New beginning in Buffalo

Golisano offers $92 million to buy troubled Sabres

Tom Golisano smiles Friday at a news conference to announce his $92 million offer for the Buffalo Sabres. AP

BUFFALO, N.Y. (AP) -- If he can't be New York's governor, Rochester billionaire B. Thomas Golisano will settle on something else -- such as becoming the next owner of the Buffalo Sabres.

"First of all, I want to thank all of you who voted against me in last November's election," Golisano said Friday, a day after he signed a potential $92 million offer to buy the bankrupt NHL franchise. "Because if I had been elected, I wouldn't be here today."

That, he added, isn't a bad trade-off after enduring his third failed election run.

"Quite frankly, I'm awe-struck," said Golisano during a press conference in the lobby of the team's arena. "I know the Sabres are a very important part of western New York."

Pending U.S. Bankruptcy court and NHL board of governors approval, Golisano all but ended eight months of uncertainty by securing the Sabres future in Buffalo.

"I know it's been a difficult ordeal for everybody," Golisano said. "Maybe we can look at this as closing a chapter of the Buffalo Sabres and moving on to a new one. ... I'm very excited about creating a new era."

White knight Click the image to launch the clip Tom Golisano believes the Sabres are crucial to Buffalo's civic identity. Start Video Plus Visit Video Plus for all the latest video and audio.

Adelphia Communications, the nation's fifth largest cable television company and the Sabres largest creditor, has approved Golisano's offer.

The Sabres and Ottawa Senators filed for Chapter 11 protection within days of each other in January. With several other teams up for sale, there have been questions about whether contraction might be the NHL's best option for survival.

Golisano sat next to Bettman in the lobby of the Sabres' arena Friday as the commissioner dismissed speculation that the league might consider eliminating any of its 30 teams.

"Contraction is something we have not ever considered, and it's not anything we intend to consider," Bettman said. "The fact that we're all sitting here today, and Tom is stepping up the way he is, is proof positive that contraction is not on our agenda."

Golisano said it was premature to discuss what potential changes he might make to the team and its executive, although he said Larry Quinn would be awarded a front-office post.

Quinn is the Sabres former president and headed Golisano's purchase bid.

Earlier in the day, Golisano's asset purchase agreement was submitted to Judge Michael Kaplan, who approved a motion to move the sale process forward.

A hearing has been set for March 19, where a schedule of dates is expected to be complete which would potentially allow Golisano -- barring any outside offers -- to own the team by April 10.

NHL commissioner Gary Bettman isn't anticipating any further problems in a process that has already seen one prospective owner suspend his bid.

"I think people should stop worrying about the Sabres in Buffalo, because our knight on a white horse came riding in," Bettman said. "This represents an opportunity for the Sabres to move forward under strong ownership and to give the fans and this community the assurance that the franchise will be here."

In court papers submitted by Sabres attorney William Thomas, Golisano's offer includes $45 million in assumed liabilities, up to $25 million in projected team debt this season and a $22 million concession loan.

Golisano has also offered to pay unsecured creditors, owed approximately $2.5 million, a move Thomas described as both "extraordinarily generous" and "highly unusual." Thomas said Golisano was not legally bound to do so.

Former Sabres star Gilbert Perreault is listed among the unsecured creditors. Perreault said he was more concerned about the franchise's long-term security.

"This franchise has been here for 33 years, and it would've been very sad to say Buffalo doesn't have a hockey team anymore," Perreault said. "But now, Mr. Golisano is here and it looks like it's going to be here for a long time."

As part of the deal, Golisano would assume operational control of the Sabres' arena as well as the National Lacrosse League Buffalo Bandits.

Golisano secured his bid with a $5 million deposit.

Any potential competing bid would have to be at least $3 million more than Golisano's.

Bettman credited the role of Adelphia, and interim CEO Erland Kailbourne, as key to the deal.

"Without the support of Adelphia Communications, this franchise would've been in real trouble and we might not have made it to this point," Bettman said.

The NHL took over operating control of the Sabres last June after team's former owner John Rigas was forced to step down as chairman of Adelphia.

Adelphia, which filed for Chapter 11 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.

The 61-year-old Golisano is the founder and chairman of Rochester-based Paychex, the nation's second-largest payroll-processing company. In last year's election campaign, he spent more than $75 million in what became the most expensive non-presidential race in U.S. history.

In November, the NHL rejected Golisano's initial bid to buy the Sabres, giving conditional approval to Buffalo businessman Mark Hamister and New York City financier Todd Berman. Golisano was offering $13 million less than Hamister in guaranteed money to Adelphia.

Golisano re-entered the bidding process in February when Hamister suspended his bid after failing to receive commitments for state assistance.

 

Related information

Stories

Golisano signs asset agreement to buy Sabres Burning Questions: Who played who in the trade market? Stephen Cannella: Mighty Quinn Jon A. Dolezar: Leafs, Stars earn highest marks for deadline deals Darren Eliot: Unheralded players wait for chance to shine Week at a Glance: Wings conserved energy brilliantly for stretch run

Multimedia

Visit Video Plus for the latest audio and video