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NEWS: An update on the sale of the Portland Winterhawks:
The purchase price is listed as $5,850,000 USD. The new ownership group will be known as Winterhawks Sports Group LLC.
The sale is expected to be approved in the necessary Canadian and Oregon courts.
1/14
The purchase price is listed as $5,850,000 USD. The new ownership group will be known as Winterhawks Sports Group LLC.
The sale is expected to be approved in the necessary Canadian and Oregon courts.
1/14
First reported by @JeffMarek, Kerry Preete will be one of the primary owners. Michael Kramer is the second.
There may be other members of the ownership group, but they are not listed on any of the court documents.
2/14
There may be other members of the ownership group, but they are not listed on any of the court documents.
2/14
Included in the sales price are the majority of Portland's assets such as: All cash, intellectual property (I.e., 78 domain names and use of the Winterhawks logos), tangible personal property, rights associated with membership in the WHL, sponsorship contracts, and more.
3/14
3/14
The closing date for the sale is 12/31
After the Receiver approved the new owners, there were two conditions. Both "have been met or waived":
1) WHL Approval (League did approve)
2) A new lease for the Winterhawks practice facility
The Winterhawks will stay in Portland
4/14
After the Receiver approved the new owners, there were two conditions. Both "have been met or waived":
1) WHL Approval (League did approve)
2) A new lease for the Winterhawks practice facility
The Winterhawks will stay in Portland
4/14
The new owners are also taking on many of the liabilities including:
Anything owed to customers after cancelling last season, up to $200,000 as a result of a lawsuit against the WHL for allegedly misclassifying players as amateur athletes rather than employees, cont.
5/14
Anything owed to customers after cancelling last season, up to $200,000 as a result of a lawsuit against the WHL for allegedly misclassifying players as amateur athletes rather than employees, cont.
5/14
Liabilities continued:
Two leased vehicles, accounts payable owing to the WHL up to $10,718 and $38,347 USD, and all liabilities arising after the closing date that were incurred in the ordinary course of business
One main liability is excluded, "in respect to employees"
6/14
Two leased vehicles, accounts payable owing to the WHL up to $10,718 and $38,347 USD, and all liabilities arising after the closing date that were incurred in the ordinary course of business
One main liability is excluded, "in respect to employees"
6/14
Regarding employees: The new owners may make a written offer of employment to any employee at least 5 days prior to closing.
In the court documents obtained, "9 employees shall have accepted an offer" with the new ownership. Mike Johnston & Kyle Gustafson are among the 9.
7/14
In the court documents obtained, "9 employees shall have accepted an offer" with the new ownership. Mike Johnston & Kyle Gustafson are among the 9.
7/14
After reading the court documents, the new owners may make a written offer to any of the Portland scouts including those in temporary layoff/furlough. They would become "Transferred Contractors" and keep the same "active or inactive status & compensation" prior to the sale
8/14
8/14
At the start, 34 parties executed a confidentiality agreement and 6 offers were submitted by 6/30. Three were chosen to participate in a 2nd round, only one submitted a "competitive offer". The Receiver couldn't come to an agreement with that party. All 6 offers are sealed.
9/14
9/14
When the 2nd round failed to produce a competitive offer, a broker was retained by the Receiver to help with the sale. The broker had previous experience selling WHL teams. They would have received a 3% commission. It is believed the principal of that entity is Daryl Henry
10/14
10/14
On 9/23 the Receiver was contacted by the new owners and on 10/23 the diligence was completed allowing the process to move forward with league approval, as well as solution for the practice facility lease. The new owners placed a deposit of $312,500 USD as part of the sale
11/14
11/14
An important aspect of the sale is the new owners "agree to cooperate and execute any written assignment and assumption pertaining to the Standard Player Agreement as recognized by the WHL." A key aspect of the Standard Player Agreement is the education benefit for players
12/14
12/14
The sale price of the Winterhawks was impacted by the current situation with COVID-19, lost revenue from last season, and uncertainty pertaining to when fans will return to games. The majority of revenue for WHL teams comes from ticket sales.
13/14
13/14
Lastly, after the Winterhawks' previous owner defaulted on a loan, the Portland organization, and the Receiver, sought out a new owner by the start of the 2020-2021 WHL season. This sale accomplishes that goal.
14/14
14/14
