[sureLoss]

https://www.forbes.com/sites/mikeoza.../#56baaef33fb7

Andrew Barroway, the owner of the Arizona Coyotes, is looking to sell 49% of the National Hockey League team at a $500 million valuation, according to multiple sources.

Barroway became the majority owner of the Coyotes in December, 2014 and the sole owner of the hockey team in June 2017.

The fact that Barroway is now seeking cash for his team is not surprising. When he bought out his partners I wrote: “Barroway’s buyout of his partners is the riskiest deal I can recall in recent memory. ... Barroway and the Coyotes are now leveraged to the hilt. As of now, the Coyotes have $250 million of debt. There is $100 million of NHL credit facility debt and two loans from MGG Investment Group; one for $100 million with about a 10% interest rate and a payment-in-kind loan for $50 million that would be redeemed in six years for $100 million.”

One source believes the deal as being presented would give the new investor a path towards control, if not immediate control. The team has consistently lost money. By our count, the Coyotes have posted aggregate operating losses (in the sense of earnings before interest, taxes, depreciation and amortization) of $45 million for the last five seasons through 2016-2017.