06-04-2002, 01:44 PM
It's similar to Enron. Basically the Rigas family made large amounts of personal loans and limited partnerships (spin off companies that give the company say $500K for $500K worth of stock). When the stock prices went down, all of this outstanding debt is generated which drives the stock down further. Investigations pursue and the Rigas family sold logging rights to a parcel of land they own to Adelphia for $1M. Adelphia is the 6th largest cable company, not a paper mill.
The stock is now worth less than $1. Adelphia was the key contact for the major advertisements on the boards at HBSC (Comedy Central for example). With Adelphia going bankrupt, the Sabres lose major revenue. Also their owners, the Rigas family has even less money. What this all boils down to is that the Sabres may go bankrupt. Buffalo is not a major commercial center. There is not a major company that would love to buy the team to be their crown jewel. The Sabres can either but together a team of AHLers and pray that the people of Buffalo will buy season tickets or the team might end up with Paul Allen (Microsoft) or just fold altogether. Thank you Gary Buttman and the NHLPA.
The stock is now worth less than $1. Adelphia was the key contact for the major advertisements on the boards at HBSC (Comedy Central for example). With Adelphia going bankrupt, the Sabres lose major revenue. Also their owners, the Rigas family has even less money. What this all boils down to is that the Sabres may go bankrupt. Buffalo is not a major commercial center. There is not a major company that would love to buy the team to be their crown jewel. The Sabres can either but together a team of AHLers and pray that the people of Buffalo will buy season tickets or the team might end up with Paul Allen (Microsoft) or just fold altogether. Thank you Gary Buttman and the NHLPA.