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...

Ice Edge Rehash: Saskatoon Will Work

((HT: GlobeSports/Shoalts, Waldie))

Ice Edge Holdings thinks that by cutting their bottom line by US$15-million, adding that amount in revenue by playing in Saskatoon five times a year, and purchasing an American Hockey League franchise that they can turn the Phoenix Coyotes around financially in five years...

Stop the HQ if you've heard this one before...

They also want to help pay for and build a new 5,500 seat arena in Thunder Bay, Ontario and move the San Antonio Rampage as part of that AHL part of our first paragraph...

They think that new revenue will come from parking fees, better management of the arena and the Saskatoon games. Cost cutting will come from improved office lease arrangements, some staff cuts and the elimination of Wayne Gretzky’s $6-million annual salary as coach.

Ice Edge has already worked out a new lease agreement with the city of Glendale, Arizona and the jobing.com arena.

Daryl Jones and Keith McCullough got to say their peace on "Prime Time Sports" Wednesday with Bob McCown on the Fan Radio Network...

The Shoalts article details the continued hemorrhaging of funds on the Coyotes books. The team lost US$5-million in the month of October alone. They lost US$50-million last season, and are on pace to top that this year...

Good work...

The HQ is tired of all the legal pie-in-the-sky thinking that The Bettman has put forth all this time. We've long maintained that Canada will support NHL franchises better than a lot of current US markets, but the man in charge doesn't want to hear it.

Disappointing that the only act the league can allow is dipping the toe in the water... and seeing if five dates are better than 41...

Which, last time we checked, it ain't...
Here's your last action from the Desert Dogs- a win over the Maple Leafs...
Everyone seems to be doing that these days...
((HT: FS Arizona/NHL))

More Groups Line Up For Coyotes

((HT: TSN))

And the line starts in New York with the Bettman...

Current Toronto Argonauts co-owners Howard Sokolowski and David Cynamon ((pictured, thanks David Cheung/Globe and Mail)) plan to meet with Glendale city officials next week with an eye toward putting a bid together for the Coyotes.

Sokolowski and Cynamon were part of the Ice Edge Holdings group that pursued the club when owner Jerry Moyes filed for bankruptcy in the summer. But Cynamon confirmed to the Globe and Mail they are longer part of that group and sources tell the newspaper they have put together their own collection of about 12 investors.

They're also reportedly fed up with the idea of losing money over the Argonauts and not being warmly embraced on their revenue ideas for the future of the CFL itself.

The report indicates an Arizona bankruptcy court is expected to grant approval to the NHL's $140 million US bid to buy the Coyotes from Moyes on Monday, the same day Sokolowski is planning to meet with Glendale officials.

Should Sokolowski and Cynamon put together a bid, it would have to include a new lease for the Jobing.com arena in Glendale.

Keith McCullough of Ice Edge Holdings appeared on the Business New Network on Thursday and said their group is prepared to bid on the Coyotes as well.

Remember...??? The whole 5 games in Saskatoon thing...

Watch the McCullough interview here...the fun starts at the 6:30 mark
Thanks to our friends at the Business News Network...

None of this is really a surprise...those of us at OSG HQ figured everyone would wait until the bankruptcy process was concluded in court before jumping back in...

Ice Edge Weighs In As Reinsdorf Checks Out

((HT: TSN))

The NHL announced its bid filing a few hours before word came that the investors' group, known as Ice Edge Holdings, had met Tuesday's court-imposed deadline ((the Coyotes are pictured, thanks Rick Scuteri/Reuters)).

Ice Edge chairman Keith McCullough said in a news release that the plan was to "revitalize NHL hockey in Arizona and the southwestern United States."

"In the last eight weeks we have worked with the NHL, the city of Glendale and members of the Coyotes organization to develop a solid plan for the successful operation of the Coyotes in Phoenix," Ice Edge chief operating officer Daryl Jones said.

Ice Edge officials repeatedly mentioned working with Wayne Gretzky, the former hockey great who is the Coyotes coach and owns a small share of the team.

"The Phoenix Coyotes organization presents a number of great hockey and business opportunities," Ice Edge CEO Anthony LeBlanc said. "We will build on the team's brand, the Wayne Gretzky brand and a partnership with the city of Glendale to ensure that Arizona continues to enjoy the NHL for many years to come."

Ice Edge was a late arrival in the Coyotes case, but it said it filed a detailed bid that included "renegotiation of key debts and contracts, a revamped sales and marketing strategy and a more effective utilization and partnership with Wayne Gretzky."

Ice Edge, which earlier had indicated it would have the team play a few games in smaller Canadian cities, also said it had reached an agreement in principal on a repayment plan with the Coyotes' largest secured creditor, SOF Investments.

