Report: Barroway working on deal to become Coyotes’ majority owner

5 Comments

Andrew Barroway is reportedly back in the NHL ownership mix.

According to the New York Post, Barroway — spurned from purchasing an ownership stake in the Isles earlier this year — is working on a deal to purchase 51 percent of the Arizona Coyotes.

More, from the Post:

IceArizona — under the Renaissance Sports and Entertainment umbrella — has owned the Coyotes for one season after purchasing the franchise last year from the NHL, which had owned and operated the franchise since it plunged into bankruptcy in 2009. The group would maintain a 49 percent interest in the franchise under this purchase agreement with Barroway.

RSE, which feted itself in an on-ice ceremony at last season’s opener, agreed to buy the franchise after striking a deal on a lease for the arena in Glendale that contains an out-clause after five years (following 2017-18) if losses total $50 million during that term. The Post has been told that the franchise is claiming losses of $24 million for last season alone.

A separate source told The Post the NHL has been seeking investors for the franchise over at least the last few weeks.

A Post source also claimed that Barroway would drop his $10 million lawsuit against Charles Wang — which alleges the Isles’ owner reneged on a deal to sell him the team — if the Coyotes purchase went through. Wang eventually sold the team to a group spearheaded by Jonathan Ledecky, a former member of the Capitals’ ownership group.

Barroway, a Philadelphia-based hedge fund manager, has long been interested in owning a NHL franchise. Prior to the Isles situation, he was reportedly interested in buying the New Jersey Devils. It’s also worth noting that Barroway appears to be in relative good standing with the league — a Forbes report from ’13 claimed he lent the Devils $30-million to help the team make its payroll, escrow and pension payments.

Update:

Related: Coyotes ‘out clause’ means more uncertainty in the desert