I Think Terry Pegula Is Going To Be The Next Owner of The Buffalo Bills

[BillsImpossible]

Terry Pegula is probably the one guy that makes the most sense.

If Pegula wants to buy the Bills, he's going to do it. I hope he does. He's not the type to talk much, he's busy getting things done in downtown Buffalo.
He has the most money out of any prospective owner, and his net worth continues to climb even after spending hundreds of millions of dollars on the Buffalo Sabres. He can build a new stadium wherever he wants, and he's also in the real estate business.

He's got the perfect opportunity sitting right in front of him, or should I say, next to him?

The situation seems like it is meant to be.

New York State and the NFL would be more than happy to have an owner privately finance a new stadium in downtown Buffalo without taxpayer money.
All 32 owners would approve.

If Terry Pegula makes a bid to purchase the team, I think the "Trust," can trust him the most, and will say yes to the deal.

Terry Pegula is very interested in the NFL.

Sabres owner buys NFL agency firm

http://espn.go.com/nhl/story/_/id/7325044/buffalo-sabres-owner-terry-pegula-buys-nfl-player-agent-company

BUFFALO, N.Y. -- Having spent hundreds of millions of dollars on hockey over the past year, Buffalo Sabres (http://espn.go.com/nhl/team/_/name/buf/buffalo-sabres) owner Terry Pegula has turned his attention -- and deep pockets -- to the NFL and the player's side of the ball.

http://www.cbssports.com/nfl/writer/jason-la-canfora/24504283/observations-likely-sale-of-bills-could-speed-up-nfls-race-to-la

Buffalo Sabres owner Terry Pegula could be the white knight who keeps the team planted as is. He has a very strong bond and ties to the area and his name was making the rounds among other owners during these meetings as someone who is expected to be a part of this process. Pegula is a multi-billionaire who has found riches in both the natural gas and real estate industries. His stock is rising given that his net worth has escalated in the past year, based primarily on his natural gas company.

[Ed]

Wouldn't owning an NFL player agency firm be some kind of conflict of interest? That firm he just bought even represents Marcel Dareus. Can you own an NFL team and agencies that represent players at the same time?

[SpikedLemonade]

After he invests all that money for the team and what you say is a privately funded stadium, is he also willing to run the team at a loss rather then recover some reasonable rate of return for his huge investment?

Why?

Just because he loves the citizens of Buffalo?

The Bills made $32M a year recently without an expense for the cost of money (or opportunity cost if not loan interest) because Ralph bought the team for $25K in 1959, had rent subsidized and leasehold improvements predominately paid by the county and did so mostly due to TV sharing revenue.

Yet Terry Pegula is going to invest $1.5B to $2B on a play that the City of Buffalo is about to explode to become hottest real estate market in the US?

Terry may buy the team but he will get as much public funds as he can manipulate and start to raise the cost of attending a game dramatically.

[BillsImpossible]

Wouldn't owning an NFL player agency firm be some kind of conflict of interest? That firm he just bought even represents Marcel Dareus. Can you own an NFL team and agencies that represent players at the same time?

I don't see a conflict of interest if the agency represents players from all over the league.

He doesn't own a casino...that's a conflict of interest.

[BillsImpossible]

After he invests all that money for the team and what you say is a privately funded stadium, is he also willing to run the team at a loss rather then recover some reasonable rate of return for his huge investment?

Why?

Just because he loves the citizens of Buffalo?

The Bills made $32M a year recently without an expense for the cost of money (or opportunity cost if not loan interest) because Ralph bought the team for $25K in 1959, had rent subsidized and leasehold improvements predominately paid by the county and did so mostly due to TV sharing revenue.

Yet Terry Pegula is going to invest $1.5B to $2B on a play that the City of Buffalo is about to explode to become hottest real estate market in the US?

Terry may buy the team but he will get as much public funds as he can manipulate and start to raise the cost of attending a game dramatically.

Terry don't need no stinkin' public funding.

