Kukla's Korner Hockey
by George Malik on 09/21/06 at 01:49 PM ET
The majority owner of the Phoenix Coyotes borrowed $110 million from a trust set up for his children, and now they are suing to get it back. A lawsuit filed in Maricopa County Superior Court says Jerry Moyes obtained more than $33 million from the Moyes Children Limited Partnership in January 2002 when he signed a promissory note. The note entitled him to borrow up to $110 million with interest equal to the prime rate. He did hit the limit, the lawsuit says. The money was due to be repaid in January 2005, but the court records say it has not been.The lawsuit's a problem as he may have used the money to bankroll his purchase of the Coyotes:
The former chief executive officer of Phoenix-based Swift Transportation has been the financial muscle behind the Coyotes for years. Moyes, developer Steve Ellman and former NHL star Wayne Gretzky bought the team in 2001 for a reported $127 million. In 2002, Moyes became the majority owner when he paid off $60 million in loans and invested an additional $20 million that allowed Ellman to purchase the team for about $125 million.continued
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