Kukla's Korner Hockey
from Paul Giblin of the Arizona Republic,
Negotiations to keep the Phoenix Coyotes in Arizona fell to a new level of chaos Friday evening, with both Glendale officials and the team’s prospective owners saying they cannot overcome their latest impasse.
Unless the sides somehow overcome their differences during the next few days, the Coyotes’ fate seems sealed.
Call in the moving vans. Destination: unknown.
The impasse arose Friday during what was supposed to be a public workshop to discuss a proposed agreement between the council and the prospective team owner, IceArizona, an investment group headed by partners doing business as Renaissance Sports & Entertainment. The agreement is for IceArizona to use and manage Jobing.com Arena.
But council members revealed during the hearing that earlier that day they had devised a counterproposal. Specifically, they wanted a five-year out clause that mirrored provisions IceArizona executive had given themselves.
added 12:54pm, via Craig Morgan TwitLonger,
NHL deputy commissioner Bill Daly on Glendale Mayor Jerry Weiers' characterization of July 2 as an artificial or forced deadline: "He can characterize it the way he wants, but it is what it is. We either get certainty in Glendale by July 2, or we immediately pursue our other options outside of Glendale. We have already gone past the date we were comfortable accommodating in the first place. I hope for the sake of the Coyotes fans in Glendale that they don't lose the team because of a miscalculation made by members of the City Council."
Video via Sportsnet, the majority of the video is Phoenix talk...
from Scott Bordow of ArizonaCentral,
If I’m tired of this story, I can’t imagine how the Coyotes’ players, staff and fans are feeling. They’ve been teased and tormented for four years now. They’ve endured court hearings and potential lawsuits and premature Gary Bettman news conferences.
They’ve put up with a cast of characters unlike anything we’ve seen in Arizona sports history: Jim Balsillie and Jerry Moyes, Jerry Reinsdorf, Elaine Scruggs and Ed Beasley, Matthew Hulsizer and the Goldwater Institute, Greg Jamison and Ice Edge Holdings, Darin Pastor and, of course, Bettman and his sidekick, Bill Daly.
All that’s missing is Gilligan and the Skipper. (The Goldwater Institute would play the part of Thurston Howell III, naturally).
But the shenanigans, stops and starts were finally going to end. Renaissance received its blessing from the NHL. It began negotiations with the Glendale City Council and compromise was the word of the day. Just one week ago, reports surfaced that the two sides had the framework of an agreement in place. All that was left to do, it seemed, was cross the t’s and dot the i’s.
Then, for whatever reason, the deal fell apart. Someone tweeted Wednesday morning that the Coyotes would move to Seattle but play a final season in Glendale while Key Arena was being readied for hockey. Less than an hour later, though, news broke that the deal had been resurrected and a vote will take place Tuesday.
I don’t know. Shouldn’t we just shoot the horse already?
from Darrell Jackson of the Glendale Star,
The proposal by an outside source that would allow the City of Glendale to purchase the Phoenix Coyotes became clearer in specifics as to how the city could purchase part of the team in new documents obtained by The Glendale Star.
An unnamed source within the city manager’s office said the city did reach out for more information on the proposal. Acting City Manager Dick Bowers could not be reached for comment.
While the National Hockey League by-laws state that, “… the maximum amount of equity ownership in the entity that may be sold to the public is 49 percent,” legal experts have said that by-laws can be changed, particularly when a municipality has funded 100 percent of the team’s expenses for almost half a decade without the ability to recover its costs.
The proposal sent to city council would have the city purchase 49 percent with an identified private investment group investing the other 51 percent. It is based on the terms currently being reported that the NHL has agreed in principal to with Renaissance Sports & Entertainment (RS&E).
That private investment group has not been identified at the time of this writing.
Read the press release from the Coyotes below...
from Dan Bickley of the Arizona Republic,
“It’s the most important 24 hours in the history of the Phoenix Coyotes,” the source said.
Here’s the latest:
To complete its financing, the Renaissance Sports and Entertainment group needs a firm commitment from the Glendale City Council. They need a number on paper. They say they need $15 million annually.
The city has budgeted $6.5 million for management of Jobing.com Arena.
