BUFFALO, N.Y. — If you’re into speculating, there are probably 100 different ways you could go about Terry Pegula dissolving Pegula Sports and Entertainment and making the Buffalo Bills and Buffalo Sabres separate entities.
PSE was established by former president Kim Pegula and included the teams along with bars, restaurants, and other things. The theme ‘One Buffalo’ came about to bring Buffalo together, but in the end, the Bills made money, and much of the rest floundered. The one happy family thing eventually went south with layoffs, firings, and employees wanting other opportunities. Another thing that didn’t help is there were people in key positions who had absolutely no experience in doing the jobs they were asked to do.
COO John Roth has a strong financial background and he couldn’t have been impressed with what he saw.
Many are making the leap that separating the Bills and the Sabres, makes it easier to sell one of them. Ron Ruccia is no longer with PSE but he is on record more than once vehemently denying that the Sabres are for sale. Also in the past year, I’ve been told by other high-placed sources that the team wasn’t for sale. Roth told ‘The Athletic’ and I have confirmed from the team that Terry Pegula is “extremely excited about the Sabres.” He went on to say, “He loves this team.” Roth also said that Pegula is spending his own money on the roster and the arena. Roth added, “I think you can tell by his actions how highly supportive he is of the organization.”
In a statement from the teams, Pegula said, “It is a great time to be a Buffalo sports fan and we have a tremendous amount of confidence that this restructuring will allow our businesses to continue to elevate with our teams." This does not say sale to me.
Selling wouldn’t make sense because Roth was just quoted in the Buffalo News as saying that many improvements are coming to the arena. He also said it wouldn’t all be done at once because Pegula is on the hook for any arena improvements. This is where I think dissolving PSE comes in.
The release did not say anything about employees losing their jobs, but I have been told that less than a dozen employees have been let go. Pegula will save some money, but it isn't significant. By restructuring, you won't have the same person doing the same job twice which is more economical and will help save in the end.
Another thing that could be happening is if Pegula wants to approach New York State for money to do these improvements. By separating the Bills and the Sabres, there can’t be any overlapping when it comes to financing from the state.
Pegula may also be looking to save money wherever he can because of the overages already being incurred to build the new stadium. It is adding up quickly. Again, that is speculation on my part.
It’s a shame that PSE didn’t work out as planned. Now it's Roth's turn to see what his vision for the future will be.