That last part is key... Ice Edge is now in line with SOF as well.

Even if Ice Edge, Reinsdorf, and the NHL weren't neccessarily going to pay Moyes a nickel, they're all on the same page. And that's key for the league to continue in the bid-blocking scheme they've hatched against Jim Balsillie.

Even if Ice Edge doesn't get the bid through bankruptcy proceedings, they could still be a player later for the Coyotes and/or other franchises...

Wayne Gretzky is still very quiet on all this- which means he'll get his from someone- the new owner, the league, or both.

Ice Edge's Bid For Coyotes Includes Canadian Games

((HT: GlobeSports/Waldie))

A group intending to bid $150-million (all currency U.S.) for the Phoenix Coyotes ((pictured, thanks Christian Petersen/Getty)) wants to bring five of the franchise's regular-season games to Saskatoon or Halifax.

The group, officially known as Ice Edge Holdings, has been in discussions with officials from Saskatoon and Halifax about playing five Coyotes' regular seasons games in either community. Ice Edge is leaning toward Saskatoon, although no firm deal is in place. If the National Hockey League approves the plan, the Coyotes would play “home games” in Saskatoon's 11,300- seat Credit Union Centre against the Montreal Canadiens, Calgary Flames, Edmonton Oilers, New Jersey Devils and Vancouver Canucks.

If the Coyotes make the playoffs, Ice Edge would hold some of those games in Saskatoon as well. It also plans to move the Coyotes' farm team, the San Antonio Rampage, from Texas to Thunder Bay.

“Canada is obviously a tremendous hockey market, yet there are currently 6,000 kilometres of Canadian soil that have no exposure to the NHL in their home market,” said Daryl Jones, an Ice Edge partner. “Our plan from the outset was to work with a Canadian city that doesn't have NHL territorial rights issues, and also one that wouldn't be considered a threat to the fans in Phoenix.”

“It's a great opportunity to bring regular season NHL hockey to a Canadian city that otherwise would never have the opportunity. It is a great way to ensure the team stays in Phoenix for the long run, but partners with a Canadian city in the process.”

Ice Edge officials will present the idea – dubbed the “grassroots Canadian hockey strategy” – to the NHL's executive board Wednesday in Chicago. The group has no plans to relocate the Coyotes and sees the Canadian games as a way of generating additional revenue so the club can stay in Phoenix.

“Ultimately this is a plan to revitalize NHL hockey in Arizona and the southwestern United States,” Mr. Jones said.

NHL deputy commissioner Bill Daly said the league is aware of the plan but it would “have to be considered and approved by the NHL board of governors.”

Ice Edge raised the idea with several other Canadian cities, including Winnipeg where the Coyotes once played as the Jets, but the discussions have gone the farthest with Saskatoon and Halifax. The group did not approach Hamilton or Toronto, both targeted by other groups interested in NHL franchises.

The Coyotes filed for Chapter 11 protection in May and an Arizona bankruptcy court will hold an auction for the club on Aug. 5. The auction is only for bidders interested in keeping the Coyotes in Phoenix.

If the court determines the bids are too low, another auction for those who want to relocate the team will be held Sept. 10.

Jim Balsillie, co-chief executive of Research In Motion, has offered $212.5-million to move the Coyotes to Hamilton. On Sunday, his spokesman Bill Walker said Balsillie's offer “is not just miles but time zones ahead” of other competing bids and “offers the best outcome for the franchise.”

So far only Jerry Reinsdorf, owner of the Chicago Bulls and White Sox, has submitted a formal bid for the Aug. 5 auction. His offer, worth up to $148-million, is conditional on a new arena lease and concessions from creditors.

Ice Edge has submitted only a letter of intent, but it hopes the bankruptcy court judge will take the proposal seriously and give the group time to finalize its offer for the August auction. The group has three main major financial backers, including Anthony LeBlanc, 39, a former RIM executive who lives in Ottawa.

LeBlanc was working on a deal to bring an Ontario Hockey League club to his hometown of Thunder Bay, but he decided to pursue the Coyotes after the club filed for court protection. He has been joined by Jones and Keith McCullough, who is also from Thunder Bay and runs an investment firm in New Haven, Conn., called Research Edge.

Jones, who hails from Alberta, also works at Research Edge and played hockey at Yale University with McCullough. Mr. LeBlanc is an Ottawa Senators' season ticket holder and he was introduced to NHL executives by Cyril Leeder, the Senators' chief operating officer.

The games in Canada are a key component of Ice Edge's proposal and it is unlikely the group will be able to pursue a bid if the NHL turns down the idea. Other features of Ice Edge's plan include offering Wayne Gretzky, the Coyotes' coach and co-owner, a long-term coaching contract and a major ownership stake.

