Has Scruggs Had Enough...??? Are The Coyotes Really Done...???

((HT: KPNX-TV Phoenix))

Since Matthew Hulsizer pulled out of the latest deal to buy the Phoenix Coyotes, the team that calls Glendale home is now on the clock...

And, yes, we know people in Atlanta are now kicking themselves over this one...

But now with the NHL and Glendale pointing fingers over who caused the Hulsizer exit, Glendale Mayor Elaine Scruggs either sees the writing or is trying to court Jerry Reinsdorf one last time before she has to figure out whether out another US$25-million can come from city coffers...

Kevin Kennedy got a sitdown with the mayor...


So, the larger question is: Where do they go since Winnipeg is out of play...? Quebec City...??? Kansas City...??? The options are slim and he's heading out of town...

DEVELOPING: Glendale May Buy More Time From Bettman...

((HT: Arizona Republic, Sanders))

Rebekah Sanders has been front and center to all of this Coyotes-will-they-or-won't-they move stuff...

The new revelation from her digging is that the City of Glendale may buy more time from the NHL to either settle, or not settle, their reworked deal among themselves, Matthew Hulsizer, and the Goldwater Institute.

There is no idea at present how much more time US$25-million will buy from the National Hockey League, but we'll know more after the Tuesday vote at the new City of Glendale council meeting...

Maybe one more year...

2315 UPDATE: In a conversation with TSN's Dave Naylor released through his Twitter feed, Glendale City Councilman Phil Leiberman thinks: "I think it may pass 7-0 or 6-1. All of us want to buy more time."

Actually, not ALL of you...

Also, Puck Daddy has the versions of truth from the Phoenix Business Journal and the Winnipeg Sun...

Mike Sunnucks from the PBJ has a quote from Bill Daly...

“As we have for the past two-plus years, we have been working very closely with the city of Glendale to do everything possible to ensure the Coyotes’ future in Glendale. At the city’s request, we have agreed to pursue another one-year interim arrangement while we jointly pursue a long-term ownership solution. We remain confident that one exists, and we intend to continue to pursue it.”

And the Winnipeg Sun piece from Paul Friesen surmises that Hulsizer wouldn't have been interested in closing the deal this year, anyway, because he wouldn't have been a party to the revenue sharing at the league level or his arena payment for managing jobing.com arena...

Forbes.com's Mike Ozanian was reporting Hulsizer was shifting his gaze to the St. Louis Blues, but his Peak6 partners are denying that move in quotes with the Globe and Mail's Eric Duhatschek.

More when we know more...

Another Glendale-Coyotes Vote Tuesday...???

((HT: Arizona Republic, Sanders))

That's a possibility since the City of Glendale thinks its deal with Matthew Hulsizer has advanced from the stage of floating over US$116-million in bonds to, about, half that in a reworked version of the deal...

Tuesday would be the earliest time for a new version of the vote and an approval of the shaky-at-best financing.

There are two roadblocks if the proposal heads to a Tuesday reconsideration...

1) The Goldwater Institute, in all likelihood, would still pursue a lawsuit against the City of Glendale if there's any kind of bond financing and,
2) Moody's, the outfit that gives bond ratings, withdrew their rating. The bonds would have to go back on the market for the company to give any kind of designation.

None of the current bonds have sold...

The agenda for Tuesday should be disclosed some time Friday in Glendale...
More when we know more...

The Bettman Talks Phoenix Coyotes, Goldwater Not Moving

((HT: Sportsnet Radio FAN 590 Toronto via Howard Bloom, Globe and Mail/Shoalts))

The Bettman was on Sportsnet Radio's "HockeyCentral" to discuss the Coyotes and the new television deal...

He's obviously half-happy right now, and had plenty to say in the 8-and-a-half minutes he was on the air. One of his salvos was at the Goldwater Institute:

"If the deal collapses, they may never have to prove they were right, unless somebody sues them for some sort of interference notion. But that's what caused the deal to go sideways. What the City of Glendale has been doing, with our help and with Matt Hulsizer, is trying to figure out another way to do this where it doesn't involve having to sell the bonds in a way that the Goldwater Institute can interfere."

One of David Shoalts main points was in his talks with governors of NHL teams- both past and present. The moving of the Atlanta Thrashers is less hated than the Coyotes since, apparently, they don't want to lose Phoenix as a hockey market.

Even if Atlanta is ten sizes larger in Neilsen numbers...

