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troutman · 07-05-2012, 10:07 PM

Glendale taxpayers threaten to torpedo Coyotes sale

http://www.theglobeandmail.com/sport...rticle4393492/

However, since Jamison made it clear he needs the arena lease to complete his purchase of the team, this leaves Bettman and Daly with some unpleasant options.

The first is to continue the NHL’s ownership of the Coyotes for one more year, which means paying for losses that could be more than $40-million. But there will likely be no $25-million payment from Glendale to offset the losses.

In the last two years, the city agreed to pay $50-million to the NHL to cover some of the losses but budget woes left Glendale $5-million short of this year’s payment. Frisoni said there has been no discussion of another payment if the NHL can’t sell the team.

Bettman has long refused to consider moving the Coyotes. Doing so now would be difficult but not impossible. But the only candidate with an arena that could be whipped into NHL shape quickly is Quebec City and Bettman has never shown enthusiasm for that move.

In some NHL circles, a more drastic solution is envisioned. The Coyotes could simply be folded, its 23 players sent to other NHL teams through a dispersal draft and the league would operate with 29 teams next season.

This would allow the NHL to collect expansion fees of $100-million or more each from Seattle and Quebec City, the top candidates for NHL teams, rather than a single relocation fee of $60-million or so for the Coyotes. That is a gain of at least $140-million.

However, this would create legal headaches with lenders holding the Coyotes franchise as collateral and probably the NHL Players’ Association. So the NHL’s longest limbo dance will continue for now but a nasty choice could be coming quickly.

07-05-2012, 10:07 PM	#1457
troutman Unfrozen Caveman Lawyer Join Date: Oct 2002 Location: Crowsnest Pass Exp:	Glendale taxpayers threaten to torpedo Coyotes sale http://www.theglobeandmail.com/sport...rticle4393492/ However, since Jamison made it clear he needs the arena lease to complete his purchase of the team, this leaves Bettman and Daly with some unpleasant options. The first is to continue the NHL’s ownership of the Coyotes for one more year, which means paying for losses that could be more than $40-million. But there will likely be no $25-million payment from Glendale to offset the losses. In the last two years, the city agreed to pay $50-million to the NHL to cover some of the losses but budget woes left Glendale $5-million short of this year’s payment. Frisoni said there has been no discussion of another payment if the NHL can’t sell the team. Bettman has long refused to consider moving the Coyotes. Doing so now would be difficult but not impossible. But the only candidate with an arena that could be whipped into NHL shape quickly is Quebec City and Bettman has never shown enthusiasm for that move. In some NHL circles, a more drastic solution is envisioned. The Coyotes could simply be folded, its 23 players sent to other NHL teams through a dispersal draft and the league would operate with 29 teams next season. This would allow the NHL to collect expansion fees of $100-million or more each from Seattle and Quebec City, the top candidates for NHL teams, rather than a single relocation fee of $60-million or so for the Coyotes. That is a gain of at least $140-million. However, this would create legal headaches with lenders holding the Coyotes franchise as collateral and probably the NHL Players’ Association. So the NHL’s longest limbo dance will continue for now but a nasty choice could be coming quickly.