Coyotes buyers prove they’re not broke

Well, that’s one hurdle cleared: Ice Edge Holdings, the prospective buyers of the league-controlled Phoenix Coyotes, met Friday’s deadline to provide proof that they actually have the cash to pull off the purchase. Which may not sound like a huge accomplishment, but given that the company’s own CEO said earlier this month he wasn’t sure they’d pull it off, it’s at least a step forward.

(And, of course, given some of the previous characters who’ve been approved to buy NHL teams, “not being flat broke” might not actually be that high a bar to set.)

Now all Ice Edge needs is to negotiate a final lease agreement with the city of Glendale, and a purchase agreement with the NHL, and they can happily become the owners of their own bankrupt hockey franchise. Hint to Glendale city negotiators: Try not to give up your right to sue the team if they violate their lease.

One comment on “Coyotes buyers prove they’re not broke

  1. Neil, I stopped following this story when the CoG dug deep (into the pockets of others) and agreed to cover operating losses for 2010/11. For me, that was pretty much the end of the line, as there is now no reason for any prospective buyer not to demand they continue to fund (increasing) operating losses indefinitely.

    That said, it was my understanding that what IEH has actually done is provide a agreed term sheet (which is not the same as ‘having’ financing) to the city. It’s also my understanding that IEH has said they “met” the condition, but that the city has not yet reviewed the information the company provided. It is certainly possible (in fact perhaps even likely) that they will get financing given that the city is prepared to pour yet more untold millions into the 14 year economic calamity that is hockey in the desert, but as I understand it, it is not “done” as yet.

    One final note… the Coyotes generate under $20M annually in gate receipts… and the city has committed $25M to cover one year’s losses. This means, of course, that Glendale residents (pop 250k give or take) who do not attend hockey games are actually paying more for that privilege than fans who do.

    I’m just sayin….