Also, if the Thrashers move, it could be a straight-up trade for Nashville or Columbus to switch conferences to create natural rivalries. The HQ's money would be on Nashville to be paired with Tampa, Raleigh, Florida, and Washington. It would also help the Predators since they're not one of the more free-spending organizations in the league.

Here's the interview in full...

Here's the latest interview with Darcy Olsen of the Goldwater Institute to update all of us on the deal...
((HT: AZPBS))

Glendale Still Blaming Goldwater

Glendale Mayor Elaine Scruggs is accusing Goldwater Institute of "significantly hindering" completion of the sale of the Phoenix Coyotes to Matthew Hulsizer.

Again...

Scruggs made the accusation at a news conference saying the city has provided the institute with thousands of pages of documents- 400 pages of stuff since last week.

Here's a podcast of her presser where she didn't take any questions...

Again... interesting that it was posted on the Coyotes website...

Scruggs is also hot over the idea that Goldwater is telling any bond-rating agencies that the city's agreement on a new lease for the Coyotes violates the Arizona constitution, and to stay as far away from it as possible.

In response, the Goldwater Institute referred to an Op-Ed piece in Thursday's Arizona Republic by institute president Darcy Olsen saying it would be wrong to give Glendale "a free pass" to break state law.

From Olsen's Op-Ed:
According to Moody's, the credit-rating agency, Glendale's mounting debt already is triple the national median for cities of its size.

Is it any wonder that Moody's downgraded Glendale's debt when it caught wind of the city's plan to issue another $116 million in bonds? Moody's said the "municipal market faces credit pressure not seen since the Great Depression." I suppose Moody's should back off, too.

Here's an interview TSN's Geno Reda had with Winnipeg Free Press Writer Gary Lawless on the latest salvo in she said-they said from Reda's "That's Hockey"...
((HT: TSN/youtube))


Remember, Goldwater is also exposing the review of the bond benefits by TL Hocking on jobing.com arena as a shenanigan since the publicly-funded arena that hosts the CHL's Arizona Sundogs is turning out not to meet financial expectations, either.

Hocking wrote that report...

Goldwater Waiting To Sue Glendale

But waiting not too long, and really surprising no one when this goes down...

David Shoalts, in his piece for the Globe and Mail, caught up with Arizona watchdog Carrie Ann Sitren to get her impression of the deal that the City of Glendale has with the National Hockey League at present...

"By delegating the power and responsibility of [council] to the city manager, the city has violated the law,” Sitren told Shoalts.

In the City Council meeting, mayor Elaine Scruggs gave city manager Ed Beasley the go-ahead to work out the agreement with the National Hockey League to backup any Phoenix Coyotes losses- up to US$25-million.

Sitren and the Goldwater Institute are waiting until the minutes of the meeting from Tuesday are officially published, but this is really a fait accompli...

“The city gave away all its power and responsibility to the city manager to come up with a deal," she added. "That does not fly under the laws here.”

KPNX-TV/News12's Andy Harvey got to do the standard after-the-fact fan reaction piece
Naturally, Harvey was able to find people from both sides of the argument to fit into his 1:30 time frame...
((HT: News12/azcentral.com))

Glendale Votes Unanimously For Covering NHL Losses

After about an hour and a half of debate, the City of Glendale unanimously approved the idea of City Manager Ed Beasley to continue negotiations with prospective suitors and to cover the National Hockey League's losses up to, roughly, US$25-million for a "one-time only" act to keep the Phoenix Coyotes in the town of Glendale ((pictured very pleased, thanks NHLI/Getty))

If an owner is found, other than the NHL, the requirement goes away from the table. According to Beasley, the passing of Resolution 4377 "assures operation of the Jobing.com Arena" and will be used as a "funding mechanism." Beasley also admitted that the City of Glendale is negotiating with two parties and that "nothing has changed." Beasley also said in the meeting that "everything is right on track" to have everything done by the end of June.

Jim Colson, Deputy City Manger for Glendale, referred to the Resolution as an "insurance policy for the city."

Glendale Mayor Elaine Scruggs, in a discussion with the City's Craig Tindal, asked about the formation and dissolution of the proposed tax district. Mayor Scruggs asked what would happen if the NHL went in a different direction:

"The CFD would serve no purpose, and the board can terminate it at any time..."

But Tindal also said that it would take up to four months to form the district- which would put it ((at earliest)) in use by September. But Tindal indicated the time frame would be "shorter if everything lines up..."

The NHL's Bill Daly addressed the council and admitted that the league wants to keep the team in Glendale: "We are committed to that objective."

