Florida Panthers' proposed sale hits a roadblock
HMR | Quote | Chart | News | PowerRating -- The proposed sale of the Florida Panthers to Sports Properties Acquisition Corp. has been derailed, at least for now, because the terms of the deal do not satisfy the NHL's ownership requirements, according to people briefed on the situation.
Owner Alan Cohen has been trying to sell the franchise but also would be receptive to adding a minority owner with a substantial stake and has had advanced discussions with at least one local businessman.
Cohen wanted to complete the sale to Sports Properties, but the NHL recently balked because the buyer, a public company, does not have a primary investor with a substantial equity stake. Sports Properties hoped to buy the team through money raised from an initial public offering in 2008, but the league wants any new ownership group to have a go-to person who has the willingness and resources to finance expenses.
As part of the deal, Cohen and the Panthers' minority owners would have received stock in the public company.
One official said it's possible the deal could be revived if the terms are changed to accommodate the NHL, but the Panthers are not optimistic that will happen and instead have been focusing on adding a partner who could relieve some of the financial burden on Cohen. The Panthers' ownership group has lost more than $100 million since Cohen bought the team in 2001. Cohen has declined to comment on ownership issues.
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