Dysfunction in the desert: Finger-pointing, fear and financial woes roil the Coyotes organization

[Fatass]

Would any new owner (the buyer) want to continue with the team in its current location?
When a team is sold can the new owner move the team? Maybe a new local owner is what will happen?

 

[CHRDANHUTCH]

Would any new owner (the buyer) want to continue with the team in its current location?
When a team is sold can the new owner move the team? Maybe a new local owner is what will happen?

that has been the Standard MO since 1996.larry.

only as a last resort, there are stipulations that a new owner cannot relocate the franchise.

 

[MNNumbers]

The part of the non answers lie with the host not asking the follow up questions, including why does he think the team has been for sale for the past 6 months.

Now the team being for sale is far from a definitive thing but Mr. Shannon said it....without being asked..... for a reason and with him so tight with the league office I can't see why he would want to start a rumour.

The possibility shouldn't be dismissed either.

I kind of agree with this. If the team isn't for sale, and hasn't been, then there appears to be every reason for Shannon NOT to say something and start tongues wagging. If he has insider status with the league, that wasn't a wise thing for him to say.

The other thing that was 'big' out of this was the idea that QC is simply too small to host a team. Although I think that many of us agree, it was strange that he said it, for the same reasons.

 

[Mightygoose]

I kind of agree with this. If the team isn't for sale, and hasn't been, then there appears to be every reason for Shannon NOT to say something and start tongues wagging. If he has insider status with the league, that wasn't a wise thing for him to say.

The other thing that was 'big' out of this was the idea that QC is simply too small to host a team. Although I think that many of us agree, it was strange that he said it, for the same reasons.

Yeah I heard that too. With QC though (and Houston) he was directly asked about it and he gave his opinion....I don't think it would be the landing spot anyways......a possible Coyotes sale had a different segue.

Time will tell on what happens but there appears to be some visible fractures in Meruelo's ownership now

 

[TheLegend]

Very true and time will tell if there is fire to any of this smoke.

At the same time why would Shannon even bring his opinion up in the first place? Easier to say he's committed to the franchise/market etc....in addition to his learning curve of owning a sports team.

He seemed to validate the Strang article but that could be support within the media community.

My understanding from another poster over on HFYotes was Kypreos previously put out a lot of what Shannon said the day before.

Strang has been doing a talk radio tour since she published the article. So now everyone pumping up the tires on many things that most people knew about for a while now. Strang’s article contained only two items that I wasn’t aware of (the sexual harassment issue and her interaction with new GM Bill Armstrong over his accusation that someone pulled files from his PC and leaked them to The Athletic which initiated this current affair.)

I don’t think the entire truth is out there yet. Nor do I think we’ll ever see it. Like Shannon said..... Bettman doesn’t like hanging out the laundry.

 

[MNNumbers]

My understanding from another poster over on HFYotes was Kypreos previously put out a lot of what Shannon said the day before.

Strang has been doing a talk radio tour since she published the article. So now everyone pumping up the tires on many things that most people knew about for a while now. Strang’s article contained only two items that I wasn’t aware of (the sexual harassment issue and her interaction with new GM Bill Armstrong over his accusation that someone pulled files from his PC and leaked them to The Athletic which initiated this current affair.)

I don’t think the entire truth is out there yet. Nor do I think we’ll ever see it. Like Shannon said..... Bettman doesn’t like hanging out the laundry.

Legend,
Do you have link to the Kypreos information?

Thanks.

 

[TheLegend]

Legend,
Do you have link to the Kypreos information?

Thanks.

Don’t have one. Just one of the posters who mentioned it off the cuff in our thread on this. I’m going to presume at this point he mentioned it on one of the TV segments he does. Thought about going down that rabbit hole to dig it up but I haven’t had time.

 

[MNNumbers]

Don’t have one. Just one of the posters who mentioned it off the cuff in our thread on this. I’m going to presume at this point he mentioned it on one of the TV segments he does. Thought about going down that rabbit hole to dig it up but I haven’t had time.

Thanks. And, thanks for the respect in not assuming I am trying to work any insults toward the AZ market franchise or otherwise. Just looking for the right information.

 

[PredsHead]

My understanding from another poster over on HFYotes was Kypreos previously put out a lot of what Shannon said the day before.

