 6-7 hours away and will not be able to attend every game but I will support the club with my attendance and money as I can. When I can't attend stub hub will be my friend. I've said elsewhere, the Bills leave Buffalo I drop all interest in the NFL period. Not that it matters to the NFL but it does make me feel like I've done something in response. Link to comment Share on other sites More sharing options...
Jauronimo Posted August 5, 2014 Share Posted August 5, 2014 The last few posts lead to the question: why are Morgan Stanley or the trust playing with fire? They have a bid that exceeds anything anyone has paid for an NFL team by bidders who will keep the team in Buffalo. By accepting the bid, the trustees will be heroes (and very rich) and not risk any litigation. What if, by monkeying with the "deadline," excusing violations of the NDA, and now giving JBJ yet another opportunity to bid, Morgan Stanley were to piss off the Pegulas who get tired of having to play by the rules while the others do not. I doubt that the Pegulas would withdraw, but Morgan Stanley and the Trust may want to consider that $1.3 Billion in hand is worth more than a Bon Jovi in the bush. Changing the rules and procedures governing the bid process as you go probably isn't a very well regarded practice in the business world or even very legal. Link to comment Share on other sites More sharing options...
BuffaloATL Posted August 5, 2014 Share Posted August 5, 2014 Again, another ignorant local media story that makes statements about the value of the team based on geography. It misses the point about the value in a cash vs. financing deal. If a bidder is borrowing money, they actually pay MORE than the final bid because of interest, just like any of us buying a house. So hypothetically, a $1B bid with interest financing might be the same as a bid of $1.3B with no financing. So in Tiny Tim's mind, TG would be overpaying when in reality, with interest, the actual prices are the same. That's what happens when sports scribes with no finance skills report on big business. But as I stated in a post above, the trust gets more cash in Pegula's bid whereas the bank gets money in the borrower's bid. Stayin. While mathematically true, it's actually the opposite. While the interest would cost them more, it's not like these guys are sitting around with their money in a .01% money market account. They would use the money they're NOT spending on the team - and instead financing - and do other things with it that would likely earn them more the rate they're paying on the team loan. So from a net worth standpoint, you'd want to finance as much as possible, and I'm guessing owners finance as much as they can. Link to comment Share on other sites More sharing options...
KevinL Posted August 5, 2014 Share Posted August 5, 2014 The last few posts lead to the question: why are Morgan Stanley or the trust playing with fire? They have a bid that exceeds anything anyone has paid for an NFL team by bidders who will keep the team in Buffalo. By accepting the bid, the trustees will be heroes (and very rich) and not risk any litigation. What if, by monkeying with the "deadline," excusing violations of the NDA, and now giving JBJ yet another opportunity to bid, Morgan Stanley were to piss off the Pegulas who get tired of having to play by the rules while the others do not. I doubt that the Pegulas would withdraw, but Morgan Stanley and the Trust may want to consider that $1.3 Billion in hand is worth more than a Bon Jovi in the bush. Nothing guarantees he has to pay 1.3 bil. That is a non-binding offer that can be adjusted one way or the other. Especially after looking deeper into the financials. Link to comment Share on other sites More sharing options...
mannc Posted August 5, 2014 Share Posted August 5, 2014 The last few posts lead to the question: why are Morgan Stanley or the trust playing with fire? They have a bid that exceeds anything anyone has paid for an NFL team by bidders who will keep the team in Buffalo. By accepting the bid, the trustees will be heroes (and very rich) and not risk any litigation. What if, by monkeying with the "deadline," excusing violations of the NDA, and now giving JBJ yet another opportunity to bid, Morgan Stanley were to piss off the Pegulas who get tired of having to play by the rules while the others do not. I doubt that the Pegulas would withdraw, but Morgan Stanley and the Trust may want to consider that $1.3 Billion in hand is worth more than a Bon Jovi in the bush. Perhaps because Pegula's bid (like the others received by the Trust to this point) is non-binding. Therefore, Pegula could withdraw it or lower it at a moment's notice if he perceives that there are no other serious bidders. Link to comment Share on other sites More sharing options...
