Hicks Sports Group update

Tom Hicks was overseas when it was announced that HSG will use Galatioto Sports Partners to seek a potential new owner for the Stars, so he had the media into his office this afternoon to comment on the situation.

He said he has personally lent $85 million to Hicks Sports Group over a two-year span that ended March 31, 2009 (when HSG defaulted on $525 million in loans to 40 lenders).

He said the model for spending in the NHL is broken and that the economy simply will not carry a $56 million payroll for teams in the south (the NHL salary cap is $56.8 million) and that he fully expects Sunbelt teams to follow suit. This season, Carolina, Anaheim, Florida and San Jose all have cap hits above $55 million. The Stars' cap hit is $49.9 million (including bonuses, some of which will not get paid).

Stars president Jeff Cogen also was in the meeting and said the Stars are spending more on payroll than revenue should allow, and that Hicks is swallowing the losses for the team. He said he plans to announce soon that the highest=priced tickets at American Airlines Center will be reduced for next season in hopes of getting more people in the arena.

Hicks emphasized that he as an individual is separate from Hicks Sports Group, and that he does not have financial problems. He said the process of selling the team is just getting started.

``We were hopeful to be quietly doing this,'' he said. ``I don't know what direction it's going to go. I don't know if I'm going to be involved (as part of the future ownership group), I don't know if my children will be involved. We're going see what happens and our advisors will start looking at all of the options. Hockey has a smaller universe of interested investors certainly than baseball has, so our advisors will be trying to find the most interest they can find.''

Comments

[tony magennis]

hello mr hicks as im writeing this im gazeing at a man who put his life into my football club bill shankley is the name my point is the dogs on the street know you are struggling with your sports company,s and as an irish liverpool supporter i would plead with you and your partner mr gilette to keep the proud traditions of our club intact as we are almost a laughing stock in world football at present i begg you to sell up to someone who can bring us forward in world and european football as bill shankly did and bob paisley with passion please do the honourable thing and listen to the supporters passionable lfc irish supporter