Gerbe makes his choice

Nathan Gerbe has decided to go pro, multiple sources have told The News. The Sabres will be getting an electrifying player and a dynamic person.

---John Vogl

Comments

[Sports and Business]

I agree on the Kevin Lowe thing.

I would like to see some payback in whatever form the Sabres can muster against those guys. On the ice, in free agency, on waiver wire I don't care but GET EVEN!

[ElmaGolf]

"Elma....just joshing you on the Roberts thing. Hey, I thought Pominville would be horrible without Briere, so we all can't bat 1.000"

Sorry Tom - missed the self-deprication in the Roberts' line (written word is a pain sometimes). I thought you were equating the Penguins success with Roberts' veteran presence.

Hey, to be fair, I didn't think Hossa would be as successful a pick-up as it was, so sometimes the "risky move" does work (No guarantees either way). Penguins are going to have some trouble keeping that team together once Staal, Malkin, and Fleury hit the RFA Markets (as well as all the UFA "role players" they have now). I think Kevin Lowe forever changed the dynamics of RFA safety with his "poaching".

[Tom]

Elma....just joshing you on the Roberts thing. Hey, I thought Pominville would be horrible without Briere, so we all can't bat 1.000

S+B.....it would be great if we get some long term stability here in ownership, but if you look back at what has taken place over the past 2 years...it all really looks to add up to a sale. I know how great of a market Buffalo is, but I don't know who can step up and match Basillie dollar for dollar. In all probability, the NHL wants to squeeze the guy for an expansion fee that all the owners can share. It just seems to me that the Sabres have run the team like a lame duck. Sure, they signed Vanek and Roy, but you have to sign SOMEBODY!

We shall see.

[TJ]

They signed Gerbe, good. Can't wait to see what he can do at this level. Now I hope they sign Buffalo native Tim Kennedy from Michigan State. It would be great to have a hometown kid like Kennedy playing for the Sabres.

[Chet Zeshonski]

In the wake of this expected piece of good news, I'll save you management-bashers the trouble and write your next article for you:

"Sure, they signed Gerbe, but just wait until his first contract is up and we lose him to the Rangers. Just wait!"

[J]

It is also possible that Golisano, Bettman, Balisillie, and the IRS faked the moon landings. I am certain that they are Bettman is basically responsible for hiding the popularity of hockey at Area 51. I bet if you check Balisillies programming language of the blackberry technology you'll find a map to where the Lindberg Baby is. I am also quite certain that it was Tom Golisano himself who framed Roger Rabbit.

[ElmaGolf]

"Here is what I said back in February. Look at the post near the top...pretty much what I just said...but IN FEBRUARY!"

OK - so your point is that "you" (in February) corroborated "you" (in May)?

So you outlined all the reasons the Sabres should be sold by now, and it still hasn't happened (and appears that the Sabres walked away from at least one offer that would have fit their "devious master plan" perfectly).

Your point on the "Player Salary Tax" might have been valid, except that after not signing Druriere, Golisano then "committed" most of his "sale profits" by locking up $50MM on Vanek & $24MM on Roy. If the team's not sold by early next fall, it's possible your whole point may be invalidated by the signing of Pomminville & Miller.

I guess it seems that this underlying belief that the Sabres don't care about the product and are only maneuvering to limit their taxes seems a bit too cynical to me. I'm not denying that business considerations exist, but the extent that you spin all their moves into some grand elaborate scheme (including the whole "Browns-like" move & replace scenario) seems a bit excessive. Is there someplace in your mind where you envision Tom Golisano watching "Major League" and saying "that's the type of owner I want to be!"?

[ElmaGolf]

Tom wrote - "I won't even mention the part where I call Gary Roberts a needed playoff player and Elma calls him a waste of space!"

That's fair - then I won't mention the part that I never said that or that it's a piece of cr@p misstatement of my views.

I will mention that my comments were in response that you felt the Sabres should have traded more of their future away in 2007 for two rent-a-players like Bill Guerin & Gary Roberts. What I said was that there are no guarantees that such moves would "bring home the Cup", so it wasn't unreasonable for the Sabres to think they had enough leadership (in Drury & Briere) to not trade away more of their future.