If the team is worth $3 billion 30 years from now, the investment will pay off big.

[SpikedLemonade]

Terry don't need no stinkin' public funding.

If the team is worth $3 billion 30 years from now, the investment will pay off big.

I would hope the team plus the stadium would be worth $3B is 30 years, but that is not a good rate of return for 30 years.

So Terry is doing this just because he likes people from Buffalo?

It is his charity.

You do realize he made his money elsewhere and not on the ownership of sports teams?

Yet one day he woke up and decided to become a charity.

Whoever buys this team buys it on the assumption of a predominately public funded stadium in Buffalo or a tacit agreement by the NFL that they will allow him to relocate the team if said stadium is not built by the expiry of the current lease.

[BertSquirtgum]

I would hope the team plus the stadium would be worth $3B is 30 years, but that is not a good rate of return for 30 years.

So Terry is doing this just because he likes people from Buffalo?

It is his charity.

You do realize he made his money elsewhere and not on the ownership of sports teams?

Yet one day he woke up and decided to become a charity.

Whoever buys this team buys it on the assumption of a predominately public funded stadium in Buffalo or a tacit agreement by the NFL that they will allow him to relocate the team if said stadium is not built by the expiry of the current lease.

You want the Bills to move so badly that it's sickening.

[Skooby]

Will Pegs get the locker rooms fixed up real nice again & have the team become the worst in the league ?? Who cares because the Bills are going nowhere if he buys them !!

[SpikedLemonade]

You want the Bills to move so badly that it's sickening.

Wrong again TurkeyNuts.

I want the Bills to stay in Buffalo. They are not going to Toronto. Toronto is 20 years away from possibly getting a NFL team and it won't be the Bills.

I believe as long as there is the availability of public funds (75%) for a new stadium, the Bills will remain in Buffalo.

No or not enough public funds, then they are gone. The NFL is demanding a new stadium. Minny threw in $500M in public funds.

I think the new owner can raise $100M towards his share of the stadium with PSLs like Minny is doing.

As long as Buffalo fans are willing to pay league average prices and PSLs, the team will get the support it deserves.

No one is talking about the issue of corporate suites.

If I recall correctly, the last real threat of the Bills relocation was in the late 90's when the corporate suite leases came up for renewal. Some credited Doug Flutie for creating the excitement at that time to get the suites sold. Do you recall that?

Can Celino & Barnes buy a couple more suites this time in a new stadium at much higher prices?

[BillsImpossible]

I think Pegula is going to outbid everyone for this team, and this city.

[Skooby]

Can he own the Sabres as well as the Bills ? Yes he can !!

Cross-ownership ruleTeam owners are now allowed to own teams in multiple major sporting leagues, but those teams need to be in the same city (unless there is no NFL team in the other city). Buffalo native Jeremy Jacobs owns the Boston Bruins, but would have to sell that team in order to become the majority owner of the Bills. Seattle Seahawks (http://www.sbnation.com/nfl/teams/seattle-seahawks) owner Paul Allen can also own the Portland Trailblazers because Portland doesn't have an NFL market.
Ironically, this rule change was opposed by Ralph Wilson in 1997, when NFL owners lifted restrictions on other sports' owners from purchasing an NFL franchise. To that point, NFL owners collectively wanted their team owners concentrating on football.

[Dr. Lecter]

Can he own the Sabres as well as the Bills ?

Yes

[SpikedLemonade]

I think Pegula is going to outbid everyone for this team, and this city.

Do you think he will also bring a NBA and MLB team to Buffalo as well?

[IlluminatusUIUC]

I don't see a conflict of interest if the agency represents players from all over the league.

What? It's an enormous conflict of interest regardless of where the players play. He would have to sell the agency to be an owner.

[Dr. Lecter]

Do you think he will also bring a NBA and MLB team to Buffalo as well?

Are there teams in those leagues here now?

[BillsImpossible]

Will Pegs get the locker rooms fixed up real nice again & have the team become the worst in the league ?? Who cares because the Bills are going nowhere if he buys them !!