Daly also said that the league remains confident that matters can be taken care of on an "expedited basis." In an interview with KPNX-TV/News12's Brahm Resnik after the meeting, Daly said he expects a deal done by June 30 and that the team will not be moving.

Here's Scott Oake's tete-a-tete with Gary Bettman during the Vancouver-Chicago game last night...
((HT: CBC/NHL/fiXxed98))


The HQ's Dime Store Analysis:
While Committee Member Joyce Clark ((Yucca District)) said in session that no taxpayer dollars will be used for this CFD and apparent covering of the Coyotes losses for 2011, there are still too many questions here...

1) How long will it take for the Goldwater Institute to serve the City of Glendale with papers...?

2) If Reinsdorf doesn't sweeten his bid with some actually cash...? Then what...?

3) If Ice Edge never gets anymore cash, then what...?

At the least, as of right now the Phoenix Coyotes are in Glendale for one more year... and we'll go through this all over again next summer at the latest...

Glendale City Council Won't Hear Moyes In Public

((HT: Arizona Republic/Sanders))

Coyotes owner Jerry Moyes made an emotional plea to the Glendale City Council on Tuesday to speak in support of Canadian billionaire Jim Balsillie's offer for the team.

But Mayor Elaine Scruggs and city staff told the fallen-from-grace Glendale resident he could not talk and must leave.

A half-hour later, council members emerged from behind closed doors refusing to alter their backing of a competing offer from the NHL.

Balsillie had announced in U.S. Bankruptcy Court last week that he would hand Glendale a $50 million check as compensation if he is allowed to relocate the Coyotes to Hamilton, Ontario. The bankruptcy judge asked Glendale officials to evaluate the proposal by Thursday.

Previously, Balsillie had offered the city $50 million minus a relocation fee due to the NHL and operating costs while the team prepared to leave. Balsillie's new offer would exclude the potentially multimillion-dollar relocation fee, amounting to much more for Glendale but far less than the city owes on Jobing.com Arena.

The city has argued that the economic damage of losing the arena's anchor tenant could be as much as $500 million.

Deputy City Manager Art Lynch said council members continue to favor the NHL's offer. It allows one year to find a buyer willing to keep the Coyotes in Glendale. After that time, the league could sell the team to a buyer in another city.

"Owners have been found in the past, and I believe owners will be found in the future," Lynch said.

The council was meeting publicly on routine matters when Moyes rose and addressed the mayor in a shaky voice. He got no further than her name.

Moyes said he had asked to be added to the council agenda but staff told him he was not scheduled and could not speak.

"I wish they would have listened to me," he said outside the council chambers, where officials had promptly convened privately on the Coyotes.

"The city of Glendale would be better off without hockey," Moyes said, suggesting concerts and events staged at the arena would bring the city more cash. "This team is going to be gone in a year."

Those of us at OSG HQ agree with Moyes and, now, Commissioner Bettman who are locked in to that point of view...

Apparently, Mayor Scruggs still has her fingers shoved in her ears and is stomping up and down like a petulent child waiting for the right answer.

Not happening... take the money and go with it...

Even The Bidwills Are Against The Reinsdorf Plan

((HT: 12 News Phoenix/Brahm Resnik))

The Arizona Cardinals are firing shots at a bailout plan for the bankrupt Phoenix Coyotes that could force Cards fans to pitch in with tax dollars.

"I've heard from quite a few fans that have told me, 'Why would they do that on the backs of Cardinals' fans to finance the hockey problem?'" CEO Michael Bidwill told 12 News Flagstaff.

A potential Coyotes buyer group led by Jerry Reinsdorf, owner of the Chicago White Sox and Chicago Bulls, says the hockey team won't survive unless the group gets up to $23 million a year in revenue from the Coyotes' arena lease with the City of Glendale, according to new court filings.

One of the potential cash-generators proposed by Reinsdorf: a special taxing district including Jobing.com Arena, Westgate City Center and the unbuilt Main Street development. The taxing district would assess "voluntary surcharges" of up to 11.5 percent on sales. It's not clear how "volunteers" would be found.

Westgate is across the street from the Cardinals' University of Phoenix Stadium, and is a popular pre- and post-game destination.

"It's a bad idea, we're not for it," Bidwill said.

Information on the Reinsdorf plan is contained in a document that was filed Friday by attorneys for Coyotes owner Jerry Moyes, but was later pulled back because attorneys said it was confidential.

