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July 30, 2010
Coyotes buyers might be broke after all
When we last left the saga of the Phoenix Coyotes last month, on-again off-again suitors Ice Edge Holdings had just delivered proof that they had the cash to purchase the team. So, what are the latest developments?
The group of Canadian and American investors was required to show Glendale proof of its financing last month in order to negotiate exclusively with the city and work on a detailed lease for the Coyotes to play at city-owned Jobing.com Arena.
At the deadline, Glendale said Ice Edge had submitted "some of the required financial information." City officials declined public records requests for more detail.
But on Monday, city spokeswoman Julie Frisoni revealed that Ice Edge has failed to submit some of the required documents, five weeks past the deadline.
Dear lord, this may never end.
For now, at least, Jerry Reinsdorf hasn't re-entered the bidding, but given the number of times he and Ice Edge have each jumped into and out of the Coyotes sale process over the last year and change, you should never rule anything out. Meanwhile, Winnipeg hockey fans are trying to decide how excited to get about the prospect that no viable Arizona buyer will be found, and the NHL will relocate the team back to its original hometown, as it threatened earlier this year.
Given the levels of public subsidies that would be required to keep the team in Glendale, that might ultimately be best for all concerned — except for the remaining Coyotes fans, obviously, especially those who don't pay Glendale taxes.
Now, it's just a question.... but has anyone considered the possibility that these clowns aren't actually interested in buying an NHL team, but have found that publicly (very publicly) noodling with the idea is a cheaper way to get publicity for their "investment" firm than actually paying for advertising?
Just wondering...
I would not classify these guys as "broke", but they are clearly nothing but ham'n'eggers looking to "buy" a distressed asset for no money down. How 'undervalued' can this business be if it requires an annual subsidy equal to about 50% of it's total operating cost?
Do you suppose the City of Glendale paying for their flights back and forth from NY? Or is it all being done using air miles?
Well, I have to say that unless Reinsdorf saves the City of Glendale from one of the worst investments in their government, then the Coyotes are gone and I don't think it means just to Winnipeg. Don't you think investors out of Kansas City, Las Vegas, Portland & Houston wouldn't come out and try to get the team? Wouldn't the NHL be interested in relocating to a new city in the United States with their next TV contract coming up? I'm just saying... Winnipeg seems like hitting the panic button too quickly.
Posted by No NHL in Phoenix in 2011-12 on August 1, 2010 04:11 AM
No NHL:
Good points. While the NHL probably does want to keep the club in Phx, or at least in the US, they don't seem to have anyone who wishes to own the franchise (be it local or otherwise).
KC has an arena, but no prospective ownership (the previous favourite for this plum assignment is, like so many other prospective NHL owners, serving jail time for fraud). Houston? Maybe. But no-one has expressed interest in owning a club there in more than a decade (Les Alexander).
Las Vegas? No arena. Portland? Seattle?
Again, they might be decent markets, but unless someone is willing to own an NHL club in them, it won't happen.
Finally, if there is a deep well of potential NHL owners (not currently indicted for fraud), they have at least 5 or 6 clubs to pick from that are for sale in their present markets, and better financial bets. If it were me, I'd rather take a look at the Dallas Stars than try and fix/relocate the disaster in Phx.
Just sayin'....
Besides the city of Glendales and its taxpayers, the Coyotes's creditors remain the big losers in this debacle. Too bad bankruptcy judge Redfield T. Baum does not have to take responsibility for his brain dead decision.
Posted by bevo on August 1, 2010 12:33 PM
Besides the city of Glendales and its taxpayers, the Coyotes's creditors remain the big losers in this debacle. Too bad bankruptcy judge Redfield T. Baum does not have to take responsibility for his brain dead decision.
Posted by bevo on August 1, 2010 12:35 PM
Bevo:
Everyone wants to tee off on Judge Baum. Just a question, though, what would you have had him do?
He had limited options, the highest bid was not a clean one, and could (likely would) have resulted in years of litigation before creditors saw a dime. In the end, while his solution was imperfect, it did at least extract $140M from the NHL (arguably the entity most responsible for this debacle) for the creditors.
Sometimes, life is about making the best of a bad situation - even (in fact, often) for judges!
Posted by John Bladen on August 2, 2010 09:57 AM