Ice Edge is also considering opening a Gretzky's restaurant in the Jobing.com arena. Gretzky currently owns about one per cent of the Coyotes and he receives a share of profits and revenue from the club, according to documents filed in court.

Ice Edge officials have met with Mr. Gretzky to go over its plans. While no agreement has been reached, Gretzky is believed to be receptive to the ideas, including playing games in Saskatoon.

Reinsdorf's offer does not appear to include any role for Gretzky. According to documents filed in court Sunday, Gretzky's employment contract is not included in Reinsdorf's proposed purchase.

Another Coyotes' co-owner, Phoenix businessman John Breslow, has joined Ice Edge as an investor. Breslow runs the Coyotes charity and the NHL had indicated in a court filing that he was a potential bidder for the club. However, he recently agreed to join Ice Edge and continue working on the charity.

There is no guarantee Ice Edge's proposal will succeed even if the NHL approves the games in Canada. The group's plan hinges on a new lease agreement with the City of Glendale, the Phoenix suburb that funded construction of the Jobing.com arena and is a major Coyotes' creditor.

Ice Edge has had discussions with the city and it is hopeful a deal can be reached. The group is also still lining up financial backers and it recently held a meeting at the Magna Golf Club near Toronto for a dozen potential investors.

Ice Edge is convinced it can sort out the Coyotes' finances and break even within a couple of years. The club has never made money since moving from Winnipeg in 1996, according to court filings, and it lost $67.1-million last season.

Ice Edge plans to introduce a new ticketing system, cut costs, charge for parking and improve the Coyotes' marketing.

“In the last three weeks we have worked with the NHL, the City of Glendale and members of the Coyotes' organization and we are confident that the organization can thrive in Arizona,” Jones said.

Coyotes Bid Highlights

((HT: Arizona Republic/Watters))

Friday's bid deadline for the Coyotes included one bid and a near-bid.

A group of Canadian and American investors who came forward earlier this month with interest in the bankrupt franchise filed a letter of intent to bid up to $150 million, according to those close to the deal.

As expected, sports mogul Jerry Reinsdorf waded in with a bid worth up to $148 million.

NHL Deputy Commissioner Bill Daly said he was pleased to see that offers to purchase the team were filed with U.S. Bankruptcy Court.

"We look forward to continuing the review and approval process," he said

At stake is whether the Coyotes, who moved to the Valley in 1996, will remain at Jobing.com Arena in Glendale.

The city and league have spent three months battling to keep the team in place.

The court could decide neither bid satisfies creditors and launch a second auction Sept. 10 for buyers interested in relocating the team.

The judge will review bids at an auction Aug. 5.

Daryl Jones, leading the Canadian-American investment group, said they should have a detailed bid to the judge by that date.

The group missed the court's June 26 deadline to submit term sheets outlining offers and now Friday's bid deadline.

Jones said the missed deadlines are because the group began reviewing the team's finances just three weeks ago.

"As excited as we are about this, we can't make major decisions in this time frame," he said.

Friday's filing attempted to show the judge the group is serious, he said.

Judge Redfield T. Baum has made it clear he would seek the best possible deal, and if Bill Gates walked in with an offer he couldn't refuse, he wouldn't.

"The only person that can determine the viability of a bid is Judge Baum," said Steve Roman, a spokesman for team owner Jerry Moyes.

Bid highlights

• Reinsdorf group: Glendale Hockey LLC would include Reinsdorf, Valley attorney John Kaites and former sports executive Tony Tavares.

The group was negotiating to buy the team before Moyes filed put the team for bankruptcy May 5.

Their offer reportedly followed the term sheet submitted last month which included negotiating new agreements with secured creditors such as the NHL and an affiliate of computer entrepreneur Michael Dell's MSD Capital, as well as unsecured creditors such as arena vendors.

Not included in the bid is money for Moyes, who wants paid at least a portion of the $104 million in loans he says he made to the team.

Those loans are just a portion of the investment Moyes made during his eight-year stint with the club. He estimates losing more than $300 million.

• Jones group: Ice Edge Holdings LLC should include about six investors. Among them are Jones and Keith McCullough, both from Research Edge, a Connecticut-based firm.

Jones declined to name other investors, although he said at least one was from the Phoenix area. The group also wants to keep Coyotes coach and minority owner Wayne Gretzky.

Said Jones: "He's been underutilized, and we have some plans and ideas."

He said he's talked to Gretzky about maintaining his head-coaching spot as well as taking a larger ownership stake and involvement in operations.

"He hasn't agreed, but we hope he will be a partner," Jones said.

