Sale of Coyotes to NHL closes

  • Print

PHOENIX (AP)—Final papers have been signed closing the sale of the bankrupt Phoenix Coyotes to the NHL.

Notification of the closure was filed Tuesday in U.S. Bankruptcy Court.

Attorneys signed final papers on Monday and $13.3 million was transferred into an account that will hold the money until dispersal is determined.

In all, the NHL paid about $140 million for the team.

The $13.3 million is what is remaining, primarily for owner Jerry Moyes and ex-coach Wayne Gretzky. The figure is expected to drop when additional attorney fees and other administrative costs are determined.

The NHL plans to resell the team, preferably to an owner that would keep the franchise in Glendale, Ariz.

Updated Nov 3, 3:14 pm EST
digg del.icio.us
more

1988 Comments

Post a Comment
  1. ismaeal n
    1988. Posted by ismaeal n Wed Nov 4 11:04am EST

    Report Abuse

    HELLLLLLO VEGAS, because that's what Buttman wants to do
  2. Joe D
    1987. Posted by Joe D Wed Nov 4 4:36am EST

    Report Abuse

    Excuses for Arizona Hockey are quickly going to pot. They have a decent team thats
    doing well on the ice and dismally in the stands.
    Of course someone is willing to lose 30million per year on this dog, the NHL.
    Buyers are just breaking down the doors.
    Great work Gary your da man. Pinhead.
  3. Brian
    1986. Posted by Brian Wed Nov 4 2:13am EST

    Report Abuse

    Most of the reasons why the teams left Winnipeg and Quebec remain ... small arenas lacking the number of suites and amenities the league looks for, small populations, limited corporate base. The only issue that has been remedied is the exchange rate which is hovering near record highs and is probably unsustainable at this level. For either city to realistically get another NHL franchise is going to require substantial arena renovations or a new barn and for the Loonie to remain strong compared to the USD. 15000 seats isn't going to get it done and depending on the exchange rate to remain where it is would be a pipe dream.
  4. <i>jdsteacher</i>
    1985. Posted by jdsteacher Wed Nov 4 2:01am EST

    Report Abuse

    Portland, OR: An NHL TEAM WOULD have amazing fan support. and the west coats needs a team geographically between the sharks and CANADA.
  5. Mike T
    1984. Posted by Mike T Wed Nov 4 1:50am EST

    Report Abuse

    Jared

    Actually that might not be a bad idea. 'Phoenix is desperate for money and has a top of the standings team at the moment. Toronto has lots of money and is in last place. What if Toronto were to pay say $100 million to Phoenix to do an entire swap of the teams? In theory it could work.

    Then again.... MLSE parting with money is like Russia parting with its nuclear weapons.... not going to happen.
  6. ml
    1983. Posted by ml Wed Nov 4 12:29am EST

    Report Abuse

    Move them back to Winnipeg.
  7. Jared G
    1982. Posted by Jared G Tue Nov 3 11:27pm EST

    Report Abuse

    Maybe they can relocate the Maple Leafs to Phoenix...
  8. Brian
    1981. Posted by Brian Tue Nov 3 11:24pm EST

    Report Abuse

    The league had a choice between buying the team and trying to sell it or forfeit their rights as a franchiser. Given those choices, buying the team makes sense. They were forced to protect the constitution and by-laws by how Moyes and Balsille tried to make an end run.

    Low attendance is to be expected with no advertising budget, marketing plan, a media bias making it seem that the team was already gone no matter what, and a team not issuing many comps. The 6000 range is low even with those considerations, but, expecting them to sell out is unrealistic. This is a team that didn't have a TV contract until about halfway through pre-season. Now that there is an owner it will be interesting to see how things pan out in the next couple of weeks on the attendance front.

    Without seeing the lease I'm not sure if the league could avoid the lease termination penalties by simply folding the franchise and immediately expanding elsewhere. Even Chapter 7 doesn't exempt all debts and obligations and the last thing the league needs is another court drama.

    At this point most of the key decisions rest with Glendale. They have to be willing to deal if they want to keep an anchor tenant in the building. Moyes agreed to a terrible lease which is going to make finding a buyer to stay in place difficult. There have been a few reports of negotiations proceeding well with Ice Edge and the Argonauts' owners are showing some interest.

    In the mean time .. the Yotes are doing well on the ice and Balsille failed in his attempt to end run the very documents that give the league its structure.
  9. Igor
    1980. Posted by Igor Tue Nov 3 11:21pm EST

    Report Abuse

    Freaking Bettman got a team! Hail Bettman and his morons!
  10. <i>ru_stoned2</i>
    1979. Posted by ru_stoned2 Tue Nov 3 10:59pm EST

    Report Abuse

    kc getting the new team? who is this chump? thank god you dont run the league, oh wait the nhl has listed kc as a potential city, you might as well be commisioner. las vegas next?
  11. <i>poezstuff</i>
    1978. Posted by poezstuff Tue Nov 3 10:59pm EST

    Report Abuse

    Screw everyone!!! We love our Coyotes here. AAAWWWOOOOOOOOOOOOOO!!!!!! I'll give blood n fight visitor fans at every game. Westside.
  12. Paul
    1977. Posted by Paul Tue Nov 3 8:51pm EST

    Report Abuse

    why should you get paid when you suck, unless thats what they are getting paid for. Bettman you dirty dog you
  13. Mike T
    1976. Posted by Mike T Tue Nov 3 7:12pm EST

    Report Abuse

    Dorkie

    I don't hate the Coyotes. I'm on the record several times feeling sorry for the fans and the organization. However, I'm also very critical of the fans (5000?) and looking at the reality of the situation that no one should be stupid enough to buy a team in this state.