Are you trying to be negative just for the sake of being negative?

Holy crap.

[SpikedLemonade]

Are there teams in those leagues here now?

Well of course not.

However, if Terry is feeling generous with his love for all that is Buffalo, perhaps he can bring basketball back to Buffalo and change Buffalo from a minor league baseball city to a major league baseball city.

Terry made his money through fracking didn't he? I thought it was mostly oil and gas.

[Dr. Lecter]

Well of course not.

However, if Terry is feeling generous with his love for all that is Buffalo, perhaps he can bring basketball back to Buffalo and change Buffalo from a minor league baseball city to a major league baseball city.

Terry made his money through fracking didn't he? I thought it was mostly oil and gas.
There is a huge difference between keeping a team in a place and moving one.

And, fwiw, his investing a ton of money in downtown Buffalo with no public support. The Harbor center is him.

Not to say he would do the same for the Bills, but don't discount that his demand for funds will be less than many others

[Skooby]

Are you trying to be negative just for the sake of being negative?

Holy crap.

Well, his tenure as the Sabres owner has been tedious. Least amount of NHL goals ever scored ??

[BillsImpossible]

Do you think he will also bring a NBA and MLB team to Buffalo as well?

If Pegula spends the money to build a new stadium with a retractable roof, why not?

Buffalo is a huge basketball town. I'm not a fan of the NBA, but if Buffalo had a basketball team again, I'd be a fan.

Same goes for baseball. If Buffalo had a professional MLB team, I'd be a fan.

I think you're on to something here, SpikedLemonade.

[Skooby]

Well of course not.

However, if Terry is feeling generous with his love for all that is Buffalo, perhaps he can bring basketball back to Buffalo and change Buffalo from a minor league baseball city to a major league baseball city.

Terry made his money through fracking didn't he? I thought it was mostly oil and gas.

Maybe he can bring industry back, like the most bars per capita.

[BillsImpossible]

Well, his tenure as the Sabres owner has been tedious. Least amount of NHL goals ever scored ??

The one word nobody in Buffalo ever likes to hear about their Sabres or Bills...

REBUILDING.

Bills went in rebuilding mode last year, same with the Sabres even though nobody from either franchise would ever admit it.

[BillsImpossible]

Maybe he can bring industry back, like the most bars per capita.

Interesting that you mentioned bars. Before Terry Pegula owned the Sabres, Cobblestone was the only bar nearby.

Today is totally different. The whole area is under a major transformation. People, and new businesses want to be around what's next.

And they're coming in droves!!!!

When is the last time you saw so much construction going on in downtown Buffalo?

NEVER in my lifetime.

[SpikedLemonade]

There is a huge difference between keeping a team in a place and moving one.

And, fwiw, his investing a ton of money in downtown Buffalo with no public support. The Harbor center is him.

Not to say he would do the same for the Bills, but don't discount that his demand for funds will be less than many others

Demanding public funds for a new stadium has nothing to do how wealthy the NFL owner is. They demand public funds because they know they will get the funds and the NFL owners will all support their efforts to do so.

Rich guys are not rich because they are stupid. They will take all the free money that they can get and rationalize it by saying "other owners did it as well".

Terry can still develop real estate projects on his own around a new stadium that is financed by the public.

Minny is building a $1B stadium but it is in the Twin Cities where real estate costs more than Buffalo. The public money there was $500M.

Lets say the new stadium in Buffalo was to cost only $800M in today's dollars as a comparison.

I see the financing being $600M from the public through the various levels of government, sales taxes, tax concessions, lotteries, etc. and $200M from the new Bills owner ($100M which he will raise through PSLs like Minny).

Does that sound about right to you?

[SpikedLemonade]

If Pegula spends the money to build a new stadium with a retractable roof, why not?

Buffalo is a huge basketball town. I'm not a fan of the NBA, but if Buffalo had a basketball team again, I'd be a fan.

