Tax warrants, affiliations and a vicious cycle
A few Amerks thoughts and meanderings:
• The news of Pitney Bowes' $31,074 lawsuit against the team is no surprise, of course. And, let's face it, $31,000 is most likely a drop in the bucket compared to the Amerks' overall debt.
However, I don't think the team can pay off private creditors like Pitney Bowes until it pays up with the government. I refer you to a post I wrote waaaay back in November, reporting that the state Department of Taxation and Finance had issued a warrant against the Amerks for more than $18,300 in unpaid sales taxes and fines. For some reason, the D&C hasn't reported on it at all.
• Just out of curiosity, over the weekend I e-mailed asked Amerks media-relations director Craig Rybczynski (Donner, it seems, won't talk to me, but that's OK) about the official status of the team's affiliations. I specifically asked if the Sabres have officially and legally cut ties with Rochester, and whether the Panthers have officially and legally committed to Rochester. Craig answered that there's no update at this point.
I've learned not to assume anything until the ink dries, the i's are dotted and the t's crossed. At least in my mind, the Amerks' affiliations remain up in the air. A lot can happen behind the scenes and behind closed doors. That doesn't mean anything WILL happen that way in this case, but I prefer to be absolutely sure.
• There's been a fair amount of public rumination and hand-wringing about whether the Amerks' disastrous financial and legal state has led to this season's abyssmal attendance. However, we have to consider that such influence flows in both directions.
We need to be asking whether the lousy attendance will further cripple the team's finances. Less people through the gates means less revenue, which means even LESS money to pay off the team's myriad debts. More financial problems lead to even greater fan cynicism, even lower attendance and less revenue. It's one of them self-perpetuating cycle type things.
• The news of Pitney Bowes' $31,074 lawsuit against the team is no surprise, of course. And, let's face it, $31,000 is most likely a drop in the bucket compared to the Amerks' overall debt.
However, I don't think the team can pay off private creditors like Pitney Bowes until it pays up with the government. I refer you to a post I wrote waaaay back in November, reporting that the state Department of Taxation and Finance had issued a warrant against the Amerks for more than $18,300 in unpaid sales taxes and fines. For some reason, the D&C hasn't reported on it at all.
• Just out of curiosity, over the weekend I e-mailed asked Amerks media-relations director Craig Rybczynski (Donner, it seems, won't talk to me, but that's OK) about the official status of the team's affiliations. I specifically asked if the Sabres have officially and legally cut ties with Rochester, and whether the Panthers have officially and legally committed to Rochester. Craig answered that there's no update at this point.
I've learned not to assume anything until the ink dries, the i's are dotted and the t's crossed. At least in my mind, the Amerks' affiliations remain up in the air. A lot can happen behind the scenes and behind closed doors. That doesn't mean anything WILL happen that way in this case, but I prefer to be absolutely sure.
• There's been a fair amount of public rumination and hand-wringing about whether the Amerks' disastrous financial and legal state has led to this season's abyssmal attendance. However, we have to consider that such influence flows in both directions.
We need to be asking whether the lousy attendance will further cripple the team's finances. Less people through the gates means less revenue, which means even LESS money to pay off the team's myriad debts. More financial problems lead to even greater fan cynicism, even lower attendance and less revenue. It's one of them self-perpetuating cycle type things.
posted by Ryan Whirty at
8:29 PM
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