To bridge that $8.5 million gap, the two parties have negotiated revenue streams that will theoretically benefit both sides. The city will get a cut of parking, which will no longer be free for Coyotes fans. It gets a cut of future naming rights, which expire in 2016. It’s get a portion of ticket surcharge, and will oversee an escrow account that could pay the city even more money.
On paper, it could amount to $7-8 million of new revenue for Glendale every year.
But word is, the city of Glendale wants that number guaranteed. RSE won’t go down that road. And some fear that snag could be a potential deal-killer.
Seattle Mayor Mike McGinn has acknowledged recent discussions with NHL Commissioner Gary Bettman.
In a statement, McGinn said about two weeks ago a representative of Chris Hansen introduced him to potential investors in an NHL team, who also met with a number of Seattle City Council members.
And McGinn said last week he spoke with NHL Commissioner Bettman.
"Our message to all parties has been the same: We believe we can support an NHL team as a tenant at KeyArena, and as a potential tenant of a new arena, subject to all parties reaching agreement on terms," McGinn said.
McGinn went on to say "As recent news reports indicate, it appears the NHL is taking the new ownership proposal seriously. But we also know from experience that it may be some time before an NHL team is located in Seattle, as the home city for the Phoenix Coyotes is working to keep them. We will keep the public informed as we learn more about the possibility of the NHL in Seattle."
Friday reports surfaced stating the framework is in place for a lease agreement that would keep the Coyotes in Phoenix.
added 6:46pm, the story from KING5.com has had additional information added to it, so you may want to check it out.
from Dan Bickley of the Arizona Republic,
Divorces don’t happen overnight. Most times, you can hear them coming.
Loose comments? A chilly change in tone? If you’re a Coyotes fan, you were jolted by both before Game 1 of the Stanley Cup Final.
Commissioner Gary Bettman said time was running short on the city of Glendale. He said “stuff’s gonna happen” in the next two weeks. He even tossed out the visual of a boarded-up Jobing.com Arena.
Not what you expect from a life partner.
Meanwhile, Deputy Commissioner Bill Daly acknowledged for the first time that the Coyotes might not be playing in Arizona next season. He said the puck was in Glendale’s end, assuming all city-council members actually would catch the metaphor.
It sounded a lot better when we were on the 1-yard line.
from Craig Morgan of FoxSports Arizona,
While sources maintain that the NHL is pressuring Renaissance Sports and Entertainment to strike a deal this week (at least in principle) with the City of Glendale on a lease agreement for Jobing.com Arena, Glendale councilmember Gary Sherwood received mitigating information over the weekend.
Sherwood spoke to NHL deputy commissioner Bill Daly on Sunday, and Daly assured him that there is “no deadline, per se.” Daly told Sherwood that if the city and RSE appear to be headed toward an agreement, the NHL would be amenable to the Glendale City Council voting on it in July rather than on June 25, when the council next convenes.
That somewhat contradicts what sources have said the league is telling RSE. Under that scenario, the city and RSE -- the ownership group of George Gosbee, Anthony LeBlanc, Daryl Jones and Avik Dey -- would need to have a deal ready by June 17 so that it could be presented at the Glendale City Council Executive Session on June 18 and then voted on at the council meeting one week later.
from Sarah McLellan of the Arizona Republic,
“It’s a bit like a player in the last year of his contract,” Tippett said. “There’s times you’d probably like to sign, but you’re not sure if you’re going to sign. That’s kind of where it is right now.”
Tippett hasn’t decided whether he’d take a one-year contract if it becomes clear the Coyotes will last in Glendale for at least that time. And yet, the Coyotes are his top choice.
“I haven’t thought about moving yet,” he said. “… If Phoenix offers me a contract and it looks like we’re going to keep moving in the right direction, then I’ll look at it.”
Despite the restrictions that appear to be in place for a fifth straight summer, Tippett hasn’t soured on the idea of guiding this group, but he craves resolution. And change.
“It’d be great to have an opportunity to take it to the next level,” he said, before offering this understatement: “To get it there, I think you’re going to need ownership at some point.”
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.
From breaking news to in-depth stories around the league, KK Hockey is updated with fresh stories all day long and will bring you the latest news as quickly as possible.
Email Paul anytime at email@example.com