    Are you referring to the current sell out streak? That depends. Richard Peddie (CEO of MLSE) says that the Leafs have never not sold out in his lifetime, which would be about what 60 years? Official NHL numbers seem to say otherwise for 5 games at the Air Canada Centre however MLSE is claiming that it was a problem with the software. Either way the longest all time streak belongs to the Leafs.
  14. <i>cwoods7797</i>
    1975. Posted by cwoods7797 Tue Nov 3 7:09pm EST

    Report Abuse

    NHL is realy stupid. hockey is not working out in arizona there costing more money problems staying in arizona, nobody is even buying tickets give the team to a market that would be able to support a team i dont know why the NHL cant sell the team to Jim Basille he offered a realy fair amount Garry Bettman you are a @#$% and your stupid too
  15. DF D
    1974. Posted by DF D Tue Nov 3 6:54pm EST

    Report Abuse

    Move them to hamilton.........
  16. Dorkie M
    1973. Posted by Dorkie M Tue Nov 3 6:18pm EST

    Report Abuse

    Mike T- you must play catch with Basille (and enjoy it)because you sure hate the Coyotes!

    Blah, Blah, Blah, give them a chance and lets see how they do.

    Who has the current sell out streak? A Canadian team????? NOPE!!!!!!!!!
  17. Steve J
    1972. Posted by Steve J Tue Nov 3 6:15pm EST

    Report Abuse

    Brian,

    Your are right. The league can just fold the franchise, get released from the leases and all contracts. Then turn around a grant a new expansion team, let's say to Quebec City an make $200m for expansion fees. Then be winners all around.

    SJ
  18. Will
    1971. Posted by Will Tue Nov 3 6:14pm EST

    Report Abuse

    i like the flyer but i like to see 2 more teams to make an even 32 i wanna see quebec n"s to come back and another team idk where
  19. Stanley Cupp
    1970. Posted by Stanley Cupp Tue Nov 3 6:06pm EST

    Report Abuse

    Just a guess - but the team will stay in the western half of US. Who already has a relatively new arena & no NBA team?

    San Diego (iPayOne Sports Arena)? Close to LA, Anaheim, San Jose, Denver; will San Diego support a hockey team? Had the NBA Clippers once.
    Kansas City (Kemper Arena) not new but has suites & has had NCAA regional basketball games
    Kansas City (Sprint Center) didn't they try to lure Mario to get the Penguins to move there once?
    Seattle (Kingdome) - renovations? - lost their NBA team - may have decent hockey following & relatively close to Vancouver & San Jose.

    I'm picking KC Sprint Center. St L, Detroit, Dallas, Chicago are close. Just a guess.
  20. Mike T
    1969. Posted by Mike T Tue Nov 3 5:42pm EST

    Report Abuse

    Brian

    The difference between this situation and the Oilers situation though is that the Oilers weren't losing $30 million a year with 5000 people attending games. If it was stupid to purchase the Coyotes before, it has gotten even more stupid.

    Also, couldn't the NHL just fold the Coyotes franchise and offer a relocation franchise? If the Coyotes fold, its like a business closing and thus doesn't that void the lease or not?
  21. Stanley Cupp
    1968. Posted by Stanley Cupp Tue Nov 3 5:37pm EST

    Report Abuse

    Attorneys take at least 40%, varies by state. Attorneys win - everybody else loses.
  22. Blue Blood
    1967. Posted by Blue Blood Tue Nov 3 5:00pm EST

    Report Abuse

    @Post1961

    Piss off Don!!
  23. Brian
    1966. Posted by Brian Tue Nov 3 4:31pm EST

    Report Abuse

    The territorial rights issue has yet to be tested. Toronto claims a single vote veto ... the league is on record as saying it takes a majority vote one way or the other and by-law 36 seems to support the league's position. Since nobody has yet to apply to relocate a team into Ontario it's a moot point.
  24. Brian
    1965. Posted by Brian Tue Nov 3 4:28pm EST

    Report Abuse

    We now enter a phase where the league will attempt to sell the team to a buyer willing to keep the team in its current location ... just as it attempted in every sale in the past 20 years. If no workable plan to keep the team in Glendale comes about, they will then sell to a buyer willing to relocate within the conditions of the NHL Constitution and By-Laws. This isn't the first time this has happened ... probably won't be the last. This situation is actually very reminiscent of the Oilers before the EIG stepped up and bought the team for less money than an earlier bid that would have moved the team to Houston.

    The sticking point on relocation (if it gets to that) will be the lease with Glendale and whatever exit costs a new buyer would incur to break it.
  25. Mike T
    1964. Posted by Mike T Tue Nov 3 4:12pm EST

    Report Abuse

    Steve

    The territorial rights are ILLEGAL though. That's why Balsillie tried to get the NHL to admit it because the only way to get a franchise in Hamilton is by forcing the NHL to do so. So your right, if anyone plays by the rules its impossible to get a franchise in Hamilton or Southern Ontario. However, Waterloo lies outside of both Buffalo and Toronto's territories. Both teams (specifically Toronto) would probably use their influence in the BoG meetings to deny any move there.

    I agree with you about Winnipeg though. My research seems to indicate that David Thompson (former media mogul, net worth 18.7 billion) is behind the proposed Atlanta relocation. I wouldn't be so sure about Quebec though. Kansas City could be a destination as well.
Sign in to post a comment, or sign up for a free account

Video Spotlight

Watch Live Hockey Online with GameCenter Live™