News Article: Barroway to relinquish role as majority owner

[The Feckless Puck]

From Forbes: http://www.forbes.com/sites/mikeoza...mpleting-his-purchase-of-the-arizona-coyotes/

 

[Matzel]

Considering these developments I have zero doubt that his majority share was nothing more than a plan to get better financing and he is not moving to the "true" share originally agreed upon with IA.

That's the first thought that came to my mind....

 

[Kai Yo T]

This happened so fast, I have to believe it was just to get the better financing secured. If he was the 51% owner, why would there be a problem with him not agreeing on anything? He had the power to do things the way he wanted. I bet they just through that story out there as a cover and this was the plan all along after the financing was reset. The truth will come out eventually.

The lack of even a simple formality meeting between him and the COG sure seems to support the the theory that he never intended to be 51% owner. At least, in my mind.

 

[letowskie]

As long as the team is in Arizona and Don Maloney has a reasonable budget, that's all I'm really looking for.

We really need some local investors to take larger shares in the franchise. That would be recipe for long term stability. We probably can't hope for something like Pegula, but at least some local businessmen that could pitch in for the good of the local economy.

 

[XX]

We really need some local investors to take larger shares in the franchise. That would be recipe for long term stability. We probably can't hope for something like Pegula, but at least some local businessmen that could pitch in for the good of the local economy.

The NHL needs to give the team to Arte Moreno for free.

 

[letowskie]

The NHL needs to give the team to Arte Moreno for free.

Well, they know they can get something like $150M relocation fee. So even if they really want the Coyotes to stay, I don't think they are willing to let that much free cash flow to get by them.

 

[Coyotes2000]

This has been ongoing for months, the timing definitely sucks though

 

[XX]

Well, they know they can get something like $150M relocation fee. So even if they really want the Coyotes to stay, I don't think they are willing to let that much free cash flow to get by them.

If A is the expansion fee for a given market, B is the relocation fee, and C is the ongoing cost to keep the Coyotes alive, then the team will only move when B+C is greater than A.

When we're talking $500m alone for a crappy market like Vegas, it's clear the owners have $$$ signs in their eyes. Bettman will look to protect those revenue streams, as they do not have to be shared with the players. Cash money.

Even for "free" or close to it, it's not a slam dunk that he'd take the team. But he is one of the few wealthy businessmen in the valley that has pro sports chops, and could conceivably turn around the Coyotes.