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Talk Of City Of Glendale Purchasing Part Of The Coyotes

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.

continued

Filed in: NHL Teams, d, | KK Hockey | Permalink
 

Comments

SK77's avatar

Stupid question(s)—as I quit trying to understand and follow this whole situation some years ago—but would it be financially beneficial for the City of Glendale to purchase the Coyotes?

And could Glendale even afford to keep up with a minimum salary cap that’s inevitably going to go up every year? Do the other 29 owners foot the bill in some way?

While is seems like a lot of cities are currently struggling with how to pay their own city workers, police, fire, etc., and freezing salaries and cutting pensions as a result ... how does that all balance out when at the same time you’re essentially hiring multi-million dollar athletes with tax payer dollars?

I’m not trying to be snarky or dismissing here. I really just don’t understand how this works or what the thought process is behind it, but if anyone has ideas or links I’d genuinely be interested.

Posted by SK77 on 06/26/13 at 12:52 PM ET

awould's avatar

After this whole saga, this newest thing seems like something from the old SNL skit for Bad Idea Jeans.

http://www.hulu.com/watch/10310

Posted by awould on 06/26/13 at 01:26 PM ET

mrfluffy's avatar

Looks and smells like (lies) desperation.

Posted by mrfluffy from A wide spot on I-90 in Montana on 06/26/13 at 01:42 PM ET

Hootinani's avatar

Just like in the RSE deal, if this were to happen, it would only be a matter of a few years before Glenndale would be looking to sell and the NHL would be right back at square one again.

Posted by Hootinani on 06/26/13 at 02:59 PM ET

Primis's avatar

*facepalm*

Posted by Primis on 06/26/13 at 03:11 PM ET

Evilpens's avatar

mrfluffy it is & as a Fan of a franchise that has declared Bankruptcy twice & almost move once I don’t say this lightly, Just Move it to Lost Wages, Seattle or QC

Posted by Evilpens on 06/26/13 at 03:22 PM ET

Avatar

So after years of just giving the NHL money to keep the team in Glendale, NOW the city decides they want to buy just under half of the team?  Why wasn’t that their first response when asked to shell out tens of millions of dollars to support the team?

Posted by RoneFace on 06/26/13 at 05:24 PM ET

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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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