Same goes for baseball. If Buffalo had a professional MLB team, I'd be a fan.

I think you're on to something here, SpikedLemonade.

Can your parents afford to buy you all those tickets or are they going to rent out your room in their basement while you are away at school for the money?

[Skooby]

Can your parents afford to buy you all those tickets or are they going to rent out your room in their basement while you are away at school for the money?

Oh man, next thing will be their hourly rate charge.

[SpikedLemonade]

Maybe he can bring industry back, like the most bars per capita.

Perhaps Terry knows that laying under the City of Buffalo is a natural gas reserve worth $40B and he intends to frack the **** out of every Buffalo piece of property he can get his hands on.

He can blame any pollution on the now defunct steel industry in Buffalo.

Pegula holds business interests in natural gas development, real estate and professional sports...

http://en.wikipedia.org/wiki/Terrence_Pegula

[BillsImpossible]

Can your parents afford to buy you all those tickets or are they going to rent out your room in their basement while you are away at school for the money?

Are you trying to be rude? Unlike yourself, I own my own business, paid my own way through college thanks to the GI Bill and never asked my mom or dad for a penny.

For Christ's sake, lighten up a little!

[BertSquirtgum]

If Pegula spends the money to build a new stadium with a retractable roof, why not?

Buffalo is a huge basketball town. I'm not a fan of the NBA, but if Buffalo had a basketball team again, I'd be a fan.

Same goes for baseball. If Buffalo had a professional MLB team, I'd be a fan.

I think you're on to something here, SpikedLemonade.

Watching basketball in person is a lot better than watching it on tv.

[SpikedLemonade]

Pegula founded East Resources (http://en.wikipedia.org/wiki/East_Resources), a natural gas drilling company that profited heavily upon the discovery of deep layers of natural gas in the Marcellus Formation (http://en.wikipedia.org/wiki/Marcellus_Formation) and the development of the hydraulic fracturing (http://en.wikipedia.org/wiki/Hydraulic_fracturing) process to recover said gas. Pegula eventually sold the Pennsylvania, New York, and Rocky Mountain assets of the company to Royal Dutch Shell (http://en.wikipedia.org/wiki/Royal_Dutch_Shell) for approximately $4.7 billion. East Resources, Inc. continues to hold oil & gas assets in West Virginia.

http://en.wikipedia.org/wiki/Terrence_Pegula

Interesting.

He may be planning on fracking Buffalo up the ass.

"Hey, as long as he keeps the Bills in Buffalo, I don't care if the Bills ever win another game."

[ct bills fan]

I initially thought Pegs would be perfect for the Bills, BUT read somewhere that he's a huge hockey fan and not really a football fan. I think Golisano is more likely. He lost out in the LAD bid and is itching for another pro team. He's worth $1.9b which is half of pegs but still plenty

[YardRat]

Don't forget the NFL fund to kick in $150mil for a new stadium when figuring out how to divvy up the cost.

Also, Buffalo can barely support the two major professional franchises that it has now, the NBA is never coming back without the area losing the Bills or Sabres first. Even then, it would be extremely iffy.

[SpikedLemonade]

Don't forget the NFL fund to kick in $150mil for a new stadium when figuring out how to divvy up the cost.

Also, Buffalo can barely support the two major professional franchises that it has now, the NBA is never coming back without the area losing the Bills or Sabres first. Even then, it would be extremely iffy.

I forgot about the $150M NFL Fund. I guess that could pay the extra for a downtown dome at a cost of $950M.

We are talking completing this new stadium 8 to 10 years from now so perhaps $800M is unrealistic for new stadium.

[whkfc]

I heard possible rumor over the weekend was told give it a couple days. And here it is.

[WagonCircler]

He would have to sell the agency to be an owner.

Yeah. So what. So he sells it. big ****** deal.

[Buckets]

Yes

I thought it was reported on this site that Jacobs would have to sell the Bruins or put the Bills under a sons name if he wanted to buy the Bills?

