Apr 29, 2014|
Automatically Generated Transcript (may not be 100% accurate)
In the closet none reallocation of my head's about to explode so we needed to bring in someone who can help. Prevent my head from exploding markets Howard Jeremy thank you first off coming all of us this morning. Good morning gentlemen I think this is way ended up with. Those 60000 dollars in student launch lost. The earlier on the clock -- charges about billing rate of 400 dollars an hour. Send the bill to Jeremy light that's WH ITE. And and he'll take care but I promise. We'll send an autograph picture. -- I don't know make it a Bulldog and Michael or about it out. OK so I don't know where to even start here mark but the story talks about. The restrictions on the sale of the team that there's a restriction in place that the team would not be sold to anyone who even has the intent. To move the team I guess let me start with this. The not relocation all these clauses all of these restrictions. For the life of the -- are they up through 20191. Off let's start there. Well -- through the entire tenure provisional release which we're entering now you're too -- Still technically in the -- sure at least as expires on July 31 feature. The provision which regards to the 2000. 192027. Year an aspect does exist so -- don't -- people think it doesn't exist as a result. There is -- clause there at the end of seventeen years which team can opt out in the very short period of time so troops. OK but. I guess that's that a team. Opt out is what that it be -- that basically bio right that's the the 28 million dollar buyout clause right. OK does that mean that for all intents and purposes after 2019. The non relocation of four -- million dollar penalty does that ceased to exist at that moment. Known. If they don't opt out -- -- can expect in the place. OK but but they can opt out without having to worry about that non real case and in the penalty. A case -- -- there is that it's a clean one year window to break away from everything. They'll try even a year as much less than a year but there is that one period in which they can make a determination it's based off of the expiration of the collective bargaining agreement. People -- keep on -- -- that provision in there and my responses to bills wouldn't sign an agreement unless they had been there. There there there are deathly afraid of a new collective bargaining agreement being like the prior one. The current collective bargaining agreement has been beneficial for the team the prior one if you remember was a disaster for the team decided truly did not share the revenue that. -- smaller market needed. What is the window he says it's less than a year so after that like the 2019 football season has ended. What's the wind. They have like approximately a period where they have to let us know by a certain date I don't -- -- actually have a -- front of me. And deployed troops -- 31. Document agreements with them over thousands of pages sort of nearly good number but it to my understanding it was like it to six week window which have the opportunity notified. The county in the state that Dubai you know. In the prior lease and this is where follows the prior at least they have until the equivalent of the end of December to notify the county state that they were. On an annual basis. Either moving ahead with a -- or not. And that was in the prior at least every year the bills could buy out one word I think only three million dollars in the final years bill for the equivalent of a third string linebacker they can be bought out two weeks. It pretty much at the end of the season and they have a in the six week window. In which to notify the county in the state that yes we're not moving forward. Okay and and mark again thanks coming ominous what about the clause. That that states. The team can't be sold to. You know what it was about if you have knowledge of the bills have knowledge of someone's intent to move the team they are they are not able to buy the team is that right. Well let's correct it during the -- relocation term. Right so but again when that lapses in that one year window. It's not it's not applicable at that point. Well. Any or six week -- wants to ask any any owner at that point. Could could buy -- I mean whenever the owners whether it's local owner or someone from outside the area. And net debt provision in the hour to decide you know not a buyout Arizona stadium they couldn't wait until the end of the tenured term everyone's assuming. And it -- say. People forget it is -- no matter what to kind of near term and expires -- that team owner at that point to them not to negotiate with the county in the state a lot of vulnerable somewhere else they could go somewhere else there's nothing that we could do to prevent them at that point. I guess what we're all assuming that if -- Toronto group tries to buy the team they would -- with the purpose of moving to Toronto that while it has not been stated publicly. Does the -- or the excuse me does the agreement and all of these clauses basically prohibited team. A group from Toronto buying team -- thinking well -- gonna move it so that would they not be allowed to buy it. Well if they come in and they say we're -- we're gonna keep the team here in keeping me here -- -- -- documents we're gonna keep -- here through the term than mentally relocation term and theoretically they could buy it. I mean one thing that mr. Chris does not note in his article one read to you specifically section. Three