Does Pegula Make His Binding Bid a Lower $1B?

[SpikedLemonade]

I expect JBL/Toronto will not see this through to a final bid. Even if they could bid Over $1.2B, the PR damage has been done such that the Trust is unlikely to accept their assurances that they intend to keep the team in Buffalo.

Trump made a non-binding bid of $1B, but he is likely to see through Morgan Stanley's facade of a biding process and back out.

So Pegula being the only serious bidder could make a binding bid of $1B and walk away with the team. Even if he bids $1B, it is an open bid process so he could always bid more if necessary.

Why would Pegula bid against himself?

When it comes to a new stadium, I don't know what leverage Pegula has if he has no threat to relocate the team. That is why I see the Bills playing in the Ralph for decades to come.

Perhaps the various levels of government are dying to build a new stadium downtown among the urban decay.

If Pegula plays his cards right, I can see him only having to pay $75M of a $1B stadium:

(a)$600M (from various government -- Minny is cutting a cheque for $500M and Minny/St.Paul is no where as bad off as downtown Buffalo)

(b)$150M (from the NFL under its program)

(c) $250M Pegula share from:

(i) $125M from selling PSLs

(ii) $50M for a 25 year stadium naming deal ($2M a year)

(iii) $75M from his pocket

[Fletch]

Trump made a non-binding bid of $1B, but he is likely to see through Morgan Stanley's facade of a biding process and back out.

So Pegula being the only serious bidder could make a binding bid of $1B and walk away with the team. Even if he bids $1B, it is an open bid process so he could always bid more if necessary.

Why would Pegula bid against himself?

When it comes to a new stadium, I don't know what leverage Pegula has if he has no threat to relocate the team. That is why I see the Bills playing in the Ralph for decades to come.

Perhaps the various levels of government are dying to build a new stadium downtown among the urban decay.

If Pegula plays his cards right, I can see him only having to pay $75M of a $1B stadium:

(a)$600M (from various government -- Minny is cutting a cheque for $500M and Minny/St.Paul is no where as bad off as downtown Buffalo)

(b)$150M (from the NFL under its program)

(c) $350M Pegula share from:

(i) $125M from selling PSLs

(ii) $50M for a 25 year stadium naming deal ($2M a year)

(iii) $75M from his pocket

Your logic on JBJ is sound, but I don't get the logic in why Trump would withdraw. What do you mean by a facade of a bidding process?

If anything he gets bounced for not adhering to the NDA terms, at least that's what the rumors/reports are telling us.

Why would Pegula bid against himself? Good question. So if he's the only one left, why even offer $1B? Why not offer $1? OK, being somewhat smart, but seriously, why not offer $750M?

Something's going to give here. Rumors and reports are that the trust wasn't happy with only three bidders, one of which appears to be persona non grata amongst both trust and fans alike, reducing it to two serious bidders, or bidders that they need to take seriously.

As to $600M in government money, you serious? That's four times what the Yankees got. As much as we think of the Bills they are no Yankees, not even close. I think he'll be lucky to get $100M.

Unless Goodell was bluffing he said that the team would need a new stadium to stay in Buffalo. Do you think he was lying or bluffing? What would be his reason to bluff? I can't see one.

[SpikedLemonade]

Your logic on JBJ is sound, but I don't get the logic in why Trump would withdraw. What do you mean by a facade of a bidding process?

Well apparently Trump has made some comment that he was upset the Trust did not already accept his $1B all cash offer.

If you believe Trump was really only in this for some free publicity, I can see him backing out and blaming the Trust for mishandling the process. "I was disrespected blah blah blah..." Just a reason to not making a binding offer.

[AlbanyFan]

Your logic on JBJ is sound, but I don't get the logic in why Trump would withdraw. What do you mean by a facade of a bidding process?

If anything he gets bounced for not adhering to the NDA terms, at least that's what the rumors/reports are telling us.

Why would Pegula bid against himself? Good question. So if he's the only one left, why even offer $1B? Why not offer $1? OK, being somewhat smart, but seriously, why not offer $750M?

Something's going to give here. Rumors and reports are that the trust wasn't happy with only three bidders, one of which appears to be persona non grata amongst both trust and fans alike, reducing it to two serious bidders, or bidders that they need to take seriously.

