After going years without an owner, the Arizona Coyotes are on the brink of getting their second one in just over a year.
The current owners, IceArizona, announced that Andrew Barroway has agreed to purchase a 51% stake in the team.
This possibility was brought to the public eye courtesy of a New York Post report, which was later confirmed by IceArizona. While doing so, current owners portrayed this as a positive develop and the result of “the successful first year of IceArizona’s ownership.”
Now that the deal is in place, CEO Anthony LeBlanc reiterated that point by asserting that “the addition of Andrew Barroway to our ownership group further solidifies the Coyotes long-term future in the Valley.”
Barroway isn’t new to the NHL. He previously attempted to buy the New York Islanders from Charles Wang and reportedly had interest in the New Jersey Devils before that.
“This is truly a dream come true for me and my family,” said Barroway. “I am extraordinarily grateful for the opportunity of a lifetime and look forward to working and solidifying a strong partnership with the Club’s current ownership group.”
NHL deputy commissioner Bill Daly previously stated that there are no plans to relocate the Coyotes. However, they still have an out-clause in their arena agreement should they lose at least $50 million over the first five years of the new lease.
This purchase still needs to be approved by the NHL’s Board of Governors.
Update: Here’s some information regarding the financial benefits of the sale:
Coyotes have received interest from potential investors over past year at higher valuations than what IceAz paid for club ($170M).
— Craig Morgan (@CraigSMorgan) October 10, 2014
The $305 million equity valuation of the team that the NY Post reported is accurate. Barroway is buying 51 percent based on that valuation.
— Craig Morgan (@CraigSMorgan) October 10, 2014
The infusion of capital will allow IceArizona to wipe out its loan from Fortress Investment Group ($85 million is accurate figure).
— Craig Morgan (@CraigSMorgan) October 10, 2014
US ownership allows access to NHL credit line (about $100M) at much lower interest rate than Fortress. Could mean $9M a year more in $ flow.
— Craig Morgan (@CraigSMorgan) October 10, 2014