Coyotes owners selling already, to rejected Islanders bidder: Report
The nightmare allegedly ended for the Arizona Coyotes and their fans last August, when the NHL approved the sale of the franchise to Ice Arizona.
No more court cases! Stable ownership! Let the gilded age begin!
Annnnd they’re already selling.
But there might be a silver lining.
Larry Brooks of the NY Post reports that the Coyotes are in “advanced negotiations” with Andrew Barroway, a hedge fund manager who attempted to buy the New Jersey Devils in 2012 and then was rejected by Charles Wang as a bidder for the New York Islanders this year.
How advanced? The sale is expected to be completed by month’s end.
That this news leaks after a Board of Governors meeting in New York could mean it was discussed formally by the NHL with its owners. Brooks reports that the NHL “has been seeking investors for the Coyotes over at least the last few weeks.”
Ice Arizona would retain a 49-percent ownership stake in the team. From the Post:
Sources further report Barroway, a Philadelphia-based hedge fund manager, is buying 51 percent based on a recent $305 million valuation of the franchise, which was purchased by RSE for a reported $170 million. The NHL had paid $140 million to get the team out of bankruptcy.
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Perhaps the most intriguing aspect of this story: Barroway would drop his $10 million lawsuit against Islanders owner Charles Wang in exchange for the right to buy the Coyotes. He sued Wang after claiming the Islanders owner backed out of a handhake deal to buy the team, alleging that Wang decided against the deal after the Los Angeles Clippers sold for $2 billion.
Legal wrangling with Barroway and Wang, a friend and backer of NHL commissioner Gary Bettman, had already started.
Now not only might the lawsuit disappear, but the Coyotes would have even surer footing in their ownership.
Gary is made of magic ...
Of course, there’s that pesky out clause after five years if the team loses $50 million in that span, which it totally will.
Deep breaths, Coyotes fans.
UPDATE: The Coyotes released a statement Thursday night confirming that IceArizona has been speaking with a potential investor:
“In response to media reports today, the Arizona Coyotes can confirm that IceArizona has been in discussions with an unsolicited potential investor who is interested in joining the partnership. This should be viewed as an incredibly positive development and is due to the successful first year of IceArizona’s ownership. This is all about the long-term stability and viability of the franchise in Arizona. By no means are any members of the current IceArizona group departing the ownership. While there has been no confirmation of any transaction, this is something that the current ownership group is exploring.”
