Searching for Investors
The Blues are in search of a new investor or possibly multiple new investors following the news that the private-equity firm Towerbrook Capital Partners is divesting it's interest in the organization.
The story ran in the Post-Dispatch yesterday and raises a wealth of questions as we head into the free agency period. Dave Checketts, owners of the St. Louis Blues, is now left trying to find a new investor to replace Towerbrook. Thankfully, it appears that Towerbrook is in no immediate rush, and that the team will still have their support until a new investor can be found.
This isn't good news by any means, but it isn't horrible news either. The team is not for sale and business will carry on as usual. However, if the team is unable to find a replacement soon, one must imagine this news will have an impact on the team's approach in regards to free agency and how it handles signing some of it's young skaters. Erik Johnson is due more money, but the amount he is offered could be considerably lower than it might have been prior to this story breaking.
As we all know the Blues have plenty of issues to address this summer, but if a suitable investor (or investors) is not found, the team may take a very cautious approach and avoid signing any big pay checks.
It is not exactly clear just how much in terms of percentages that Towerbrook controlled, but it is thought to be in the neighborhood of 66%. This number could be considerably higher, or possibly a bit lower, but the fact remains that they own a large majority. This situation could make a huge impact on what the Blues do this summer, and who returns next season, so pay attention to this space.