[Skooby]

I thought it was reported on this site that Jacobs would have to sell the Bruins or put the Bills under a sons name if he wanted to buy the Bills?

Yes, your point is..?

[IlluminatusUIUC]

I thought it was reported on this site that Jacobs would have to sell the Bruins or put the Bills under a sons name if he wanted to buy the Bills?

The rule applies to having pro teams in other NFL markets. Paul Allen can own the Seattle Seahawks and the Portland Trailblazers because Portland is not an NFL city. Stan Kroenke had to transfer the Colorado Avalanche to his son to buy the St. Louis Rams because Denver is an NFL city.

[Ed]

What? It's an enormous conflict of interest regardless of where the players play. He would have to sell the agency to be an owner.
Yeah, that's why this article makes it seem like Pegula is less likely to buy the Bills. If he was serious about bidding on the Bills I don't see why he would go through with purchasing the sports agency right now. Makes me believe he's already decided not to pursue the Bills.

[trapezeus]

pegula seems to be more about leveraging the sports into a revitalized downtown and a bigger picture. he has the money to spend, and if he believes in buffalo as a place where hotels, and other businesses can thrive and he can own the real estate, i think depending on the economics, he will be willing to have his sports teams be loss leaders to generate profits elsewhere.

However, he also genuinely seems like he's into the sports scene here. He has an affiniity for these teams. he was never an owner and let the guy he inherited hang himself. and he started a rebuild. it's not right in my mind to say he bought the team, they went to last place, it's entirely on him.

if he comes in to the NFL owners and shows that he bought a hockey team, developed the hockey culture with more facilities, more ancillary business and has the intent to make his team a winner in the long run, i think the NFL brass will say, "this guy is pretty savy and is interested in making the bills a stable long term franchise."

i think the NFL wants the next owner to have a 20-30 year commitment. they like the league structure, moving a team out of buffalo will possibly involve having an AFC east team on the west coast. no one wants that. no one wants to restructure the conferences and divisions. and while the canadian dollar is on par to the US, it is a highly leveraged economy at this point with a similar overheated housing market. Do you think the NFL wants the currency headache if the CAD retreats to 1990 levels? Do they want the problems the NHL had in the 90's with canadian teams struggling to spend to the USD based league?

if the NFL can get a new stadium from him with minimal NFL loans and less reliance on NYS money, it's good for them.

Buffalo can support this team with higher prices. No one wants that, but if it translated into a better stadium experience and a better team, people would do it.

i like buffalo as a two sport town with one owner who has a longer term vision. One that sees the importance in build up a town through his teams. he wants to put his teams on the map and he has the resources to do it privately to some extent. I don't think it's a charity for him. it's a calculated risk he'd be willing to take if he does it.

[WagonCircler]

pegula seems to be more about leveraging the sports into a revitalized downtown and a bigger picture. he has the money to spend, and if he believes in buffalo as a place where hotels, and other businesses can thrive and he can own the real estate, i think depending on the economics, he will be willing to have his sports teams be loss leaders to generate profits elsewhere..

But that's just it, the NFL is never a loss leader. The teams are guaranteed a profit by the television contracts. The franchises escalate in value like nothing else on Earth. There is zero downside to buying the Bills when you have money like Terry P.

I'm VERY hopeful that he's got the inside track.

Remember when he was trying to buy the Sabres?

No?

Nobody does.

That's because he did it quietly, like a BOSS. The way the real money guys do it.

Suddenly, one day, seemingly out of the blue, the headlines read "Sabres sold to Terry Pegula."

[DesertFox24]

No owner for any sports team is going to privately fund a stadium, especially considering it could be used to host other events. The PSL cost if they did do it would be astronomical and prohibitive for any fan base to buy it.

I expect an owner to put between 200 to 400 million for a new stadium with the rest coming from public funding.

Also lets be honest with ourselves these guys are not billionaires because they are not savy business people, they know they have the city of buffalo by the prevebial b@ll$ and will demand that they get money for the new stadium or they will just move the team. The stadium will be used for NCAA tourny games, a bowl game probably, concerts, and other activities.