B. The laws re Roman numeral. To sell traveler sign. -- or -- change the teams when a person who come out to build knowledge from his intention to really can become a transfer of the whereas with the team during them relocation term. To a location other -- -- three B Roman numeral. Three but you have to go down and there's a number of there's just there's a Roman numeral for. Which that'll launch of other things there entertainer and he offer proposed -- -- to turn to a location other in this stadium solicited an offer proposed from any person under discussion regarding moving the team to a location of the stadium. The whole bunch of things but then there's an exception. Except in the case equality BC or. So why to reach that fiscal relocation correction -- and such cause would first take effect after the relocation term. So theoretically they could be entering in the negotiations with the parties thing -- team here through. 2013 I have no intention of moving -- but I might move it in twenty or 24 that technically -- -- wouldn't violate provisions. Like is that the least to be done that yet that so that -- that you like appropriate there ought ride that be a free -- they can -- they wanted to blow them. But it is the language the article as it was -- it led one to believe that if -- group was. Open about wanting to move the team as long as they exit -- songs they play ball. They they can't be prohibited from purchasing the team varieties and. I think that's a fair assessment and then there's there's a reason why -- said would have been saying for some time this was ironclad as it pertains to the term. If somebody wanted to buy the team. Let's assume. The group from maple leaf sports entertainment. Headed by mr. Bon Jovi wanted to buy the team in in 2016. Move the team at trial they could -- -- -- counting in the states. Which would would come back in force. Through corporate action the court to stay here to a specific performance -- and the reason being. Usually buys the team they're buying it subject to all the restrictive covenants that the team in the league entered into with the county in the state. Which -- relocation agreement is that major restrictive covenant. It states. You as older are in and and it's not just this provision there's other provisions that says the state. The next owner will take the team pursuant to the agreements that are entered into by the current ownership. So whomever is buying it is buying it in -- signed document has seen it yes we're taking it pursuant to these terms. Johnson took its like buying a car as is like basically a proposal at that. No I mean that is the best way to think about it is -- the most people they know about an -- to buy a house it's got to meet him about it. That nets is that that means that they're buying the house with that restriction already in place and have to take it in and they can't tell he's an owner all you -- you can go like right. You're not allowed to do what she did previously what you bought -- house. With these men in the place them in in first so -- stock with. -- I asked this question John -- who we spoke this morning about his piece and this is what gets us this conversation. At this might be more opinion and it might be tough question for you to answer I asked David if what all this adds up to. Is something that is effective in keeping the team here or is it me. Mainly effective in trying to scare away. Another group because it does seem like an awful lot for someone to go through your buying the team as is and you can't move it for a long time. He suggested that we've suggest that this is well what happens at the stadium and their bought by Rogers. And they're gathers the stuck here till 2000 -- -- what happens to the fan base what happens to the team on the field like it would be a very bad look for the NFL so was that something that. That that basically -- this was trying and it'll make the these potential buyers fearful or -- -- kind of keep them away. Well first off. The intention was no matter what to keep the team here -- restore and to make it difficult afterwards to have a team move elsewhere. Remember what we -- -- -- ruffles and stole lives. Mr. Wilson. Meaning he used it. He truthfully. That there's a good chance to Atlanta meticulously which of Evernote ten years that point you -- ninety. Think you've been -- for Arafat's responsibility -- survived. So we were under the assumption that. Well there's a chance that mr. Wilson's been passed before this leases on shall we want to ensure that we have provisions in this release him -- relocation agreement. That make it very prohibitive for any party to come in interest -- the team and move it out of there and that was our goal our goal was to ensure that. Any older in the future. We we didn't really fear mr. Wilson moving the team to beat -- stuck to his commitments over the years but but we were fearful someone coming in and basically trying to scavenge the team. Other gonna buy it. And as a result immediately movement we put provisions in the agreement that made it almost impossible to move it especially upon. The situation where we are today let's assume that the -- have a new owner by march of next year donor can move this team. Without having to deal with the specific performance clause plate in the county court or state court in Erie county and even medically so so one. They're they're they're winning would have to. The result of the repayment of the 400 million dollars. So our goal was to make it almost