Ugh...
from Rick Westhead of TSN,
The special meeting will begin at 9 pm et, but voting may not take place for hours since each member of the public who attends the meeting is allowed three minutes apiece to speak to the issue.
It’s unclear how the NHL might respond if Glendale’s city council votes to quash the agreement. Anthony LeBlanc, the team’s chief executive and part owner, has promised to pursue all legal options if the city cancels the arena management deal.
That’s one option, several NHL executives and investment bankers who specialize in sports industry finance said in interviews with TSN, although it’s an uncertain one.
“What happens if you’re the team and you file for an injunction and win and the city appeals and wins on appeal midway through the season?” said one investment banker who has advised clients both purchasing and selling NHL teams.
“It’s a nightmare any way you look at it.”
That scenario would result in large legal fees, and would cast a shadow over the team that would depress everything from season ticket sales to local sponsorship deals.
“There are a lot of questions even now about whether the current owners of this team will be able to fund losses next year, let alone if they have huge legal costs and lose the arena management cash,” said the investment banker.
The former NHL team owner would only speak on the condition of anonymity because he is in talks to buy a minority interest in another NHL club. The investment banker said the league would take business away from his company if he spoke critically about the NHL or its teams.
Several NHL sources said it’s also possible that the Coyotes might ask the league for permission to move to a new market, such as Quebec City or Seattle.
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