The document indicates Glendale officials have not agreed to the concessions proposal.

But the filing does give the first glimpse of the dollar value of lease concessions being discussed by the city.

The city has fought a lawsuit filed by the Goldwater Institute seeking documents that would shed light on negotiations. Goldwater has threatened to sue the city if it hands out tax dollars to a buyer.

The document also underlines what several experts have said in court: the money-losing Coyotes are a very tough sell.

Court documents show the Reinsdorf group, the NHL's apparent favorite to buy the team, has not lined up any financing for a purchase. And the dollar value of the bailout plan suggests his group has little intention of putting much money down.

Other elements of the Reinsdorf group's concessions plan:
• The taxing district would yield an estimated $23 million in payments the first year, and $15 million by the fifth year, in 2014. The court filing says those payments could continue after 2014.
• If the team was losing money after five years, the Reinsdorf group could demand an additional $15 million a year from the city.
• If the city refused, the Reinsdorf group could sell the Coyoyes and move them, without paying a penalty.

Back in mid-July, when reports of Reinsdorf's desire for $15 million a year in concessions surfaced, Glendale Mayor Elaine Scruggs told 12 News: "That's far beyond anything we would be willing to do regardless of our means."

City officials could not be reached for comment Sunday.

All this comes as the court-ordered auction of the Coyotes scheduled for Wednesday has run off the rails.

At an emergency hearing Monday afternoon, the National Hockey League and the City of Glendale will ask Bankruptcy Judge Redfield T. Baum to delay the auction until mid- to late-September.

The city and league argue, in part, that there has not been enough time for potential bidders to negotiate with the city or large creditors. Court documents show the Reinsdorf group has been talking to Glendale for at least six months.

But attorneys for Moyes and the Coyotes respond that the Reinsdorf group and a Canadian-led group that also wants to keep the team here have failed to qualify as bidders under court rules.
They want to move now to an open auction that could allow the re-entry of Blackberry billionaire Jim Balsillie, who wants to move the team to Hamilton.

The most significant player Monday is a name known largely to insiders: MSD Capital, the investment arm of Dell computer founder Michael Dell.

Bankruptcy court is all about putting money back in the hands of creditors, so creditors have the most clout. MSD is the Coyotes' largest secured creditor -- owed more than $80 million. On Friday, MSD's attorneys spoke for the first time, in a court filing.

MSD agrees none of the bidders has qualified under court rules. It is open to a Balsillie bid, which promises MSD the most cash upfront. And MSD is willing to give the potential bidders more time -- but it wants the auction held no later than Sept. 10.

Here's Resnik's package on the delay of the auction...thanks to our friends at News 12...

Glendale Quietly Helping Coyotes

((HT: Arizona Republic))

Just when you thought the Phoenix Coyotes ((Jobing.com arena pictured, thanks Michael Schennum/Arizona Republic)) situation couldn't get any more odd, the Republic and Brahm Resnik of KPNX-TV 12 let us know that the city of Glendale their own selves has been letting the team play, for all intents and purposes, rent free for the last seven months. The value of the non-payment adds up to US$4-million.

"They're using that money for their operating money when it should have been paid to the City of Glendale," said Councilman Phil Lieberman.

Council members who were informed of the bailout by 12 News said it was news to them.

"Absolutely I should have been told," said Lieberman, a member of the city council for 17 years. Joyce Clark, who represents the district that's home to the Coyotes, also said she was never informed.

Glendale spokeswoman Julie Frisoni declined to make City Manager Ed Beasley available for an interview, citing policy not to discuss ongoing negotiations.

She did say there was no need to notify council members because the break on the lease was part of a change to an agreement, not an entirely new agreement the council would have to vote on.

"That whole arena was structured on certain revenues coming in," Mayor Elaine Scruggs, a longtime friend of team owner Jerry Moyes, said last month. "And we need to retain the ability to meet our debt payments."

The Coyotes have not delivered the lease revenue. For example, the lease requires the team to pay an arena parking fee to Glendale of $2.85 per ticket sold. That parking fee makes up almost half of the team's $16.8 million in lease payments since 2003 -- $7.75 million to date. But that's $10 million short of the $17.8 million in parking fee revenue the Coyotes were projected to deliver.

Meantime, the bond rating agency Moody's has raised concerns about Glendale's ability to service its mounting debt, after the city borrowed $200 million to build the new spring training complex for the Los Angeles Dodgers and Chicago White Sox. Moody's cited continued declines in sales tax revenue.