impossible for some of the comments -- -- team. And move it I think we've done a pretty good job of that. I'm not gonna sit here today and say anything's. Prohibited because certainly they certainly have that power and don't know it just would do in the future. But it's very doubtful that that situation would arise. So our goal was to make it almost impossible for the team to move whether mr. Wilson was owning or new war. In I think we've done a pretty good job of that. In the end it's a -- nearly were entering the second year particularly. If a new order comes -- by the teams of public -- to the buffalo. I have no intention of doing that and the by the team and they sit there and say well I'm not gonna negotiated -- least now American negotiate at least. At the end of his tenure term to -- I'm moving it could happen or people who assume that because because it. Well we over the ten years strong leaks what happens in the eleventh here we have to negotiate in the meantime. Mark -- heartless just couple quick things that I could serve thanks again for giving us your time this morning. You know what now the the sign off on all this stuff right everything you put in there yet the bills and the NFL both were fully aware of all these restrictions and signed off on -- right. Well bill certainly signing agreements. The NFL has to approve them. These DSL is not a signatory to the agreement. The -- three parties hitters signatories to agreements. For the county period -- in new York at Buffalo Bills now it's the NFL had approved it. We would never entered into. OK good I was glad it was it was suggested to us the NFL was a bit reluctant to agreed a lot of these terms. I think it's fair to say -- the case they were not thrilled. But I believe that virtual Clinton just flip men in the spring and didn't do very good job of selling this package of agreements and his package of agreements to the NFL. As to why this is in the best interest of the team and as a result in the best interest of the NFL. I'm not privy to the conversations that -- had with -- individual owners like I do know conversations and I would mr. -- mr. Brandon. And I think indicated that not all the owners are happy with these provisions but it was approved in the end and it's there. I was -- if we could read into that if I mean ultimately barring any court issues the NFL owners would have to approve any sale of of the franchise and and relocation. If you could read into that with the -- of -- saying OK maybe hasn't glee but saying okay that would be an indication that they would be willing to make sure the team stayed in buffalo. From reading too much into that. I think it's fair to say that the NFL understand the value of the Buffalo Bills to this community into its own organization. I don't think that they're looking forward to moving the team out of this area that being cut. You never know what an individual owners thinking. Remember it's at the clock remind everybody. The NFL in some ways a club of was 32 owners. They're not all in agreement. You do not need unanimous consent to move a team. You but he continued like like three quarters of the owners of two thirds can -- -- number. And and in the end. The club liked to have members is part of the club in this pertains as well to the sale of the team that -- -- have owners that are similar to them. That have similar discussions and similar views that's gonna they have a role in this sale of the team in when it comes to where they put the team. I think it's. I think it's fair to say get it felt believes it is of value to having the -- -- in buffalo they also understand there's a value to having a team in Los Angeles or Colorado -- London. Our goal was to make this most recently. As tough as possible so if the team does move to Los Angeles or London or Toronto. It's it's a different team like San Diego were all coroner Jacksonville which truthfully are much worse shape -- -- -- -- Diego could move on an annual basis Oakland can move on an annual basis. Although if there's going to be a team that's moving anytime soon I don't believe -- the bills it's going to be one of those two camps. -- let you -- is there anything new candidate you can share with us in terms of this whole process. That the vetting the bidding the investment banking anything. While I think everything just moving along at a pace that everyone thought it would once the Wilson passed away -- And I hit my initial conversations with bills organization. I think it is moving along inserted in their hands right now -- regards to. Talking to prospective owners whenever you have to. If the value of the team on the date of the death of mr. Wilson. You have to actually do would have an evaluation for tax purposes so that's what's going on right now as investment bank that has not been retained yet but to build. Which investment bank to choose will be doing that valuation of determination. Of the tele with a team and the days of mr. Wilson stepped protect purposes. They'll be looking at prospective owners doing research on them it's just takes some time. Why -- that it was funny when. But mr. Wilson passed away. My phone blew up immediately -- -- the -- are gonna move for next year in -- no deductible for pictures and marketable figure after their -- the year after that we have does not relocation. Agreement in place. There is going to be a process. Theoretically it could be done by the end of the year I think basically the beginning of next year is probably. A better timeline. But by