You may be inferring a "waste of space" comment by me saying that the teams that traded for Guerin and Roberts last year didn't have much playoff success (unless you consider the Penguins getting knocked out in 5 a success). Now, if you consider Roberts a "needed playoff player" because he missed 5 of the 9 Pens playoffs games this year, and has no points except for 2 goals in a romp over Ottawa, that's your opinion. But I think the Penguins "needed" a little more than his 9 minutes of ice time and -2 rating.

[Sports and Business]

Calm down! There is no way the NHL is moving a franchise from Buffalo.

Why?

The NHL has to come to grips with the fact that they are Tier II when it comes to professional sports...right above poker and lacrosse. If the Sabres AND Bills leave Buffalo, Lacrosse makes huge competitive leap into Buffalo. NHL nightmare.

Buffalo is a "net exporter" of hockey fans to other parts of the country. Silver lining of snow birds. Ask Direct TV and Satellite Radio if they want The Sabres in Hamilton.

Buffalo is a high percentage (High percent of a small number) TV rating market. Makes NHL TV contract more saleable to DOMESTIC TV. The problem selling hockey is a USA thing, not a Canada thing.

Kill the fan base in Buffalo and you push the NHL further into obscurity.

Oh, and one last little diddy to take care of taxes...With the Bills checking out, the value of this franchise skyrockets. Tom, I loved your analysis but another owner will appreciate Buffalo for what it is, more valuable to The NHL than the NHL is valuable to Buffalo. And Tommie Boy can use the value of his equity to lever up somehwere else to make money. Why pay ANY taxes?
Go Bandits!

[Tom]

Here is what I said back in February. Look at the post near the top...pretty much what I just said...but IN FEBRUARY!

http://buffalonews.typepad.com/sabres/2008/02/another-cup-for.html

I won't even mention the part where I call Gary Roberts a needed playoff player and Elma calls him a waste of space!

I would hope the News would contact an independent accountant to verify what I have said and show how management's actions the past year and change could be viewed as preparing for a sale.

[Tom]

Elma...

Let him sell the team, he has every right to. I for one have said before that if he doesn't sell the team by the end of the 2008-09 season, he is a fool.

I have also laid out all the facts that lead me to believe a sale is possible if not probable. I will try to find the post in the blog archive. My point of contention is that when a management cuts costs, doesn't talk to the press or public, and doesn't seem too disheartened with a seemingly dismal backstep....you need to look around and ask why.

I'll give a cliffnotes version why I feel the team will be sold.

1)Motivated Buyers...that was just confirmed as Basillie came after the Sabres.

2)Strong Canadian Dollar....The US Dollar is pretty much at par with the Loonie. When Golisano purchased the Sabres, a USD was worth $1.60 or so canadian. That eliminated cities like Winnepeg, Hamilton, and the province of Quebec from being a viable NHL city. Bettman himself said last year that Winnepeg can now support a team. Basillie has deep pockets and makes Hamilton viable as well.

3) Capital Gains Tax....Long term tax is now 15%. Barak Obama is on record saying that he will raise that tax to at least 28% to match Bill Clinton administration, but could go higher if needed. Tom Golisano will get taxed on the majority of his profits at that rate. If Golisano were to fetch a $150 million profit as expected, that is a penalty of $20 million+ that he would have to pay in taxes under an Obama administration.

4)Player Salary Tax.....the only part of Golisano's gains that would not be taxed at 15% is that of the remaining salary of players under contract that have yet to be depreciated. The IRS looks at players as an investment, not an expense when it comes to franchise sales. If Basillie buys the Sabres and nobody is under contract...then he is really just buying the name of the team, and the right to do business in the league under that name. In that case Golisano's $150 million profit will be taxed as a pure long term gain. If a player is under contract, that player is considered an asset of the organization and has a value and impact on future team performance and revenues. In this case, the IRS taxes the remaining portion of commited salary as a short term tax. So say the Sabres have 7 players under contract at the end of next year with $30 million in commited salary going forward....which is pretty much the case. Golisano would be taxed 35% on that first $30 million, and 15% long term gain on the rest..$120 million. That is $6 million extra in taxes.

