Kukla's Korner Hockey
from Paul Giblin of the Arizona Republic,
The prospect of buying the Phoenix Coyotes lured four investors from across North America to risk their reputations and fortunes in professional sports.
Just seven months ago, they didn’t even all know one another. But last week, the new partners’ investment group bought the beleaguered franchise from the National Hockey League for $170 million.
The four executives are well-established in the finance and energy industries, but they readily admit that they’re rookies in the sports industry.
During their first official Coyotes news conference at Jobing.com Arena last week, the new team governor, George Gosbee, was asked how running a sports enterprise differs from running other businesses.
“Well, we’re about to find out,” he said.
from Dan Bickley of the Arizona Republic,
The entire community might even wear party hats if we could convince the new owners to make one final gesture:
Ditch the out clause that could reignite relocation fears within the next five years, one that keeps a clock hanging over this hockey team.
“I don’t understand all the attention it is getting,” NHL Commissioner Gary Bettman said. “The fact of the matter is, every contract has a term. And this term, for it to be invoked, requires the ownership group to lose $50 million, which I assure you they have no intention of doing.”
Two of the new owners — George Gosbee and Anthony LeBlanc — also have bemoaned how the out clause has become a source of negativity spoiling an otherwise festive transaction. But they negotiated the clause. If it’s such a non-factor, why was it so important to begin with?
Truth is, the Coyotes must still be a risky proposition, or they would have attracted other big-money investors. Without a spike in business, it couldn’t be that hard to show $50 million in losses.
Besides, smart accountants can perform magic tricks, if they really want to leave.
“Nobody’s playing any games with that,” Bettman said. “When you have this type of clause, you can’t play accounting games. The fact of the matter is it would require them to lose a real $50 million, and as I said, they have no intention of doing that whatsoever.
“And frankly, they’re not incentivized to do that. The best outcome is for the community and fans, the business community, to support the franchise and have this be the huge success we all believe it can be.”
A Q & A with new Coyotes Alternate Governor Anthony LeBlanc who answers some questions about taking over the ownership of the team.
from Mike Sunnucks of the Phoenix Business Journal,
It just wouldn’t be the Phoenix Coyotes ownership saga without a few more twists and turns.
Renaissance Sports and Entertainment — the group of business executives and oilmen from Canada and Texas who aim to buy the Coyotes — has until Monday, Aug. 5, to finalize its purchase of the team from the National Hockey League.
The Monday deadline is part of the city of Glendale’s 15-year, $225 million arena deal that enables Renaissance and its Ice Arizona entities to secure financing and keep the team in Arizona.
But two sources familiar with the Coyotes deal say some financing for the sale has either not been finalized or has dropped out of the deal.
One local business executive said prospective owners are meeting with financiers and the NHL on the matter.
added 8:23am, Updated story from Sunnucks,
Two local business executives familiar with the Coyotes situation earlier this week told the Phoenix Business Journal that RSE group was still finalizing financing and other parts of the deal. They also said some financing may have not been totally lined up, or needed to be replaced.
That solicited a strong denial from RSE and Ice Arizona executive Daryl Jones. Others close to the deal and supportive of it also insist the sale is on track toward completion.
from Amanda J. Crawford and Brian Chappatta of Bloomberg,
Glendale, Arizona, which has borrowed more than $355 million for professional sports venues, has seen the yield penalty on its bonds jump after approving an additional $225 million outlay to keep the National Hockey League’s Phoenix Coyotes in town.
While Coyotes fans gathered in Glendale city council chambers cheered the deal that is poised to keep the team in the Phoenix suburb’s publicly financed arena, investors have been less enthusiastic. Interest rates on some Glendale debt set a two-year high and yield spreads swelled as much as 20 percent after the city council on July 2 cleared a lease paying the team’s prospective owners $15 million annually for 15 years to manage the facility.
The deal weakens the former farming community’s credit and detracts from its ability to serve its 232,000 residents, said Pat Liberatore, an analyst at Moody’s Investors Service. The city has already had its bond rating cut by both Moody’s and Standard & Poor’s since November, and fired workers and raised taxes to close a deficit last year.
GLENDALE, ARIZONA – Phoenix Coyotes General Manager Don Maloney announced today that the Coyotes have signed forward Max Domi to a three-year, entry-level contract. As per club policy, terms of the deal were not disclosed.
"We are very pleased to sign Max to an entry-level contract," said Maloney. "Max is a very talented young player with a bright future. He had an impressive prospect development camp and we look forward to watching his progress."
GLENDALE, ARIZONA – Phoenix Coyotes General Manager Don Maloney announced today that the Coyotes have re-signed left wing Lauri Korpikoski to a four-year contract. As per club policy, terms of the deal were not disclosed.
“We are pleased to sign Lauri to a multi-year contract,” said Maloney. “Lauri is an intelligent, two-way forward, an effective penalty killer and an excellent skater. We are excited to have him back with us in Phoenix this season.”
“I am very happy to be back with the Coyotes,” said Korpikoski. “We have a great group of players here and an excellent coaching staff. It’s a great organization and this is where I wanted to play. ”
via the Goldwater Institute,
STATEMENT OF GOLDWATER INSTITUTE ON GLENDALE-COYOTES DEAL
Based on the information available to us at this time, we do not believe that the Glendale arena management deal would be held unconstitutional. Changes made to the agreement during the course of negotiations partially bridged the gap between the market cost of arena management and the amount of the payment to the team owner, thus bringing the deal into conformity with cases interpreting the Gift Clause of the Arizona Constitution.
The initial deal proposed several years ago would have included not only a substantial annual arena management fee, but a $100 million up-front payment to subsidize the purchase of the team. We are proud to have played a constructive role in protecting the taxpayers and taking an illegal deal off the table.
Glendale’s long and painful experience illustrates why local governments should focus on providing basic and essential public services and avoid the temptation to subsidize private enterprises such as sports teams.
from Sarah McLellan of the Arizona Republic,
Domi is a Type I diabetic and whether he’s in the midst of a workout, practice or a game, he excuses himself every 15 to 20 minutes to check his blood-sugar level. If it’s low, he takes a swig of Gatorade. If it’s high, he lets the insulin pack that’s strapped to his hip do the work.
“It’s a lifestyle change,” Domi said. “Now I have to incorporate diabetes into it. Your diet, before you go to bed, you have to know how you’re feeling. It’s every little detail of your day that you don’t realize until it hits you.”
Domi discovered he had diabetes five years ago when he was traveling back to Toronto from a minor-hockey league tournament in Detroit. Every five minutes, his mom, Leanne, had to stop the car to retrieve more water or Gatorade.
In less than three hours, Domi had downed approximately 9 liters.
That prompted a visit to the hospital and ultimately a diagnosis of Type I diabetes.
“I had no clue what that meant,” said Domi, whose chief concern was whether or not he’d still be able to play hockey.
Once he was told he could, Domi accepted the challenge. He spent the next week at the hospital learning about the chronic condition, which limits or prevents the production of insulin in the body. According to the World Health Organization, 347 million people worldwide have diabetes.
About Kukla's Korner Hockey
Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.
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