It’s never not interesting off the ice for the Phoenix Coyotes.
Mike Sunnucks of the Phoenix Business Journal reports that some financing for the deal to sell the team to Renaissance Sports and Entertainment (aka: Ice Arizona) has fallen through.
Sunnucks cites two sources close to the situation who say funding has either not been finalized or has been dropped completely from the deal. The group has until August 5 to finalize the purchase.
One member of Ice Arizona is hedgefund investor Daryl Jones and he responded to Sunnucks’ story on Twitter to set the story straight in his own way.
Craig Morgan of Fox Sports Arizona backs up what Jones said reporting that the deal is still on track to be completed by Monday’s deadline. It was reported over the weekend that the NHL Board of Governors would approve the sale this week although that’s yet to happen.
There are just a couple of hurdles left to clear in the sale of the Phoenix Coyotes, but a big one may be out of the way this week.
Craig Morgan of Fox Sports Arizona reports NHL Deputy Commissioner will seek approval of the Board of Governors this week for the sale of the team.
As you know, the deal to sell the team to Renaissance Sports and Entertainment was approved by the Glendale City Council and now it’s just a matter of the final paperwork and procedure being completed. Getting approval of the Board of Governors is a big one as far as the league is concerned.
As for the completion of the sale, Daly says they’re still moving forward with that. There are only baby steps left in ending this saga.
The NHL Board of Governors meeting wrapped this afternoon with nothing coming from it concerning the state of the Phoenix Coyotes.
NHL Commissioner Gary Bettman spoke with reporters following the meeting and spelled things out rather clearly.
“No board action is required at this point,” Bettman said. “We’re anticipating, or hoping, the Glendale City Council passes the deal with the Renaissance Group. If the council doesn’t approve it… I don’t think the Coyotes will be playing there anymore.”
Bettman set the target date for July 2 for a decision, the same day the City of Glendale is set to vote on their latest proposal.
That proposal is the whopper of one the city presented this afternoon that sees the Renaissance Sports and Entertainment group get $15 million a year from the city to run Jobing.com Arena and a five-year out-clause to leave the city if the losses amount to $50 million or more in that time.
If things fall apart with Glendale, is there time to move the team elsewhere? Bettman is confident there is.
To add to this, NHL Deputy Commissioner Bill Daly says the league has no issues with Key Arena in Seattle if the Coyotes are to move there.
This is it though. The Coyotes saga is going to end one way or another next week.
The City of Glendale posted the details of their offer to Renaissance Sports and Entertainment (RSE) to help keep the Phoenix Coyotes at Jobing.com Arena. As you might expect from this ordeal, the details are dizzying.
The agreement has the Coyotes staying at Jobing.com Arena for the next 15 years as the arena’s anchor tenant with Glendale paying RSE $15 million a year to run the arena. There’s a catch to all this, however.
According to Mike Sunnucks of the Phoenix Business Journal, RSE has a five-year out-clause to move the team if they pile up $50 million (or more) in losses over that time frame. The City of Glendale has a lot of “unresolved serious concerns” with the deal. Those are:
- The city bears all the risk if the revenue projected by Renaissance is not realized.
- The deal requires a $15 million management fee to Renaissance. The city has budgeted $6 million to pay for part of the $15 million arena management fee and Renaissance has projected shared revenue streams to help bridge the gap. Should those projections not be realized, and the city does not receive the projected revenues, then the city would need to make up that loss.
- The proposed agreement is for 15 years and does not allow for the city to terminate the deal if revenue projections are not met as long as the Coyotes play in the arena.
- The proposed contract can be terminated by Renaissance if their cumulative losses reach $50 million, and, in any event, after five years.
The plan is to have the proposal voted on on July 2. Should this deal not pass, the NHL could seek to move the team to Seattle immediately. Next Tuesday will be decision day one way or the other.
CBC’s Hot Stove panel dropped a few bombs last night but one the biggest may concern the future of the Phoenix Coyotes.
Elliotte Friedman of CBC reported the Vancouver Canucks wanted to move their AHL farm team to Seattle and Key Areana but were rebuffed by the NHL because the city was not available to them. Instead, they announced the team’s move to Utica, NY.
Why wasn’t Seattle available?
Glenn Healy reports that should Renaissance Sports & Entertainment unable to close a deal with the City of Glendale by July 2, the Coyotes would be sold Ray Bartoszek and Anthony Lanza for $220 million and they would move the team to Seattle. If that group winds up purchasing the team, Jeremy Roenick will also be part of hockey operations.
Bartoszek and Lanza are no strangers to ownership rumors as two years ago they were close to buying part of the New York Mets.
As we know with the Coyotes situation, nothing is ever final until it’s signed off on, but it’s clear the league’s endgame with the franchise is coming, the only question left will be if it’s in Glendale or Seattle.