Blues Allegedly Reject $167 Million Offer

According to an article from the St. Louis Post-Dispatch, the St. Louis Blues rejected an offer of $167 million from a potential buyer on July 2nd. The offer, made by Max Chambers of Calgary, said the organization rejected his all-cash offer and made it clear they were seeking $190 million.

The paper also reports the Blues received two other offers, both of which were rejected.

Chambers, the man behind the $167 million in cash, goes on to state that he believes the current group has lofty expectations considering the franchise was valued by Forbes in 2010 to be worth $165 million. He believes he made an aggressive offer and was met with an over-aggressive counter.

Interesting.

First off, with less than three weeks until the team’s first regular season game, it seems unlikely the sale of the club will be completed. Yes, that means that once again Dave Checketts made a claim only to let it fall by the wayside – a reoccurring theme this summer.

Next, our attention must shift to the current owners. I personally believed the current group was seeking something in the neighborhood of $200 million, or at the very least, were setting that as the bar and would come down as different offers flowed in. I however was not expecting the team to keep their expectations so high, as recently reported, after several offers came in well below target.

Obviously, in business, the current owners are trying to get the most out of their asset – no one can blame them there. We can blame them on perhaps having bloated expectations (and egos) that have yet to deflate even after offers from various groups have repeatedly indicated the market value is lower than what they are searching for.

This isn’t to say the Blues aren’t worth $190 million but what it does indicate is that in the current market no one is willing to pay that sum – yet. In a few years, maybe, but for Forbes to assign a value around $165 million and then to expect a substantial amount higher just a year later doesn’t make much sense.

Eventually, this team will be sold. It’s just a matter of time and a matter of two sides reaching an agreement on a yet to be determined number. It is disappointing that perhaps the most competitive offer on the table was met with such an aggressive counter-offer. This sort of action makes it seem like this process will only become that much more drawn out and could wear on long into the season.