The Malik Report
by George Malik on 08/20/13 at 12:21 PM ET
Update: Wrong blog. Oh well.
Ouch. Forbes Michael Ozanian reports that the Minnesota Wild's minority owner ran afoul of the Securities and Exchanges Commission, and as such, he got dinged with a fine larger than Ryan Suter's signing bonus:
Billionaire Philip Falcone will not have to go to the penalty box, but he and his hedge fund, Harbinger Capital Partners, will pay $18 million to settle SEC charges over Falcone’s use of firm money and other accusations, regulators said Monday.
SEC: “Falcone and Harbinger engaged in serious misconduct that harmed investors, and their admissions leave no doubt that they violated the federal securities laws,” said Andrew Ceresney, co-director of the SEC’s enforcement division. “Falcone must now pay a heavy price for his misconduct by surrendering millions of dollars and being barred from the hedge fund industry.”
Last year I wrote that the SEC’s investigation of Falcone and his hedge fund could become problematic for the Wild because the team is losing money and needs cash. Last month the Pioneer Press reported the Wild lost $30 million during their abbreviated 2012-13 season, and a cash call was made to team investors in February.
The Wild have only made the Stanley Cup playoffs once in the past five years, losing to the Chicago Blackhawks in the first round last season. Although the the Xcel Energy Center is considered by many to be the best arena in the NHL, like the money-losing New Jersey Devils the Wild suffer economically from not sharing the building with an NBA team. Also, the Wild must compete with the Target Center, home of the NBA’s Timberwolves, for concerts and other non-team events.
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The Malik Report is a destination for all things Red Wings-related. I offer biased, perhaps unprofessional-at-times and verbose coverage of my favorite team, their prospects and developmental affiliates. I've joined the Kukla's Korner family with five years of blogging under my belt, and I hope you'll find almost everything you need to follow your Red Wings at a place where all opinions are created equal and we're all friends, talking about hockey and the team we love to follow.