Now We Know Who The "Other Bidder" Is For The Coyotes...

((HT: GlobeSports/Waldie))

When Research In Motion co-chief executive Jim Balsillie offered to buy the Phoenix Coyotes and move the NHL team to Hamilton, Anthony LeBlanc was so excited he sent his old boss a letter of congratulations.

But soon Mr. LeBlanc, a former RIM executive, started looking more closely at the Coyotes together with a couple of hockey-loving friends from the investment world. Yesterday, Mr. LeBlanc and his group submitted a letter of intent, offering to buy the Coyotes for $150-million (U.S.) and keep the team in Phoenix.

“Southern Ontario can support another [NHL] team – there's absolutely no question, and I think Jim would be a tremendous owner,” Mr. LeBlanc said from his home in Ottawa. “It's just we don't think that Phoenix is the right team because we think there's a real savvy business case that can be had in Phoenix.”

Mr. LeBlanc said he loved his years at RIM and considers Mr. Balsillie a mentor and a good friend. But the Coyotes purchase “is one of those rare opportunities that come up that we're pretty excited about.”

His main partners are Keith McCullough and Daryl Jones, a couple of Canadians who played hockey together at Yale University and now run an investment firm in New Haven, Conn., called Research Edge. “We're all good Canadian boys. The idea of owning an NHL franchise is a dream.”

Mr. LeBlanc, 39, left RIM last year after nine years with the company, where he was vice-president of global sales. At first, he pursued a few investment ideas and launched another hockey venture – bringing an Ontario Hockey League team to his home town of Thunder Bay. Mr. McCullough, who is also from Thunder Bay, heard about the OHL idea and offered to help, along with Mr. Jones.

They were on track with those plans until May 5, when Coyotes' majority owner Jerry Moyes put the club into bankruptcy protection and announced a $212.5-million deal with Mr. Balsillie. Mr. LeBlanc wished Mr. Balsillie well and even joined his “Make it Seven” campaign.

But as Mr. Balsillie's purchase got bogged down in Arizona bankruptcy court, Mr. LeBlanc and the others began thinking about the Coyotes. Their break came in late June when Judge Redfield T. Baum ordered an auction on Aug. 5 for bidders interested in keeping the club in Phoenix. The judge said if that auction didn't produce a decent offer, another one will be held Sept. 10 for bidders, such as Mr. Balsillie, who want to relocate the club.

Mr. LeBlanc and the others dropped the OHL plans and sent a team of analysts to Phoenix to review the Coyotes' books. They also met with Wayne Gretzky, the Coyotes' coach and a co-owner, as well as NHL commissioner Gary Bettman and officials from the City of Glendale, the Phoenix suburb that financed the arena where the Coyotes play. They even came up with a name for their enterprise, Ice Edge Holdings, and launched a website.

The group won the blessing of Mr. Bettman, and is hopeful of reaching a deal with the city on a new arena lease. It has also asked Mr. Gretzky to remain as coach and a part owner.

“They have the greatest asset that you could ever want in a hockey owner in Wayne Gretzky and he is not being utilized and he knows it,” Mr. LeBlanc said. “Wayne really, really wants to keep this team in Phoenix.”

The deadline for bids was yesterday and so far the group's only competition is from Jerry Reinsdorf, owner of the Chicago Bulls and White Sox. He has offered $148-million for the Coyotes and also wants a new arena lease.

There's no guarantee Mr. LeBlanc and his group will be able to finalize their bid or win the auction. They have only offered a letter of intent, not an official offer, but they hope the judge will see that they are serious. Sources familiar with the auction are skeptical about their plans and their ability to get a bid together for the Aug. 5 auction.

Even if they win, running the Coyotes won't be easy. The club's attendance has been dismal and according to court filings, it hasn't made money since moving from Winnipeg in 1996. Last season, the Coyotes lost $67.1-million.

Mr. LeBlanc believes the club can be successful. He cites small changes such as charging for parking, putting a restaurant in the arena and changing marketing tactics as first steps. “We honestly feel that with low-hanging fruit we can get this thing to within a grasp of being a zero-deficit operation within a year to two years maximum,” he said.

The city's economy is showing signs of life, he added, and Canadians are snapping up foreclosed properties by the hundreds.

Mr. LeBlanc and the others haven't forgotten Thunder Bay. If they win the auction, the group plans to move the Coyotes' farm team, the San Antonio Rampage, from Texas to Thunder Bay and help build a new arena.

For now though, Mr. LeBlanc and the others are finalizing their offer and lining up more investors.

“We truly want to make this thing successful and we're excited about the opportunity. I think our enthusiasm can be a little bit infectious at times.”