The Ongoing Coyotes Sale Thread

[hwy19man]

Glendale loves these court battles.

"Tohono O'odham Nation is a native band that is planning to build a casino inside Glendale’s city limits. The city spent the last two years and $1.3-million (and counting) fighting Tohono O’odham in court. And losing."

http://www.theglobeandmail.com/sport...rticle1943277/

[Resolute 14]

Originally Posted by Mango

Is there a Twitter to follow that gives un-biased reporting on this situation? Or is it like finding a needle in a haystack?

@brahmresnik is a Phoenix newscaster who often gives good updates.

[Sidney Crosby's Hat]

Originally Posted by Mango

Is there a Twitter to follow that gives un-biased reporting on this situation? Or is it like finding a needle in a haystack?

Brahm Resnik is really good. As is Rebekah Sanders.

http://twitter.com/brahmresnik

http://twitter.com/RebekahLSanders

[Sidney Crosby's Hat]

Originally Posted by Mazrim

So what is the likely path for things to take now that they've gone to this step?

It's going to be much, much harder to sell the bonds though I still think the NHL is going to find the investors to do it. Once the bonds sell, the deal is done. It might be hung up in court but the Coyotes are staying.

[Mazrim]

As a side note, I believe the Jets meter on TSN went up again today.

[afc wimbledon]

Originally Posted by Sidney Crosby's Hat

It's going to be much, much harder to sell the bonds though I still think the NHL is going to find the investors to do it. Once the bonds sell, the deal is done. It might be hung up in court but the Coyotes are staying.

I thought if Goldwater wins the case the bonds are cancelled, investors, I would assume, get their money back and the whole deal crumbles.

[PegCityFlamesFan]

That would mean, you're investment money is tied up in courts for a hell of long time, instead of say... making you any money.

[Sidney Crosby's Hat]

Originally Posted by afc wimbledon

I thought if Goldwater wins the case the bonds are cancelled, investors, I would assume, get their money back and the whole deal crumbles.

Yes, you get it all back at 0% interest over the length of the lawsuit. That's quite the risk to take with $100 million.

Still, I would put money on the NHL pulling a rabbit out of this hat.

[taxbuster]

Originally Posted by afc wimbledon

I thought if Goldwater wins the case the bonds are cancelled, investors, I would assume, get their money back and the whole deal crumbles.

Not necessarily. The problem with analyzing this case is that there is neither one single determinative point of law, nor is there simply one question. There are a series of related, but not necessarily individually determinative, questions.

Either side could prevail on certain points, but lose 'the case'. The problem is determining what 'the case' actually is:

- financing of the original purchase agreement?
- financing of the stream of parking revenues?
- the poison pill arrangement in the financing?
- the legality of the CoG making such a decision in the first instance?
- is there a 'gift' contravening AZ law?
- even if there is a 'gift', could the financing go ahead?

And, to make matters worse -- suppose any party prevails on any of the above and 'wins' -- then what are the repercussions? Does the sale still go ahead? Does it stop? Does the poison pill come into play? Are there damages? How much and to whom?

It's a legal quagmire that I'm not sure anyone has the stomach to fight in defence (ie the NHL, CoG or MH).

[taxbuster]

Originally Posted by Sidney Crosby's Hat

Yes, you get it all back at 0% interest over the length of the lawsuit. That's quite the risk to take with $100 million. .

That's a big MAYBE....there are many factors at play that could have the financing go through, but with a court-ordered reduction in rate - possibly to a rate that the financiers find unattractive. Wouldn't that leave a mess?

[Mr.Coffee]

Somewhat off topic, but when the NHL behaves in such a manner that it does whatever it can to prevent the movement of a franchise... would one not think that this is bad for business?

The NHL's obtuse dealings are becoming more and more a turn-off. There is just a mounting list of BS I find that they try and control and overall, F it up. I'll provide another example of their glaring lack of judgement: supplemental discipline.

