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  • Relocate the Phoenix Coyotes to !! ???

    The NHL hasn't taken over control of the Phoenix Coyotes, but it is taking an active role in trying to find new investors or ownership for the financially strapped franchise and is being kept apprised of any "significant" financial decisions the team makes, ESPN.com has learned from team and league sources.

    The league also is trying to help broker changes to the existing lease with the city of Glendale in the hopes of making the situation more attractive new investors or owners.

    Coyotes owner Jerry Moyes is in dire financial straights, with his outside business interests -- most notably Swift Transportation, a large trucking firm -- having been hammered by high gasoline costs, followed by the dramatic downturn in the economy.

    And although team officials say the club has never relied on Swift revenues to run the team, the Coyotes aren't in much better shape and are expected to lose another $30 million or more this season, on top of the more than $60 million they are reported to have lost the past two years.

    In short, Moyes wants out, a number of sources told ESPN.com. At the very least, he is in desperate need of an influx of capital to help in the continued operation of the team.

    Multiple sources told ESPN.com the biggest hurdle is the current lease with Glendale.

    The 30-year lease that accompanied significant municipal support in the building of Jobing.com Arena (the municipality put up $180 million of the $220 million price tag) has a number of problem areas as it relates to the franchise's ability to generate revenues.

    Take parking. The Coyotes, unlike most teams in the NHL, receive nothing from parking fees at the arena. Instead, they actually pay a surcharge of $2.70 per vehicle. That means instead of generating upwards of $10 million in revenue, they pay more than $2 million.
    In short, said one source, they are paying people to park at their building.

    Changing that part of the lease is one of the areas the NHL is trying to help renegotiate with the city. Ultimately, the league is hopeful it can help create strategies where both the municipality and the team can gain, as opposed to simply asking the municipality for concessions.

    The league is helping the Coyotes by providing detailed data from other franchises on revenue streams, especially those in non-traditional hockey markets.

    Sources say the talks with the city "are in progress" but it's unknown how amenable Glendale officials are to making alterations to the lease.

    "Everybody agrees that we need to find a solution that works for both of us," team CEO Jeff Shumway told ESPN.com Tuesday.

    No one knows for certain if the Coyotes can finish out the season under the current financial climate, and at some point the specter of bankruptcy looms large.

    Sources say the team hasn't come close to failing to meet the payroll, but if that situation were to present itself, the NHL would move swiftly to take over operations.

    The fact the league is significantly involved now suggests it is in a position to step in quickly to provide what might be described as "bridge" funding of the team's operational costs and maintain the integrity of the franchise.

    "There simply aren't any subtle ways to deal with this situation anymore," a source said.

    City of Glendale spokesperson Julie Frisoni said the city has a policy of not discussing ongoing negotiations. She did say that city lawyers have investigated the lease and believe that in the event of bankruptcy, the city and its investment are well-protected.

    It's not unprecedented for the NHL to take such a hands-on approach to assisting a team through troubled times. The situation in Phoenix has been likened to the situation in Ottawa a number of years ago, when Rod Bryden was trying to sell the financially troubled Senators.

    The league was instrumental in assuring a seamless transition to the current owner, pharmaceutical businessman Eugene Melnyk, and the Senators continue to be a successful franchise.

    The league also played a major role in bringing together the sides in the Pittsburgh arena situation, when two years ago it looked as if the Penguins would move out of Pittsburgh, with Kansas City as the most likely destination.

    Although the team's financial future seems doom and gloom, there are actually a number of positive elements.


    First, ticket sales have increased about 77,000 from a year ago, team officials said. Television ratings have improved dramatically and if the team continues its strong play and can make the playoffs and take advantage of a few home dates (they were in seventh place in the Western Conference as of Tuesday), the bottom line will be significantly improved.

    The team is not saddled with onerous, long-term, big-value contracts, and the Coyotes have put together an impressive lineup of high-end young players such as Mikkel Boedker, Martin Hanzal and Peter Mueller.


    The Coyotes are one of the biggest benefactors of the NHL's revenue-sharing program as well, and last year received $15 million, something that should also be attractive to potential investors.
    The NHL has approached head coach Wayne Gretzky about the potential changes to the ownership group and he has assured league officials he isn't going anywhere (he told ESPN.com the same thing last week). That's not insignificant when it comes to luring deep pockets to the desert.

    Gretzky remains one of the pre-eminent names in pro sports, and knowing he's on board with the improving Coyotes, even if there is another ownership change, is a huge selling point, sources told ESPN.com.

    Although it's assumed Moyes is beating his own financial bushes looking for help, the NHL has also gone back to its list of potential buyers and is or has approached them about their interest in the Coyotes.

    Hollywood movie and television mogul Jerry Bruckheimer, long thought to covet an NHL franchise, has been linked to the Coyotes.

    Because the primary goal of Moyes and the NHL is to keep the Coyotes in Phoenix, BlackBerry inventor Jim Balsillie would be ruled out, at least for the time being. His interest in NHL ownership generally has been limited to teams he might at some point be relocated to Ontario.

