Glendale votes to continue supplementing the Coyotes ((UPDATED Involving Atlanta))))

Phoenix Coyote/File

You know, we are really glad that we don't live in Glendale, Arizona. It may be the dumbest city in America.

We reported on Monday that the city was prepared to approve another $25 million to guarantee they'll find an owner for their wayward NHL team, the Phoenix Coyotes. On Tuesday night, that's exactly what they did.

You can read about the details from AZCentral.com RIGHT HERE

After doing some research, we have a better idea why they've pretty much sold out the entire city in the pursuit of an owner. It doesn't make it right, but we understand it.

The City Council boxed themselves in. They have to continue this bizarro game. They set the stage for this when (a) They built the arena and (b) When they built the surrounding entertainment district that is supposed to be funding said arena by a special tax on visitors. They can't raise the money to pay for the arena if they have no visitors, if they don't have a team, they don't have visitors. Still, it doesn't make it right.

Politicians do really stupid things sometimes without thinking of the long-term repercussions. This is a "Textbook" case of that.

The city also continues their pursuit of an owner by trying to woo and charm Chicago businessman Matthew Hulsizer, essentially offering to fund part of his purchase. Hulsizer's bid is in the process of changing as one of his minority investors, Ice Edge holdings got tired of this game and bailed out.

Really, this story has several meanings. One, the Coyotes are staying in Phoenix until somebody buys them. Two, the Atlanta Thrashers are probably moving, as soon as True North holdings can buy them. Three, the taxpayers of Glendale are screwed no matter what happens. And they can thank their local politicians for that.

And the beat goes on.

Here's coverage from our friends at KTVK/AZ3


PM UPDATED: Sources close to the Coyotes are telling OSG Sports that a group interested in purchasing the Coyotes at some point in time over the last two seasons has made an overture toward the Thrashers already...

Bill Daly, in an interview after the Glendale meeting, mentioned that the National Hockey League may approach an Arizona court about clarifying that the sale to Hulsizer does not violate the state Constitution. The league would ask for a declaration from the court to wave in front of Goldwater's nose...

More when we know more...

DEVELOPING: Ice Edge Pulling Away From Hulsizer

((HT: Arizona Republic/Sanders))

With the vote by the City of Glendale coming tonight for paying the NHL another US$25M to keep the Coyotes from moving, an interesting bit of news comes from Sanders article this afternoon.

On the eve of the vote, Ice Edge Holdings- the former owner-wannabe-then-minority partner- has pulled their interest from the Hulsizer group saying that they just want to move on...

From Sanders:

"It was purely a decision based on the fact we have been involved with this for two years," ((lead Ice Edge head Anthony LeBlanc)) said. "We just didn't feel comfortable spending any additional time on it."

Ice Edge is now focusing on bringing minor league hockey back to Thunder Bay, Ontario as LeBlanc also plans a run for parliament in his home riding.

Matthew Hulsizer's response was that he could replace Ice Edge's investment and their loss won't affect his group.

More when we know more...

New Player Emerges For Coyotes, Ice Edge Out...?

((HT: Phoenix Business Journal/Sunnucks via Howard Bloom))

A "mystery buyer" has stepped up to pick up the Phoenix Coyotes...

Details of the new ownership group are very limited ((thus, the "mystery" in "mystery buyer," right...?)), but some kind of announcement could be forthcoming fairly soon.

((Insert positive-sounding cliche here...))

The ownership group has asked for the city and league to keep negotiations private. The new buyer would keep the Coyotes in Glendale... for now, anyway...

Ice Edge Holdings LLC, the original front runner, is no longer that and seem to be more interested in bringing an ECHL franchise to Thunder Bay, Ontario. The ECHL franchise has been part of their plan all along- Coyotes inclusion or not.

Ice Edge CEO Keith McCullough said Monday that Ice Edge could still have "some" involvement with the Coyotes- whatever that means...

From Sunnucks:

“We understand another party that we have become acquainted with is in advanced negotiations with Glendale and an announcement could happen soon. If this occurs, we expect to continue to be involved with the Coyotes as an adviser for the foreseeable future,” McCullough said.

The mystery buyer is not Jerry Reinsdorf, and the City of Glendale is ((as always)) not commenting...

The NHL has set an end of the year deadline for the Coyotes to be sold to new owners who would keep the team in Glendale. If that deadline passes, the NHL would look for the True North group to step up and spirit the franchise to, probably, Winnipeg once and for all...

More when we know more...

Glendale Looking Around Again...?

Multiple outlets are reporting that the City of Glendale and Ice Edge Holdings, the Canadian-American business group given the okey-dokey to buy the Phoenix Coyotes from the National Hockey League, haven't swapped the proper documentation to assuage the city's fears on their financing.

Oh, "assuage?" Look it up...

James Mirtle, from the Globe and Mail, had this in a recent article...

"One source told me last week that Ice Edge's bid had been "dead" for weeks and that commissioner Gary Bettman has brought Reinsdorf – long the NHL's choice in this mess – back into the mix."

Remember, Reinsdorf's bid was the other one shot down. He wanted his bid heavily leveraged with city help with an outclause. Ice Edge's has been traditionally shaky. Word has constantly been that once Ice Edge got the bid, then the financing would materialize.

Apparently, it hasn't... at least to city of Glendale satisfaction...

John Shannon of Rogers Sportsnet, relayed the following in a recent article...
"...a City representative did say they stood by comments made last week that Ice Edge was having difficulty proving they had enough financial backing to purchase the club.

On a related topic, another source close to the team said that only 1,800 season tickets have been sold for the 2010-11 season. A disappointing number considering the team's on-ice performance last season."

Rebekah Sanders, from the Arizona Republic, caught up with new team president Mike Nealy on the issue:"There are others out there that are viable... but they like to stay quieter."

Looks like Ice Edge is in trouble... again...

1,800 season tickets...???
Yikes... Coyotes spokesperson Sergey Kocharov disputed the number to Sanders...

But all this dies lend itself to the question... again...

With the Goldwater Instititute hanging over the City of Glendale government, is thee city still going to chase after the idea of biting that $25-million price tag for the one year, or succumb to Reinsdorf after all...???

The HQ's money is still on heading to Winnipeg with True North, who has been their normally-silent selves in all of this...

More when we know more...