BUFFALO, N.Y. -- The NHL granted Mark Hamister his fourth
and what could be his final extension on Friday to complete the
conditional purchase of the bankrupt Buffalo Sabres.
Hamister, a Buffalo businessman, and majority partner Todd
Berman, a New York City financier, now have until Feb. 3 to sign a
purchase asset agreement or risk relinquishing their rights to buy
the Sabres, opening the possibility of the team moving or folding
at the end of this season.
In issuing the extension, the NHL stressed that "a definitive
purchase agreement will need to be finalized" by the new deadline.
"We continue to work to resolve this matter for the Sabres and
their fans and anticipate the closing of the transaction will be
attained as soon as possible once the purchase agreement has been
finalized," NHL executive vice president Bill Daly said.
Approved by the NHL last November, Hamister and Berman initially
had until Jan. 3 to secure their financing. The NHL had previously
extended the prospective bidders' deadline by three one-week
increments. The last extension was to end Friday.
Hamister, whose bid is contingent on more than $40 million in
government assistance, would not explain what continues to hold up
the sale process, only to say: "We continue to make progress, but
people need to understand this is an incredibly complex negotiation
which requires a great deal of time and attention."
Part of the holdup is the state government's unwillingness to
grant Hamister's request to refinance a $22.9 million loan taken
out to help build HSBC Arena, the Sabres' home.
Even if the asset purchase agreement is signed, the actual sale
of the team would still be conditional on state, county and city
levels of government delivering an assistance package.
It's unclear how much longer the league can wait on the
prospective bidders. The Sabres, who owe creditors more than $206
million, recently filed for Chapter 11 bankruptcy protection, which
opens the possibility of the team being sold to an outside bidder.
The Sabres status is even more tenuous as the team is currently
operating on a $10 million line of credit to cover operating
expenses.
Hamister addressed the level of anxiety that grows with each
delay.
"We only have one opportunity to do this right, and we are
steadfast in doing the right things so that the Buffalo Sabres stay
in Buffalo, play in Buffalo and succeed in Buffalo," Hamister
said. "We realize that the community is very anxious about the
future of the Buffalo Sabres and, as such, are working very hard to
bring these complex negotiations to a conclusion."
It doesn't help that Hamister and Berman are now being pressed
from yet another angle.
Thursday, failed bidder B. Thomas Golisano, concerned in part by
the ongoing series of extensions granted to Hamister, issued a
letter to NHL commissioner Gary Bettman restating his interest in
buying the Sabres and keeping them in Buffalo.
In his letter, the Rochester billionaire and former New York
gubernatorial candidate, outlined a new $65 million offer, which,
unlike Hamister's bid, asks for significantly less public
assistance.
Golisano was not available for comment, his spokeswoman, Laura
Saxby Lynch, said.
Bettman has previously stressed that Hamister and Berman
submitted the best bid and that any comparisons with Golisano's
offer was "a waste of everyone's time."
Bettman has also said that he would have "grave concerns" for
the Sabres remaining in Buffalo after this season should Hamister
and Berman back out.
The Sabres have been in limbo since the league took over
operating control from John Rigas last June in part to protect its
interests in the franchise and to help smooth a sale.
Rigas has since been accused of stealing hundreds of millions of
dollars from Adelphia Communications, the cable television company
he founded. Adelphia also is the Sabres' largest creditor, owed
$130 million Rigas used to buy and operate the team.
Golisano's bid is not considered realistic as he is offering
Adelphia less in guaranteed money. Whereas Hamister's offer of $33
million to Adelphia is guaranteed, Golisano is now offering
Adelphia $35 million while asking the cable company to assume the
$22.9 million loan on the arena construction.