Peter Posted August 5, 2014 Share Posted August 5, 2014 (edited) Nothing guarantees he has to pay 1.3 bil. That is a non-binding offer that can be adjusted one way or the other. Especially after looking deeper into the financials. Perhaps because Pegula's bid (like the others received by the Trust to this point) is non-binding. Therefore, Pegula could withdraw it or lower it at a moment's notice if he perceives that there are no other serious bidders. As I wrote earlier - ask whether they will make their initial bid binding. Pretty simple stuff. I apologize for being ornery. I just want this to be over. Being a Bills fan and this entire process reminds me of the lyrics to this song (including a reference to "trust"): "It Don't Come Easy" It don't come easy, You know it don't come easy. It don't come easy, You know it don't come easy. Got to pay your dues if you wanna sing the blues, And you know it don't come easy. You don't have to shout or leap about, You can even play them easy. Forget about the past and all your sorrows, The future won't last, It will soon be over tomorrow. I don't ask for much, i only want your trust, And you know it don't come easy. And this love of mine keeps growing all the time, And you know it just ain't easy. Open up your heart, let's come together, Use a little love And we will make it work out better. (ah -) (ah -) (ooh-ooh) (ah-ooh-ooh) Got to pay your dues if you wanna sing the blues, And you know it don't come easy. You don't have to shout or leap about, You can even play them easy. Peace, remember peace is how we make it, Here within your reach If you're big enough to take it. I don't ask for much, i only want your trust, And you know it don't come easy. And this love of mine keeps growing all the time, And you know it don't come easy. Edited August 5, 2014 by Peter Link to comment Share on other sites More sharing options...
KevinL Posted August 5, 2014 Share Posted August 5, 2014 As I wrote earlier - ask whether they will make their initial bid binding. Pretty simple stuff. Certainly would be nice to see the drama come to an end. Link to comment Share on other sites More sharing options...
zonabb Posted August 5, 2014 Share Posted August 5, 2014 While mathematically true, it's actually the opposite. While the interest would cost them more, it's not like these guys are sitting around with their money in a .01% money market account. They would use the money they're NOT spending on the team - and instead financing - and do other things with it that would likely earn them more the rate they're paying on the team loan. So from a net worth standpoint, you'd want to finance as much as possible, and I'm guessing owners finance as much as they can. It's opportunity cost, plain and simple. And these guys are way smarter financially than any of us here. My point is simply that the cost of the bid for a cash-only buyer can be higher because of the lack of debt service because a buyer using financing is considering the cost of the debt service into the ROI. That cost evens out the bids in total costs BUT from the perspective of the seller, the cash buyer is the preferred buyer due to the higher cost they receive. And you're discounting the ego here that may actually trump (no pun intended!) sound financial principles because being a member of this exclusive club might carry more "ROI" than the profit! And one other thing that never gets mentioned... the actual asset. Most are thinking ROI in a traditional sense, that is the annual ROI on the investment. But the increased value of the asset (team) continues to grow and offset the potentially lower ROI on annual net profit. Any way you slice it, each bidder is going to know where they stand and how to outbid the other. Pegula knows that his cash bid has to be higher than JBJ's cash+loan+debt total. Still stayin any way you slice it. Link to comment Share on other sites More sharing options...
Buffaloed in Pa Posted August 5, 2014 Share Posted August 5, 2014 If I were the Pegulas . I would be a little upset at Mary and company. Letting Bon Bon back in the bidding to up the price,is wishy washy. Shows greed and no real care who owns the team. 1.3 billion is the highest paid for an NFL team. Serves her right if the Pegulas back out. 1.3 fricken Billion ? Link to comment Share on other sites More sharing options...
