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Blog Entry

Hurricanes GM among 10 new ownership partners

Posted on: November 3, 2011 12:13 pm
 

By Brian Stubits

The Carolina Hurricanes announced the addition of 10 new people to the ownership group. Out of those 10 people, nine are based in North Carolina. Good day for 'Canes fans, adds a lot of stability to the franchise, etc.

“These new partners are devoted to the continued success of the Hurricanes in North Carolina,” principal owner and team CEO Peter Karmanos Jr. said. “Their investments in our team further solidify our franchise’s standing in the National Hockey League and the North Carolina sports community.”

From the team's release, here are the new partners.

Eight of the ten partners are: Michael Kahn, Capitol Broadcasting Company, Inc. (James Goodmon, A.J. Fletcher Foundation), Matthew Szulik, Ice Puck LLC (Orris Temple Sloan, Jr.), Clancy & Theys Construction (David Tim Clancy, Joel Thomas Irving Clancy, Kathryn Virginia Clancy, Robert Todd Clancy, Sarah Elizabeth Sturm), Jim Rutherford, Hurricanes Investment, LLC (Abel Zalcberg, Barbara Zalcberg) and Whitney Holdings Inc. (Frederick J. Whitney, Timothy M. Whitney). The remaining two investment partners have chosen to keep their partnerships private.

OK, nice broad list of pe ... WHOA! Jim Rutherford, as in the organization's general manager? THAT Jim Rutherford? That would be the one.

That just made for a really interesting dynamic in Carolina. Now the GM is also an owner. While Rutherford's job seems incredibly safe, what with him being the only GM the Carolina Hurricanes have known and him recently signing an extension through the 2015-16 season.

Imagine that board meeting when the partners are all getting frustrated with the team, saying it needs a new direction. That moment wouldn't be awkward or anything. Or imagine -- tough to, I know -- a situation where Karmanos fires Rutherford. Does he remain in the ownership group at that point? Even further, imagine when Rutherford finally vacates the GM seat but remains an owner, there will be a heavy shadow hanging over the new GM.

It's an interesting dynamic, for sure, although not the first time. Michael Jordan has been in the same position with the NBA's Charlotte Bobcats. And if everything works out with the team, it will prove as a great source of continuity and stability.

Photo: Getty Images

For more hockey news, rumors and analysis, follow @EyeOnHockey and @BrianStubitsNHL on Twitter.

Comments

Since: Oct 20, 2006
Posted on: November 5, 2011 9:41 pm
 

Hurricanes GM among 10 new ownership partners

How much he , Karmanos , swinddled them out ? You , Bob , don't know anything about business , that's for sure . You alreradysaid that Forbes has the 'Canes worth at about 153 million - 163 million bucks . Well , at what you want and what you will really get , are two different things . And , if somebody is willing to pony up money to buy into a pro team , any sport team , will have a lot of info. about how much said team is really worth . And , I don't think that they ponied up 153 million bucks either . More like 138 million .

 With that said , well it is good for the team , but it doesn't make it more stable . Construction isn't that good these days , and , it always makes you wonder how stable is Karmanos is these days . And , you have to wonder , as they said the same things when the team was in Hartford . Right up till they moved . On top of that , they haven't even sold out a home game . Unless you try to say that selling 16,000 seats is a sell out . While this town is more a basketball city , and college town . They are starting to taking a look at hockey . But , I don't know how long that will sit , as Shanahan is making the N.H.L.  into a " Shanahan's Pro Women Hockey League " . No hitting .



Since: Mar 18, 2008
Posted on: November 3, 2011 8:29 pm
 

Hurricanes GM among 10 new ownership partners

In the end... it shows that the Hurricanes are a very stable hockey team with no worries about going Bankrupt in the future. Great stability.



Since: Dec 10, 2007
Posted on: November 3, 2011 3:55 pm
 

Hurricanes GM among 10 new ownership partners

i wonder how much Rutherford invested. He makes good money no question, but he must've been saving up for this. good for him. a good and secure place to put your money in. 



Since: Jul 1, 2010
Posted on: November 3, 2011 1:53 pm
 

Hurricanes GM among 10 new ownership partners

 This is good news for Hurricane fans as long as Karmanos is the majority holder.  He gets to keep the cash and eligibility to sit on the BOG if he wants in the future.   One of Gary's top puppetmasters.   

Karmanos was trying to sell minority stake of the team for much more than fair market value last year and before.   Forbes and other sources list team as worth anywhere from 153-163 million currently, I wonder how much extra he swindled them for.   Maybe they were all avid hockey nuts.     Rutherford probably gets a piece of ownership as deferred compensation to make the books a little friedlier to close the sale.    I haven't seen the numbers, doubt I ever will, but I'll be shocked if the share of the team was sold close to market value.   

That's trivial stuff though, as long as Karmanos is still the majority holder, there should be little to no impact on the league or franchise operations.    My opinion of Karmanos is probably much lower than the average opinion of Uncle Gary.   He was trying to sell portions of the team with money back gaurantees after 5 years.   From what I understand, he'll use the money to probably pay down the team's debt.  

The whole scenario probably really helps his networth and sets him up to make even more later without giving up anything.   Hurricane's payroll will still be pretty close to the cap floor.    I wish I knew how much the new owners spent and % they received for it.


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