Archive for May 7th, 2009

07
May

Coyotes Chapter 11 hearing was pretty much a wash

Jerry Moyes

I have never seen quite a legal circus as the Phoenix Coyotes Chapter 11 Bankruptcy hearing this afternoon…

The hearing was pretty much the start of a long couple of weeks for the Phoenix Coyotes and their fans, the NHL, the City of Glendale and the numerous other business represented at the hearing.

While the NHL and Phoenix Coyotes seemed mostly in agreement on how the next few weeks will proceed (outside of who is actually in charge), the one real source of contention to several of the motions, was the City of Glendale.

And who is to blame them? The City of Glendale, it turns out, is owed over $2.5 million by the Phoenix Coyotes for their portion of ticket sales from each Coyotes home game. In accordance with the lease between the Coyotes and the City, the Coyotes are to pay $2.60 per ticket sold at the arena. This $2.5M owed to the City of Glendale is neither a secured or unsecured loan. It is rightfully their money, that the Coyotes are legally obligated to pass along to the City after each game.

The second point of contention by the City of Glendale is that per the lease, the team is required to play hockey in Glendale for another 26 years. Their argument is based on a similar ruling with the Pittsburgh Penguins, that the lease is “non-discharged” and the team should not be allowed to move from Jobing.com Arena per their agreement.

Other than that though, the NHL and the Phoenix Coyotes representation seemed in agreement over how the next few weeks will proceed. In fact, the NHL had not yet filed a motion contesting that they are rightfully in charge of the Coyotes, though the NHL did state that they planned to file a motion by the end of the day.

PSE Entertainment, the group headed by RiM CEO, Jim Balsillie, stated that they “put a legitimate offer on the table” and that they “wanted a resolution by June 22nd, prior to the NHL draft.”

So what you should take away from today’s hearing is basically this:

  • The NHL and Coyotes are still fighting over who will represent the team
  • The City of Glendale is owed $2.5M and will get their money before any of the secured or unsecured lenders
  • The City of Glendale will argue and fight to keep the team in Phoenix
  • PSE Entertainment’s offer is the first, but probably not the last offer to purchase the team that will come up in the next few weeks.
  • The next defining date to throw out on your calendar will be May 27th. That is when the final hearing on all of the interim motions will take place.

07
May

A Species on the bRink: The Phoenix Coyote

07
May

Phoenix Coyotes in search of new owner, life in the desert

coyoteshelp

Do you have $217.5 million in expendable income? Are you interested in being the savior of 14,000 people who have wandered through the desert for 13 years? Want to own a key piece of the up and coming Phoenix suburb of Glendale? Well you’re in luck, the NHL and the Phoenix Coyotes need you! Act by June 30th and the City of Glendale will throw in a great lease at the beautiful Jobing.com arena and other perks! Hurry before the moving trucks head to Glendale and the team heads north of the border.

That’s the want ad that Jerry Moyes, Garry Bettman, Wayne Gretzky, Steve Ellman and anyone else who has been involved in the debacle that is the Phoenix Coyotes, should have to post. It should be required to be run anywhere rich Arizonans may read.

Some will tell you that hockey in the desert just doesn’t work. Others will say that Phoenix just isn’t a good enough sports town to support the amount of teams that call the city home. The problem is neither assumption is correct.

While both Moyes and Ellman are quality businessmen in their respective fields they had no clue how to run a sports franchise. It was a fact that showed on and off the ice throughout the last thirteen years the two owned the team.

They mismanaged the original building of their arena by selecting an area in Scottsdale where residents would never approve of it. They then moved the team to the far West Valley with a plan more based on the entertainment district they could build around the arena than the fans they could attract to it, thanks Ellman. They brought in Wayne Gretzky as the poster boy of the franchise and hired him as head coach with no experience (didn’t they see how well that worked out for Isiah Thomas, Magic Johnson, Ted Williams…you get the idea). They failed to stick to a consistent plan on how to develop talent and most of all they haven’t put a winning product on the ice since 2002.

No matter what pro sports team you are, what market you call home or what league you play in, if you don’t have winning seasons, you are going to lose money. Plain and simple.

NHL commissioner Gary Bettman seems to agree as he told ESPN Radio:

“We’re gonna fix [the Coyotes]. That’s what we do when we have franchises in trouble. We have a pretty strong record of being supportive of franchises where they are, fixing them and making them work.”

That’s right fix them. Not move them. Not give up but fix them. That starts with getting an ownership group in place that understands the business framework in which they are operating.

If the fans in Phoenix want hockey to remain in the desert they have until June 30th to find their savior. That savior better have deep pockets. Deep enough to secure a $217.5 million selling price in full.

Where is the phone number for Jerry- Colangelo, Reinsdorf or hell even Lewis will do.




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Coyotes Fast Facts

Owner(s): National Hockey League
General Manager: Don Maloney
Coach: Dave Tippett
Founding Year: 1972 (moved to Phoenix in 1996)
Previous Cities/Names: Winnipeg Jets
Conference: Western
Division: Pacific
Division Opponents: Anaheim Ducks, Dallas Stars, Los Angeles Kings, San Jose Sharks
Championships: None
Conference Titles: None
Division Titles: None
Minor League Affiliate:

  • San Antonio Rampage (AHL)
  • Arizona Sundogs (CHL)

Mascot: Howler
Arena: Jobing.com Arena (Formerly Glendale Arena)
Arena History:America West Arena

Broadcast Affiliates: XTRA Sports 910, AZTV, FSN Arizona
Broadcasters:Dave Strader (TV), Bob Heethuis (radio), Tyson Nash (TV)
Official Website: PhoenixCoyotes.com

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