Jauronimo Posted August 5, 2014 Share Posted August 5, 2014 (edited) If I were the Pegulas . I would be a little upset at Mary and company. Letting Bon Bon back in the bidding to up the price,is wishy washy. Shows greed and no real care who owns the team. 1.3 billion is the highest paid for an NFL team. Serves her right if the Pegulas back out. 1.3 fricken Billion ? The bid process was disclosed up front. This wasn't a surprise to El Pegual. The trust isn't making this **** up as they go along. Edited August 5, 2014 by Jauronimo Link to comment Share on other sites More sharing options...
Kirby Jackson Posted August 5, 2014 Share Posted August 5, 2014 If I were the Pegulas . I would be a little upset at Mary and company. Letting Bon Bon back in the bidding to up the price,is wishy washy. Shows greed and no real care who owns the team. 1.3 billion is the highest paid for an NFL team. Serves her right if the Pegulas back out. 1.3 fricken Billion ? If he wants the team is he going to back out because his feelings are hurt? These guys deal in big business and they treat it as business. Feelings and emotions aren't going to have Pegula taking his ball and going home. He may not love it but he understands. Link to comment Share on other sites More sharing options...
Best Player Available Posted August 5, 2014 Share Posted August 5, 2014 Florio,on,PFT reported the J BJ bid REJECTED. To vague, and not enough cash. Try again!!!! Link to comment Share on other sites More sharing options...
Buffaloed in Pa Posted August 5, 2014 Share Posted August 5, 2014 Many big money deals have fell through ,because of somebody getting MAD,not sad. Bet on it. We`ll know soon enough. I for one ,will be glad. I said Bon ,would not give up easily. Maybe he can think about the Saints,their 87 yr old owner is in the hospital again. Link to comment Share on other sites More sharing options...
Captain Hindsight Posted August 5, 2014 Share Posted August 5, 2014 If I were the Pegulas . I would be a little upset at Mary and company. Letting Bon Bon back in the bidding to up the price,is wishy washy. Shows greed and no real care who owns the team. 1.3 billion is the highest paid for an NFL team. Serves her right if the Pegulas back out. 1.3 fricken Billion ? Sorry, this is just stupid Billionaires don't let hurt feelings get in the way. Thats how they got to be billionaires Link to comment Share on other sites More sharing options...
Buffaloed in Pa Posted August 5, 2014 Share Posted August 5, 2014 First or second bid? BPA Link to comment Share on other sites More sharing options...
Jauronimo Posted August 5, 2014 Share Posted August 5, 2014 (edited) Sorry, this is just stupid Billionaires don't let hurt feelings get in the way. Thats how they got to be billionaires Billionaires do not get hurt feelings when business matters proceed exactly as planned. http://www.democratandchronicle.com/story/sports/football/nfl/bills/2014/07/29/buffalo-bills-bidders/13309941/ http://espn.go.com/nfl/story/_/id/11293236/donald-trump-advances-next-round-bidding-buffalo-bills This was the process all along. Edited August 5, 2014 by Jauronimo Link to comment Share on other sites More sharing options...
Gugny Posted August 5, 2014 Share Posted August 5, 2014 John Kryk is doing a hell of a job providing accurate and timely information throughout this whole process. And the Buffalo News is doing a good job reporting Kryk's findings accurately. Link to comment Share on other sites More sharing options...
Kirby Jackson Posted August 5, 2014 Share Posted August 5, 2014 John Kryk is doing a hell of a job providing accurate and timely information throughout this whole process. And the Buffalo News is doing a good job reporting Kryk's findings accurately. Kryk has been all over it!! Let's not forget our TBD friend JW either. He has been all over the latest developments. Link to comment Share on other sites More sharing options...
Gugny Posted August 5, 2014 Share Posted August 5, 2014 Kryk has been all over it!! Let's not forget our TBD friend JW either. He has been all over the latest developments. Thank you. Good call. JW is great, indeed! Link to comment Share on other sites More sharing options...
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