Phil Falcone Faced With Serious Dilemma: Hockey Or Hooters?

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Gang, something serious happened. One of our favorite hedge fund managers is in trouble and needs help. Phil Falcone has been put in a horrible position, that I hope no one else ever finds him/herself. It's a pretty well-known fact that the Harbinger founder is a huge hockey fan. The Minnesotan grew up skating, played as an undergrad at Harvard and pro in Europe for a year before being sidelined with a leg injury. He's owned a forty percent stake in the Minnesota Wild for some time and recently acquired the Dubuque Fighting Saints. Falcone's love of ice never posed an issue on the work at his hedge fund-- until now. And it's bad. Here's the rub:

Falcone apparently wants to be the owner of the new Hooters Casino Hotel in Vegas (according to the Post, he bought the casino's $130 million senior loan, which puts him in a nice position when the place seeks bankruptcy protection). Fine, right? Wrong! The NHL doesn't allow owners to operate places with sports books, which HCH does.

People close to Falcone say he's seeking a solution that will allow him to own both entities by dropping Hooters' sports book. He's also talking to other investment houses about dumping his position in case he can't keep the casino, sources said.

He's probably also soliciting the opinions of colleagues, neighbors friends and strangers re: how the hell do you make a decision like this? How does one choose between your favorite sport and gigantic breasts? Even if you've never been in exactly the same situation as Phil, surely you can relate on some level. Help a brother out.

Hooter Shooter [NYP via BI]

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Who Wants To Invest In Phil Falcone's New Company?

Harbinger Global Corp is coming to an exchange near you. Phil Falcone, the embattled billionaire hedge fund manager, has put together an unorthodox IPO that will see his hedge fund firm contribute assets valued at $350 million to a blank check company that will trade publicly. In the deal, a special purpose acquisition company that is expected to trade on Nasdaq and be known as Harbinger Global Corp., will acquire a majority interest in an MGM-branded hotel and casino development in Vietnam and a minority interest in an iron ore producer working in Brazil. Funds run by Falcone’s Harbinger Capital Management that are contributing the assets will get an ownership stake that could be as high as 96% in Harbinger Global and Falcone is slated to become executive chairman of the company. Falcone’s move to become closely involved in a publicly-traded company is audacious given that he is currently facing securities fraud charges from the Securities & Exchange Commission. Yeah, well, people also thought it was audacious for him to invite a burlesque dancing pig he barely knew to come and live with him and she turned out to be the best thing that ever happened to him, so.