Alexa
  • Directory of Taiwan

NHL's offer for Coyotes is $140 million

NHL's offer for Coyotes is $140 million

The NHL is offering about $140 million to purchase the Phoenix Coyotes in U.S. Bankruptcy Court and would avoid a sticky issue still facing the case by accepting the existing lease to play in Glendale.
The league announced on Tuesday it was submitting a bid but did not reveal the size of the offer until Wednesday.
The other bidder that would keep the team in Arizona, Ice Edge Holdings, did not include a figure in its bid, but its CEO Anthony LeBlanc said the partnership will offer up to $150 million.
However, the Ice Edge bid is contingent on reaching a new lease agreement with Glendale, something LeBlanc said must happen by the end of next week to keep the offer viable.
Neither offer would assume the $8 million per year coaching contract of Wayne Gretzky, nor provide any money to Coyotes owner Jerry Moyes.
NHL deputy commissioner Bill Daly did not respond to an e-mail asking if Gretzky would be replaced or his contract simply renegotiated. LeBlanc said his company wants to keep Gretzky in any capacity, especially as coach, and would seek to negotiate a new contract.
The two bids plus the $212.5 million offer of Canadian billionaire James Balsillie, which is contingent on immediately moving the franchise to Hamilton, Ontario, were filed on Wednesday after being submitted by a court-imposed deadline on Tuesday for review by the debtors in possession, a group headed by Moyes.
The NHL says it would assume the contract with Glendale to play at Jobing.com Arena through the coming season. But in the meantime, the league would attempt to negotiate an agreement that would make the team more attractive to a buyer.
The league says that if its bid is successful, it intends to sell the team to a third party.
Under the NHL offer, 20 percent of any net profit of that resale, to an amount up to $20 million, would be added to the bankruptcy sale price. The league added, however, that it expects no net profit from the resale of the team.
Moyes stunned the league by taking the Coyotes into bankruptcy on May 5 with a plan to sell the team to Balsillie, igniting a drawn-out, messy court fight. Under Balsillie's plan, Moyes would get $104 million of the $300 million he says he loaned the team.
Both the NHL and Ice Edge contend that lost money was equity, not a loan, and that he should be removed as a creditor.
LeBlanc said in an interview with The Associated Press that he will be in Arizona next week to meet with Glendale officials in the hope of finalizing a deal.
The Coyotes are scheduled to be sold at auction on Sept. 10.
Ice Edge, a partnership of six Canadians and two American investors, also still must finalize details of agreements in principal reached with the NHL and the Coyotes' largest secured debtor, SOF Investments, which is owed some $80 million. The NHL bid says it would either pay SOF the $80 million or work out a repayment agreement.


Updated : 2021-07-28 07:55 GMT+08:00