this time next -- fully expect a new owner to be in place and will be having discussions with -- to water of about a not just the years 3456. Any intent in this currently split needs to -- in more substantial longer at least -- after. I almost every ethnic -- -- -- have more questions. But he you do have a day job those -- and on it gets in trouble with the counting. I'm actually sitting in my office right now also. There's a lot that we do and Erie county government position on part of it right now we're trying to pass. Laws in Albany to strengthen Child Protective Services very important it's significant. Just unfortunately not only in Erie county put -- one most recently talked accounting were a child -- beat to death by an adult. Cross state so we're working in net. And I'm very probably this week will be opening up a brand new. Help small on me he said golf owner Cheektowaga where people can get primary care dental care mental health -- -- one location it's kind of the first. Time that this is ever happening in our community so there's a lot going -- including the bills -- Blogger Jeremy the last class I was just gonna ask it. Considering all you have going on. How how often -- that you your phone wolf a lot that first -- how often do you hear about it. From any of the parties involved to -- -- the group comes forward in their interest did you hear about that group. You know the day -- day I wonder how much of this is actually on your plate. It's not depend on the day some days it's. Seems seems to make up most of the day the other days it doesn't. I talked to potential owners. -- -- to the council for potential owners. My general response to them is. Very interest in you being an owner of the team Milosevic became Buffalo's you wanna move the team and go like I. So when we have those conversations. Russia you know -- converse weather expert phone or by text frequently just took. Sort of keeper each other updated about what's going on thinking that state officials. -- it we're kind of in a little -- holding pattern right now because of -- having to deal with the issues regarding. The sale of the team doesn't stop us from the work that we're doing with the new -- working group committee but if it does slow things down a little bit. Because there is an expectation that while the bills organization can play a role in this -- working group there will be a new owner by all acquitted by this time next year. And metal are also want to -- receive whatever we do what triggered the news team working group. So those are -- discussions that are going including. Also letting those prospective bidders know about what's happening with the industry work so. It just it's a continual process it's a very very complicated financial transaction not just to see the sale of the team. And particular what people think about this when you put a bid in -- house and signed the contract to purchase a house. It still takes a number of months trees equals the process -- think about how long it takes to close. The sale of the business that's worth potentially. A billion dollars. All of that has to be done and it's gonna take some time so I think people just need to relax realize. There are people who were watching out for -- the best interest to keep the team in town. There's a there's a lot of interest of course and his team. -- and -- interest from people who want to purchase the team and keep an impossible not as if there's no what if there's no there's no one there there's no way what might want to approach to even keep them awful there's a number of parties that -- And I think that's something that's as of a lot about the value of this franchise not just awful audience but. Worldwide likened to the other people who want purchases team from outside the series who really don't have a connection. With the the buffalo area but understand the value the Buffalo Bills bring and have told me at least personally they're committed to keeping this team here. Not only during all the -- for this car lease but there after because they understand. The value. That -- team brings. In and if you're gonna move between analyst and just you got to build a stadium. Another billion dollar proposition. You can't truthfully there's much talk about Toronto you've got to build a stadium in Toronto because skydome is not sufficient for medical purposes. So those things that people seem to be forgetting about that would need to be done and and in addition to buying the team. Which is original equipment around a billion dollars out of Milwaukee auction sold for 550 million with the provision that herb Kohler put it to keep the team in Milwaukee. If the Milwaukee box -- the worst NBA team to go for 550 million dollars what do you think about -- team can go for. Those -- the discussions that are going on and it takes some time. Has doubts on tweet that you yet. He tweets at the commissioner and his -- -- you know. No mr. trump has not tweeted that yet. There's a that it let's put it this way if we're gonna have these conversations. With regards to the future this franchise I don't believe the conversations between prospective owners of myself for going to be my -- Earn a much oil exporter -- I turn out. I mark Paul cars for -- thank you very much for college and first of all on schedule and thank you for stand as long as endless we really appreciate your time marriage don't agree thank you to know. Mark -- present this year and WGR. Could you wrap up what she's -- left -- on the first part was I'm.