Now...imagine for a moment that you were thinking about selling your team in the near future. Would it make sense to sign your best two players to 7 year $50 million contracts? Or how about your best defenseman to a 5 year $30 million contract? What people missed in all of the Drury, Briere and Campbell fiasco was that it wasn't just avoiding paying dollars to the players themselves...but also to the IRS. With those three under contract next year at a time of sale of the franchise, there is a good chance that those contracts would lead Golisano to get taxed 35% on over half of his profits instead of 15% on the majority. That would be an extra $12 million or so in taxes.

By selling the team over the next 12-15 months, Golisano will save just under $40 million in taxes, assuming Obama is the next president, which has a 65% chance of going down. I said it before in this blog that I fully expect it to happen. I haven't been ranting because I like to type...it is because I have been trying to warn of what the true motives have been all along.

Golisano has zero leverage except saying he wants the team to stay in Buffalo. There isn't a local buyer that can compete with Basillie. Golisano checked out already. He must really love the Sabres...showing up to 3 games this year. He is just stretching it out to get Basillie to pony up his final offer, and to maximize his own tax benefits.

This was the plan the whole time. Larry Quinn will make lifechanging money by selling the team, and will still have control of the arena going forward. A deal could always be struck with Bettman that allows Basillie to move the team after a year or two. Quinn will continue to pump state money into the surroundings of the Arena. At a point when there is actual progress on the canal project...5-10 years down the line, Buffalo will be in line to get an expansion team, in the spirit of the Cleveland Browns.

Watch for Golisano to use the Buffalo Bills as an excuse as he walks away from the Sabres. This is poetry in motion folks. I give Quinn full credit for pulling it all off. He may stink at putting together a hockey team, but he is a smart and savy buisnessman.

[All Bucked Up]

Did Bucky approve the contract terms?

[ElmaGolf]

Tom (and those with similar sentiments),

What seems to be your problem with the story?

The story didn't say that Tommy G. put up a huge "FOR SALE" sign - it said that Balsille contacted Golisano and basically that Tom would listen to an offer. OK - any businessman out there that wouldn't "listen to an offer"? If Balsille gets desparate and offers $200MM for a team you invested $50MM in (throwing out hypothetical #s), would you perhaps take the call?

Is your problem that Golisano "took the call?" do you believe that shows he's "not committed" to the fans of Buffalo? If so, he definitely went above and beyond the call of duty in insisting that the team not be relocated from Buffalo.

So, it sounds like Tom Golisano probably walked away from tens of millions of dollars because he didn't want Buffalo to lose a sports franchise.

So, does this support the theory that Tom G. is just a "cheap bast@rd" who doesn't overpay free agents so he can make a few extra million a year?

Or just maybe, does is just validate what Tom G. has been saying all along - that he wants this team to be a great, affordable asset for the community for years to come?

He slashes ticket prices so the sport can be family friendly. Cheap Bast@rd or Concern for Community?

He tells people he won't overpay on salaries because an unprofitable entity does not have long term viability. Cheap Bast@rd or Concern for Community?

He walks away from Tens of Millions of potential profits because the buyer won't commit to keeping the team here. Cheap Bast@rd or Concern for Community?

To all you people who are upset that he may be fielding offers, you need to get a grip. He's making sure the team doesn't move. What's your problem with that? So someone else may own the team. What's your problem there? - most of you seem to think he's no good at running a team anyway.

Seriously, the Golisano bashing that goes on here is pathetic. On days like this, I wish Ozzie Guillen was Tom G's press agent (or press agent for the Sabres in general).