    It's not believed a breakthrough, either in terms of significant investor relief or an ownership takeover, is imminent, although that could change in a short period of time.
    I never lie because I don't fear anyone. You only lie when you're afraid - John Gotti

  • #2
    k - just to clue everyone in on this whole history, the Jets moved from Winnipeg due to escalating player salaries and thus ownership could not afford the team and thus wanted to sell. Eventually the team was moved to PHX. NO MORE THAN 12 YRS LATER the team is in fiancial danger again!? Starting to wonder if ANYONE knows how to run a franchise?

    Stating it right here right now, this team moves to a new location in the states, I'm out!

    I'm out of this franchise and will seriously consider giving up Hockey as a whole!!
    Muscular Development Forum Rules :.

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    • #3
      Originally posted by UkrainianGuy View Post
      k - just to clue everyone in on this whole history, the Jets moved from Winnipeg due to escalating player salaries and thus ownership could not afford the team and thus wanted to sell. Eventually the team was moved to PHX. NO MORE THAN 12 YRS LATER the team is in fiancial danger again!? Starting to wonder if ANYONE knows how to run a franchise?

      Stating it right here right now, this team moves to a new location in the states, I'm out!

      I'm out of this franchise and will seriously consider giving up Hockey as a whole!!
      Where could they move it to? Hartford?
      It would be foolish not to go back to Winnipeg.
      Its impossible for a guy of my stature intelligence and moral fibre to befriend a guy like orstki who is a slimey rodent like person

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      • #4
        Originally posted by kraken View Post
        Where could they move it to? Hartford?
        It would be foolish not to go back to Winnipeg.
        Here. The Carrier Dome holds 50,000.
        I never lie because I don't fear anyone. You only lie when you're afraid - John Gotti

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        • #5
          seriously ALL the current CANADIAN teams have high attendances. I would bet my life any location they chose for a CANADIAN franchise would do better than Columbus, Nashville, PHX and Florida.
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          • #6
            Originally posted by UkrainianGuy View Post
            seriously ALL the current CANADIAN teams have high attendances. I would bet my life any location they chose for a CANADIAN franchise would do better than Columbus, Nashville, PHX and Florida.
            Truth.
            Its impossible for a guy of my stature intelligence and moral fibre to befriend a guy like orstki who is a slimey rodent like person

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            • #7
              Move them back to Canada!!!!
              Speed Kills, Strength Punishes

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              • #8
                ooooooooooooooot cat is out of the bag now....


                REPORT: COYOTES RECEIVING FINANCIAL ASSISTANCE FROM NHL


                The Phoenix Coyotes are faring well on the ice but off the ice, it appears to be a different story.

                According to The Globe and Mail, the Coyotes are receiving financial assistance from the National Hockey League to keep the team afloat. The report indicates the team is receiving advances on their share of league revenue.

                While NHL deputy commissioner Bill Dayl would neither confirm nor deny the Coyotes were being assisted, he did tell The Globe and Mail via e-mail that ''advances on league distributions are not unusual.''

                Financial documents obtained by The Globe and Mail show the Coyotes have pledged the franchise and all its assets as collateral for loans from a New York company.

                A source told The Globe and Mail the Coyotes have already talked to the city of Glendale about renegotiating their 30-year lease at Jobing.com Arena. Under the current agreement, only a declaration of bankruptcy would allow the Coyotes to break the lease and relocate the team.

                Owner Jerry Moyes is expected to lose more than $30 million this season and has reportedly lost up to $200 million since he purchased the franchise for $120 million seven years ago.








                responses already flooding the site..... here are a few


                paulodg1 Okay the jokes over, give Winnipeg back their team

                Uhhh...Hello...up here...yes it's Canada wavin

                dml1 They signed a huge, bad deal for that new arena.

                logandaw Any city in Canada would support this team!

                farleybe Should have stayed in the Peg!!!!

                2134 Imagine that the Yotes head back to Winnipeg

                trevormc Yeppers. Give our team back.

                ezc_19 The owner was dumb to put a hockey team in Phoenix

                sanislo Winnipeg > Phoenix > Hamilton

                jeffroy Where was this assistance when the Jets were in Wpg

                vadermau I'm in total agreement. Give Winnepeg their team

                quebers Quebec city should get a team before the 'peg

                bowlerdu back to Winnipeg!
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                • #9
                  The NHL def needs to move them back up to Canada, who the hell in Phoenix watches hockey anyways?
                  Speed Kills, Strength Punishes

