Glendale has released the two competing buyers of the Phoenix Coyotes’ lease proposals. The two groups are Ice Edge Holdings and Reinsdorf Group, which includes Chicago sports tycoon Jerry Reinsdorf.
Things apparently got –to use a hockey term – chippy between Ice Edge and the city of Glendale, Arizona. According to the Arizona Republic, Ice Edge, a Canadian and American investor group threatened early last week to walk away after Glendale asked for changes to its proposal.
The agreements released are broad outlines of how Ice Edge and Reinsdorf plan to pay Glendale to use Jobing.com Arena. The city built the facility in 2003, spending $180 million. The Reinsdorf group would buy the team for somewhere between $100 and $165 million. Ice Edge plans to offer the NHL between $140 and $150 million.
Both groups said they would raise parking fees, while Ice Edge would raise money on non-hockey events and through ticket surcharges. They said the team would keep the Coyotes in Glendale for the 24-year duration of the arena lease.
No matter which proposal “wins,” the Phoenix Coyotes will no longer be called Phoenix. Part of both proposals is to change the name of the team to either Glendale or Arizona.
Whichever teams buys the Coyotes will be in for a challenge, the team hasn’t turned a profit since moving to Arizona in 1996.
Here’s an outline of the Reinsdorf and Ice Edge proposals, view the full proposals from the Reinsdorf group (PDF) and Ice Edge Holdings (PDF):
Terms of the two Coyotes deals
Reinsdorf Group (Glendale Hockey LLC) would:
• Buy the team from the NHL for $65 million, less than half of what the league paid for the Coyotes in bankruptcy court.
• Fund the team's purchase price and up to $100 million in losses over seven years through a community facility district, which the city would create around the arena within 120 days. The independent taxing district would sell bonds and collect other revenues.
• Raise parking fees to between $8 and $20 per car and share the revenues with the city at the current level.
• Take over arena operations.
• If, after five years, the Coyotes continued to lose money, the city would cover the losses or the group would sell the team for no less than $103 million.
Ice Edge Holdings LLC would:
• Offer the NHL between $140 million and $150 million, the price paid by the league for the team last fall, through bank financing.
• Raise $14.5 million per year from landowner fees, parking fees and ticket surcharges, including non-hockey events, paid through a community facility district, to cover team losses.
• Give any money above $5 million from landowner fees to the city for 10 years.
• Share part of the parking proceeds with Glendale.
• Have the option of playing five games in Canada.
• Have the first right of refusal if Glendale sold the arena.
• Honor the 24-year duration of the arena lease.
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Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be followed on Twitter
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