Karmanos: Local investors understand Canes' value
Posted October 14, 2011
Raleigh, N.C. — Carolina Hurricanes owner Peter Karmanos Jr. said his search for local investment partners for his team has been a success so far because leaders in the Triangle understand the value of the team.
Since the death of his business partner, Tom Thewes, in 2008, Karmanos has been looking for ways to fill that role.
On Thursday, the team announced that Michael Kahn, the owner of the Charlotte Checkers of the American Hockey League, had made a $5 million investment and would join the Canes ownership group.
Karmanos said his unique relationship with Kahn, whose Charlotte team is the minor-league affiliate of the Hurricanes, and Kahn's business connections in the Triangle made it easy for them to work more closely together. He called Kahn "a Raleigh guy and a good hockey guy."
Karmanos did not identify any of the other local investors, but he said Friday that the team has secured $22 million in commitments. Those same people will probably kick in another $7.5 million.
He expects another group to add $2 million in the next six months and has "solid interest investments" of another $5 million over the next year, for a total of $36.5 million.
Karmanos said Friday that he is looking for about $10 million more.
He joked about the guest he had in his owners' box last week. "I'm trying to convince (singer) Kid Rock, but he's got strong Detroit ties," he said.
The bottom line is that Karmanos expects to meet the team's financial needs with investments from within the local community.
"The Canes can stand on their own," he said, "and having a facility like the RBC Center is extremely attractive to investors."