[Jordan!]

Jude Lecava who works at Fox 10 was told by Hulsizer today that the deal will go through regardless and that he is also planning a counter suit against Goldwater as per @walshtodd

[Sidney Crosby's Hat]

Originally Posted by Bouw N Arrow

Jude Lecava who works at Fox 10 was told by Hulsizer today that the deal will go through regardless and that he is also planning a counter suit against Goldwater as per @walshtodd

I believe Hulsizer on that one. As for the second part, if it gets to that point something has gone horribly wrong with the deal.

[taxbuster]

Originally Posted by Mr.Coffee

Somewhat off topic, but when the NHL behaves in such a manner that it does whatever it can to prevent the movement of a franchise... would one not think that this is bad for business?

The NHL's obtuse dealings are becoming more and more a turn-off. There is just a mounting list of BS I find that they try and control and overall, F it up. I'll provide another example of their glaring lack of judgement: supplemental discipline.

I suspect it's not really "the NHL" that you dislike - but Gary Bettman. And, as for him, you have to remember that his clients are not you, but the owners. As long as he makes them money, they will continue to support him and his argumentative, combative BS.

[PegCityFlamesFan]

Jude Lecava who works at Fox 10 was told by Hulsizer today that the deal will go through regardless and that he is also planning a counter suit against Goldwater as per @walshtodd

If that's the case, I'm sure he would of done the deal... oh I don't know in December like he said, or January, or when he said in a few weeks. Don't really believe a word that comes out of his mouth.

Here's old man Lieberman's response:

Lieberman does not agree. He says the city is already using excise taxes, which were also pledged to be used for bond payments if there were any shortfalls in parking revenue, to cover shortfalls in sales taxes for the debt on Jobing.com Arena. The city is also facing the same problem in covering the debt for a spring-training facility built for the use of major-league baseball teams.
Lieberman said the Coyotes’ arena only provided $5.1-million last year to cover the $13.2-million annual debt service on it. The rest came from excise taxes.
“There is no possible way parking [revenue] can pay for [the bonds],” Lieberman said. “We can’t afford it.”

[dissentowner]

Just move the damn team already.

[greentree]

The NHL and its board of governors are facing years and years of hostility from Glendale taxpayers if they allow the Coyotes to remain there, under any and all of the proposed subsidy/bond selling scenarios.
There is no business case whatsoever for that team to remain in Glendale. (There was no business case for the new rink either, but few wanted to listen.) The taxpayers are going to get hosed. And who in their right minds would take the bonds, given all the potential liabilities?
I can't believe the NHL BOGs think that leaving the Yotes in Glendale will protect the value of their own assets. Like dissentowner just said, "Just move the damn team already."
But nothing in this Glendale/NHL debacle has made any sense for many years now.

[Ducay]

Clearly a thread full of blue-collar Manitobans has more business acumen than the entire ownership group and BoG which is basically made up of filthy rich businessmen.

So ya, lets move the team already

[Vulcan]

Originally Posted by Ducay

Clearly a thread full of blue-collar Manitobans has more business acumen than the entire ownership group and BoG which is basically made up of filthy rich businessmen.

So ya, lets move the team already

It doesn't take much business acumen to read that the Coyotes are losing money every year and even now with a decent team, attendance hasn't improved.

The only reasons that I can think of why the Count is so adamant in keeping the team in Glendale is the upcoming American TV contracts and Gary's ego. Gary's pettiness in not being able to get things done, is nothing new.

[Sidney Crosby's Hat]

Originally Posted by Vulcan

The only reasons that I can think of why the Count is so adamant in keeping the team in Glendale is the upcoming American TV contracts and Gary's ego. Gary's pettiness in not being able to get things done, is nothing new.

Or Atlanta is in worse shape than Phoenix and he has no appetite for owning another NHL team since only one market (Winnipeg) has the means for a 2011-12 relocation.