As to $600M in government money, you serious? That's four times what the Yankees got. As much as we think of the Bills they are no Yankees, not even close. I think he'll be lucky to get $100M.

Unless Goodell was bluffing he said that the team would need a new stadium to stay in Buffalo. Do you think he was lying or bluffing? What would be his reason to bluff? I can't see one.

What can Goodell do? Say Pegula gets the team and wants to keep it in Buffalo. If he can't get funding and all the govt approval for a new stadium, what could Goodell possibly do? Take the team away? Force him to sell?

Is that actually what he said or was he just saying that it would help to keep the team there if they got a new stadium.

[SpikedLemonade]

What can Goodell do?

Nothing.

[coastal]

This practice bid stuff is funny.

[AlbanyFan]

Does this ever become like an auction? That is, say Pegula lowers his bid to $1M based on what you say, then they jive JBJ or Trump an opportunity to bid again nbd they put in $1.1B. Do they go back to Pegula and give him a chance to top it?

[SpikedLemonade]

This practice bid stuff is funny.

Morgan Stanley forgot where the team is located so they anticipated receiving over a dozen interested bidders.

The non-binding bidding stage of the process was where they were going to qualify interested purchasers, get them to bump up their bids and narrow the field.

It backfired when only one serious purchaser stepped forward.

[SpikedLemonade]

Does this ever become like an auction? That is, say Pegula lowers his bid to $1M based on what you say, then they jive JBJ or Trump an opportunity to bid again nbd they put in $1.1B. Do they go back to Pegula and give him a chance to top it?

It is an open process like an auction so yes they would go back to Pegula for another higher bid.

[Skooby]

Why not bid to blow everyone else out of the water & then lower it when you're the last person standing?

[YardRat]

I would guess that Pegula has the 'right' to drop his bid far enough to still be highest bidder at the next step, but if/when the auction part kicks in he'll probably be forced to go higher. Will that reach the reported $1.3bil that he initially allegedly threw into the ring? That probably depends on Golisano, and other parties that may be interested in jumping on board (which, I wouldn't expect many more if any because of the relocation restrictions.

How much the state puts into a new stadium, in all honesty, probably is dependent on how much infrastructure needs to be constructed. If, for example, the new stadium were to build on the existing OP site, the state contribution would probably be less than, say, downtown, because sufficient access is already there.

[Woodman]

TERRY!!!

[IlluminatusUIUC]

Why not bid to blow everyone else out of the water & then lower it when you're the last person standing?

I haven't read the bid packet but they might be prevented from doing so by the terms of whatever deal they agreed to. Alternatively, the trust may simply have the power to re-open bidding at that point and accept another offer.

[better days]

I expect JBL/Toronto will not see this through to a final bid. Even if they could bid Over $1.2B, the PR damage has been done such that the Trust is unlikely to accept their assurances that they intend to keep the team in Buffalo.

Trump made a non-binding bid of $1B, but he is likely to see through Morgan Stanley's facade of a biding process and back out.

So Pegula being the only serious bidder could make a binding bid of $1B and walk away with the team. Even if he bids $1B, it is an open bid process so he could always bid more if necessary.

Why would Pegula bid against himself?

When it comes to a new stadium, I don't know what leverage Pegula has if he has no threat to relocate the team. That is why I see the Bills playing in the Ralph for decades to come.

Perhaps the various levels of government are dying to build a new stadium downtown among the urban decay.

If Pegula plays his cards right, I can see him only having to pay $75M of a $1B stadium:

(a)$600M (from various government -- Minny is cutting a cheque for $500M and Minny/St.Paul is no where as bad off as downtown Buffalo)

(b)$150M (from the NFL under its program)

(c) $250M Pegula share from:

(i) $125M from selling PSLs

(ii) $50M for a 25 year stadium naming deal ($2M a year)

(iii) $75M from his pocket

Too funny to see Spiked grasp for that last straw of hope that the Bills move.

[SpikedLemonade]

I haven't read the bid packet but they might be prevented from doing so by the terms of whatever deal they agreed to. Alternatively, the trust may simply have the power to re-open bidding at that point and accept another offer.

Once the offers are binding they are binding.

Until then they are not.

[SpikedLemonade]

With the Forbes article confirming Tim Graham's report that Pegula did not bid $1.3B, I can see Pegula indeed buying the Bills for $1B or less.