Kukla's Korner Hockey
by Paul on 06/26/13 at 12:39 PM ET
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.
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