Reading the story about Guillen's blasting the fickle press (and indirectly, the fickle fan base), all I could think about was how much his statements could be addressed to the likes of Bucky Gleason and all the fans who think the team "died" last July.

http://sports.espn.go.com/mlb/news/story?id=3382020

It might go something like this:

"We made it to the ECF the last 2 years, and we're horse[bleep]," Guillen said, "The Rangers haven't made the ECF in 14 years, and they're the [bleeping] best. [Bleep] it, we're good. [Bleep] everybody. We're horse[ble ep], and we're going to be horse[bleep] the rest of our lives, no matter how much we win.

"We are the [bleep] of New York. We're the Buffalo [bleep]. We have the worst management team. These guys' got four ECF showings in 10 years, and they're the [bleeping] horse[bleep] management."

And I think even Ozzie would be speechless about the recent days' "doomsday" talk about Nate Gerbe. Buffalo [bleeping] News, indeed. (great line by Punch on the "cut & paste journalism" below).

(Sorry, Chad, I know you've been doing the heavy lifting recently for the calm & rational perspective. I've been keeping some distance but thought I'd jump back in to help a little.)

[J]

this news about the sale has been floating around for a while. Besides didnt Balsillie just buy the Wild?

[Casey]

Tom's not blowing smoke.

http://www.cbc.ca/sports/hockey/story/2008/05/06/nhl-sabres-balsillie.html

Tommy G was interested up until the whole "move the team" thing came up. That Balsillie guy just won't quit, will he? Get a clue asshat. No one wants to give you a team!

But the bigger issue is that yes, Tommy Boy looks to be hearing out offers to punt the Sabres.

[Amanda]

Tom - where did you hear this rumor? I'd like to know if it's substantiated or if it's merely someone trying to stir the pot.

Oh, and Bucky? Phhbbbtttt.

[Tom]

Good....Hamilton will be getting an exciting player.

Why no blog entry on the fact that Golisano has the team up for sale?

For those that support Sabres management, their silence and bunker mentality this year has just been confirmed as "running out the clock". Basille has contacted Golisano to buy the team, and Golisano is more than willing to sell, but he says he wants Basille to keep the team in Buffalo.

Where there is smoke, there is fire. Management's actions this season were disgusting, and I wouldn't be shocked if we are watching the Hamilton/Kitchner Sabres within 3 years.

Larry Quinn may get his wish to own the Sabres outright. Once the team leaves town and fans have a year or two to grieve, Quinn will start up an AHL team to occupy the vacant Arena. After a few more years of "developing" the waterfront and nearby area, Quinn will get an expansion team for the city and for the 3rd time hail himself as the man that saved hockey in Buffalo.

Pretty ironic the Gerbe signing happens the very moment the news that Golisano has the team up for sale leaks.

[JB]

In the wake of losing Daniel Briere to the Philadelphia Flyers, the Buffalo Sabres organisation has instituted the mandatory "One Wee Player" rule, signing five-foot-five B.C. standout Nathan Gerbe to an entry level contract...

[Dave]

http://youtube.com/watch?v=mFYLRrCxaRY

gerbe highlights...cant wait till hes doin this for the blue and gold

[tim]

the sabres managment once again proves its capability of mishandling its talent. signing a 5'5" kid? they could have pent that money and cap space on Jagr this off season or Anson Carter. What the heck were they thinking!

disclaimer - I was laying the sarcasm on pretty thick. I am happy they got this kid.

[Punch]

The Sabres' management have proven themselves to be asleep-at-the-switch idiots once again ... wait, oh - they signed the kid.

Never mind.

I'll just copy, paste and save my remarks above for when something happens that marginally warrants my blasting management.

[Zach]

So that month that I mentioned in the last post was extremely quick.

[Jan]

I'm an Amerks fan-- I'm sad I won't get to see him play until he's ready to play for the Sabres.

[Anne]

Yay! I was just writing in my blog how it'd be tough to choose between what's sure to be an exciting senior year of college and what's sure to be an exciting first pro year when I tuned in over here to see the decision was already made.

Yay!! I hope he keeps up his excellent play!

[Turd Ferguson]

Looks like Bucky can settle down now. Why does he think that the Sabres and their prospects have to operate on his timetable?