[trapezeus]

not a lot of acts filling 60,000 seat stadiums these days.

i think they need to think really big if a new stadium is part of the deal. i think the structure will need to be a stadium as well as an attached theather/shopping center/convention center. somthing of that vain.

I meant the loss leader being more so in the short term. to plunk down $1.5bn for team and stadium funding won't earn back your principal investment for a while. it's definitely a profitable endevor, but there is debt you have to pick up. to recover principal faster, you have to assume you are making money on the real-estate development at and around the stadium.

[BillsImpossible]

No owner for any sports team is going to privately fund a stadium

Jerry Jones did. Since Jerry World was built (AT&T Stadium) the site has hosted a ton of events from boxing, to soccer, to college football games, to Monster Trucks, to U2, to rodeo, to basketball games, and WrestleMania 32 in 2016.

[BillsImpossible]

pegula seems to be more about leveraging the sports into a revitalized downtown and a bigger picture. he has the money to spend, and if he believes in buffalo as a place where hotels, and other businesses can thrive and he can own the real estate, i think depending on the economics, he will be willing to have his sports teams be loss leaders to generate profits elsewhere.

However, he also genuinely seems like he's into the sports scene here. He has an affiniity for these teams. he was never an owner and let the guy he inherited hang himself. and he started a rebuild. it's not right in my mind to say he bought the team, they went to last place, it's entirely on him.

if he comes in to the NFL owners and shows that he bought a hockey team, developed the hockey culture with more facilities, more ancillary business and has the intent to make his team a winner in the long run, i think the NFL brass will say, "this guy is pretty savy and is interested in making the bills a stable long term franchise."

i think the NFL wants the next owner to have a 20-30 year commitment. they like the league structure, moving a team out of buffalo will possibly involve having an AFC east team on the west coast. no one wants that. no one wants to restructure the conferences and divisions. and while the canadian dollar is on par to the US, it is a highly leveraged economy at this point with a similar overheated housing market. Do you think the NFL wants the currency headache if the CAD retreats to 1990 levels? Do they want the problems the NHL had in the 90's with canadian teams struggling to spend to the USD based league?

if the NFL can get a new stadium from him with minimal NFL loans and less reliance on NYS money, it's good for them.

Buffalo can support this team with higher prices. No one wants that, but if it translated into a better stadium experience and a better team, people would do it.

i like buffalo as a two sport town with one owner who has a longer term vision. One that sees the importance in build up a town through his teams. he wants to put his teams on the map and he has the resources to do it privately to some extent. I don't think it's a charity for him. it's a calculated risk he'd be willing to take if he does it.

Great post. You nailed it with your opening sentence.

"Pegula seems to be more about leveraging the sports into a revitalized downtown and a bigger picture."

The bigger picture has a lot to do with real estate. I don't even think it's a calculated risk. If he builds it, they will come. Buying the Bills and using both of his teams to develop and revitalize downtown Buffalo seems like a no brainer.

If Terry Pegula does buy the Bills, can you imagine what he and his people are going to do with downtown Buffalo?

If a new stadium with a retractable roof is built, there's your new convention center.

Can Terry Pegula find a way to build a new stadium that connects perfectly with the Outer Harbor, and First Niagara Center?

Can you imagine how much a new stadium would help the property values in downtown Buffalo?

Exciting time to be living in Buffalo.

[Turf]

I would be all for that. At least Terry wants to rebuild Buffalo, and wants to win. I wonder if he were ever a Bills fan like he was a Sabres fan.

[trapezeus]

i don't think he is a huge football fan. but his wife is original buffalonian and i think he identifies through her. i think he knows the importance of the team to the city.

bottom line, i just think of the guys who's names are bandied about as the next owner, he seems the best for the region. perhaps there is someone else that will surface that is more of a football guy, but to me, the jacobs and pegula would make me happiest.