I think that's a problem nationwide, isn't it? It's almost as if winning doesn't matter, it's the matchday experience.
Also, The city is about to repo the stadium, as the Rhinos have defaulted on their 11 million $$ loan regarding the stadium. We'll see what can happen now, only the new investor can save it and that doesn't seem so promising as of right now.
The possible investor is finally named, but he sounds like he's still just 'kicking the tires.' [FONT=Verdana, Arial]http://www.democratandchronicle.com/apps/pbcs.dll/article?AID=/20080130/NEWS01/801300341/1002/NEWS "There are some short-term challenges for sure," Dan Williams said from his office near Princeton, N.J. "But ... if we were to go ahead and say Rochester will be our first choice of investment in U.S. soccer, there's absolutely nothing I can foresee that would stop that from happening." That comes after months of complaints from Rhinos creditors and at least two lawsuits against the team, including one by a bank seeking $10.8 million. Williams said he was aware of all that. He met with city of Rochester officials two weeks ago but declined to offer any specifics of the discussion. Despite the city's recent assertion that it needs to see progress from the Rhinos toward solving the debt, Williams said he didn't encounter any hostility. "No conversations had any negative element," he said, before adding, "The last thing I'm interested in is getting involved in politics — state vs. city, city vs. residents. That's the quickest way to kill a deal for me."[/FONT]
I can only see this going one direction..........SOUTH. THe title of this thread is very appropriate, a house of cards. The Rhinos ownership has simply run out of banks to borrow from, assets to collateralize and excuses to make. The city isn't going to hand over a 4 million dollar check to this outfit and the Rhinos ownership is going to collapse. Actually this might be a good development overall. USL isn't going to want to lose this market, the city isn't going to want a white elephant of an empty soccer stadium, they outwait this stooge until his finances simply run out and re-launch another team with this guy from NJ. Nobody in town, nobody, is going to lend any money, provide any services or promote anything until the current guy is gone. The Americans will be fine and so will the Rhinos. The stadium will go to the city.
Viriginia Beach didn't have 30+ years of soccer tradition, a team that had averaged over 12,000/game, or any league or USOC title sniffs. It's really an apples and golden eggs comparison. One is a very easy market to make money in if done right while the other is very difficult to break even in, even if done perfectly. I've heard of several investors waiting in the wings for the current ownership to go belly up before they hop on the foreclosure sale. And this guy Dan Williams is willing to hop in even with all the debt burden.
My fear is the vetting of the new potential owner isn't done 100% and the new owner isn't as legit as we think he is.
I hadn't been following this situation until this week (it's been a distracting off-season for me), but I'm very sorry to hear it. I really hope something can be worked out.
This is crazy. Didn't Garber say "It's not if Rochester comes in but 'when.'" Seems like another universe now.
New Investor is on the verge of buying the Rhinos outright. Name: Dan Williams (formerly head of a group trying to buy Blackburn Rovers) Cost: ~$10million If the deal is done in enough time, he says we'll have a former EPL player on the roster for 2008. I know, I know, lets all think of the lamest EPL player we can. Either way this likes like a good sign IFFFFF it goes through. There's a lot of dirt that will have to be cleaned up.
Looking at it outright, doesn't it seem a some what low number to pick up the pieces of the Rhinos right now?
No. It reminds me of hotel/resort buyouts. I've seen it with Hotels or ski resorts, where a new investor comes along and buys the property at a price that is just enough to cover the prior owner's debt and then dumps a bunch of money into it to make it a viable resort. If the team didn't have the debt and dirt up the wazzoo, I'm sure they could get a much better chunk of change for the team and stadium.
Good point. Perhaps Donner realizes that he needs to cut his losses with this team and stadium. This way he can focus down on his other 3 teams. I wonder what becomes of the MLL team's relationship with Paetec Park, not that I care though.
I'm sure in taking over the ownership of the Rhinos, the new owner will have to take on some of the same agreements that RSG has had with the city. There will have to be some action taken on the Rattlers and Lady Rhinos as well. The thing I like about the situation is that this guy Dan Williams has been developing real estate in developing nations. If the guy can do that in places like Nigeria, he can do it in the Rochester ghetto.
That's why he's meeting with DuRoss and Donner's bank today. Looking at it now, he's the only one who was willing to step in with enough ca$h to clear them entirely of their debt. Which is one reason D-n-D are so sweet on the deal. More news: Rhinos name stays-D&C (there had been rumors of Rochester Rovers) Devo's Direct Kicks Blog- Rhinos Owner to Meet with Perspective Buyer- News 10 NBC
From memory, didn't the Rhinos get screwed out of a sizable chunk of change by Paetec over naming rights due to the stadium being delayed? Like millions of dollars over several years?
Not really screwed. When they downsized the plans due to state fund cuts, they renegotiated the naming rights with PaeTec Communications. It was tens of millions of dollars different. New News from Devo's Direct Kicks Blog:
If you read DiVeronica's blog, you see where the Rhinos screwed themselves out of quite a bit of money. I'll have to double check the blog but I know the Rhinos made far less on the naming rights than originally planned.
Soccer Sam has group ready if Williams can't make deal http://www.democratandchronicle.com/blogs/devo/
Local Investors Would Make Sure Rhinos Play in 2008-D&C Group include "Soccer" Sam Fantauzzo, several local car dealer owners, and a guy who is 32 and owns like 85 Dunkin' Donuts. They are a backup only if the Dan Williams deal completely collapses.