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                  • #10
                    The Phoenix Coyotes may prove to be the story of the second half of the NHL season. For all the wrong reasons. As of yesterday, the surprising Desert Dogs were holding down seventh spot in the Western Conference, a tribute to their improving young players and the underrated coaching of Wayne Gretzky. But they are also, it's believed, not only a house of cards about to fall, but a house of cards on fire. The Coyotes are laying off employees, taking advance monies from the league, keeping NHL headquarters advised of any and all economic-related moves and generally staying one step ahead of bankruptcy protection. Too bad, because the team on the ice is well worth watching, particularly kids like Peter Mueller, Kyle Turris and Mikkel Boedker. If Gretzky can guide this team into the post-season, his name might yet factor into Steve Yzerman's decision-making process for the Vancouver Olympics. Sadly, however, the club is up to its neck in debt and trying to operate in a U.S. state hit hard by the mortgage crisis. No NHL team has failed in 30 years, and you can bet Gary Bettman doesn't want it happening on his watch. Then again, the NHL lost an entire season with Bettman at the helm, so everything's on the table. Still, there's lot of on-ice happenings to watch in the second half, including the run-up to the March trade deadline. With Minnesota forward Marian Gaborik gone for the season, Maple Leafs forward Nik Antropov may emerge as the most coveted attacker available.

                    Toronto Star
                    I never lie because I don't fear anyone. You only lie when you're afraid - John Gotti

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                    • #11
                      so i guess moving a franchise is not considered a failure, cause it didnt fold? I'm sorry in my book, moving a franchise is a failure!!! And at Betman's helm Hartford, Quebec, Winnipeg and Minnesota teams moved. Just because they didnt FOLD doesnt mean there is any amount of success.

                      Mind as well say, well i wrote off the car but at least i got home!
                      Muscular Development Forum Rules :.

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                      • #12
                        Originally posted by UkrainianGuy View Post
                        so i guess moving a franchise is not considered a failure, cause it didnt fold? I'm sorry in my book, moving a franchise is a failure!!! And at Betman's helm Hartford, Quebec, Winnipeg and Minnesota teams moved. Just because they didnt FOLD doesnt mean there is any amount of success.

                        Mind as well say, well i wrote off the car but at least i got home!
                        Bettman doesnt get it. He is the worst commissioner imo.
                        I never lie because I don't fear anyone. You only lie when you're afraid - John Gotti

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                        • #13
                          GRETZKY ADMITS COYOTES ARE IN FINANCIAL TROUBLE

                          Phoenix Coyotes head coach Wayne Gretzky confirmed to the Globe and Mail Thursday that the troubled NHL franchise requires financial assistance and is seeking an investor who could help keep the team in Arizona.

                          ''I don't think it is any big secret that Mr. Moyes has asked for new partners or investors,'' Gretzky told the newspaper, referring to team owner Jerry Moyes' desire to find new investors for the club. ''Mr. Moyes is doing the best he can in working with the city and city officials. Our responsibility is to come, show up and play, and play the best we can.''
                          The Coyotes could lose as much as US$45-million this season the Globe reported, and Moyes is speaking to city officials in Glendale about the lease arrangement at Jobing.com Arena.

                          Earlier this week, ESPN.com's Scott Burnside reported that the Coyotes were penalized 25% of their portion of the revenue-sharing pot last season, a program to help smaller market teams compete with bigger market teams. Teams can only collect their share of the revenue-sharing money if they attain certain revenue and attendance targets. According to Burnside, the Coyotes were unable to hit those targets and didn't collect last season.
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                          • #14
                            Wayne Gretzky said that he has had introductory conversations with some potential Coyotes investors. When asked if there was serious money involved, he responded, "Absolutely . . . I believe it's gonna be fine." The Coyotes managing partner and coach said that like with any business in corporate America, times are tough. He said, however, that it is not a players' problem or concern, and it is not a topic in the locker room. He called owner Jerry Moyes "a wonderful man" who is looking for partnerships and investors while staying in constant contact with the city of Glendale.

                            Arizona Republic
                            I never lie because I don't fear anyone. You only lie when you're afraid - John Gotti

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                            • #15
                              GLENDALE, Arizona (AP) -- Jeff Shumway resigned as chairman and CEO of the financially troubled Phoenix Coyotes on Friday.

                              Shumway had served as CEO of the Coyotes since April 2006. He was relinquishing his duties with the NHL team to manage other business ventures of team owner Jerry Moyes.

                              "Jeff has done a great job in managing the team for me but right now I need him to focus on some of my other projects," Moyes said in a statement.

                              The 51-year-old Shumway's resignation removes an upper layer of management for the team coached by Wayne Gretzky. Moyes will take over as the Coyotes' governor on the NHL Board of Governors, and president Doug Moss and general manager Don Maloney will report directly to Moyes.

                              Moyes has been seeking buyers for the Coyotes, who are reportedly losing more than $30 million (euro23 million) per year. With the NHL's help, they are attempting to renegotiate their Jobing.com Arena lease with the city of Glendale in an apparent effort to make the deal more attractive to potential buyers.

                              The Coyotes enter the All-Star break in fifth place in the Western Conference. If the playoffs started this week, they would qualify for the first time since 2002.
                              I never lie because I don't fear anyone. You only lie when you're afraid - John Gotti

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