Strang has been doing a talk radio tour since she published the article. So now everyone pumping up the tires on many things that most people knew about for a while now. Strang’s article contained only two items that I wasn’t aware of (the sexual harassment issue and her interaction with new GM Bill Armstrong over his accusation that someone pulled files from his PC and leaked them to The Athletic which initiated this current affair.)

I don’t think the entire truth is out there yet. Nor do I think we’ll ever see it. Like Shannon said..... Bettman doesn’t like hanging out the laundry.

Wasn't that somewhat how the news that Mereulo was the new buyer broke as well? Seems like it was Kypreos and Shannon along with Craig Morgan who kept the story moving along slowly until it all came out. Not saying that means anything one way or the other but did seem to be similar to me. Do we know if Meruelo has done any restructuring of the debt load since he has been involved? Last thing I remember seeing was the previous ownership group getting everything rolled into one loan.

 

[TheLegend]

Thanks. And, thanks for the respect in not assuming I am trying to work any insults toward the AZ market franchise or otherwise. Just looking for the right information.

Same here.

There’s definitely been a huge cultural shift with Meruelo’s ownership. Some of it good, but some of it definitely not so good.

Just as Shannon said in the radio segment. Meruelo was subjected to a steep learning curve in regards to entering the pro sports business. Just from what we’ve witnessed in how the franchise publicly reacted to John Chayka’s walking out and to Strang’s article he’s got a very passionate personality. Maybe too much?? I don’t know. Depends on which side of it you’re looking from.

The Coyotes front office needed a shake up but could be it’s more than they can handle? I dunno. The pandemic has changed the game.

 

[TheLegend]

Wasn't that somewhat how the news that Mereulo was the new buyer broke as well? Seems like it was Kypreos and Shannon along with Craig Morgan who kept the story moving along slowly until it all came out. Not saying that means anything one way or the other but did seem to be similar to me. Do we know if Meruelo has done any restructuring of the debt load since he has been involved? Last thing I remember seeing was the previous ownership group getting everything rolled into one loan.

All good questions.

We still don’t know how the team was acquired. Whether it was payoff of debt or assumption it it. Or some of each.

The article paints a picture of The Meruelo Group being a stickler for every penny spent yet they allowed Chayka to take the roster off the cap floor up to the ceiling. They haven’t curtailed any of their charitable work either.

It’s a contradiction.

 

[MNNumbers]

Same here.

There’s definitely been a huge cultural shift with Meruelo’s ownership. Some of it good, but some of it definitely not so good.

Just as Shannon said in the radio segment. Meruelo was subjected to a steep learning curve in regards to entering the pro sports business. Just from what we’ve witnessed in how the franchise publicly reacted to John Chayka’s walking out and to Strang’s article he’s got a very passionate personality. Maybe too much?? I don’t know. Depends on which side of it you’re looking from.

The Coyotes front office needed a shake up but could be it’s more than they can handle? I dunno. The pandemic has changed the game.

Pandemic has really changed the game. Most ownerships are going to be suffering. Especially in hockey. It continues to be my idea that....

1- In a few years, the fans will be back. I think this is more true for hockey than other sports.
2- In the interim, those ownerships who can find ways to finance the missing revenue will be ok.
3- Especially those from more challenging markets. And, I say this because, on balance, the challenging markets usually suffer from 'less local support'. If you take local support out of the equation, then the amount of revenue available for every team levels out.
3a- Owners are essentially offering players a loan here. CBA adjustments suggest that the owners are paying the players much more than 50% of actual HRR during the pandemic. This is all supposed to come back to the owners in future years.
3b- That means that you will have a few years, if you own AZ or some other challenging market, with less debt than would have been accrued without the pandemic.
3c- But, you have to make it through the distressing times.....

So, who wins? Idk. Deep pocketed guys win, of course. Meruelo, since all of this business is suffering, may have problems.....

 

[PredsHead]

All good questions.

We still don’t know how the team was acquired. Whether it was payoff of debt or assumption it it. Or some of each.

The article paints a picture of The Meruelo Group being a stickler for every penny spent yet they allowed Chayka to take the roster off the cap floor up to the ceiling. They haven’t curtailed any of their charitable work either.

It’s a contradiction.

Thanks, I didn't think there had been any news about the actual finances of the franchise. IMO, so far this story is long on gossip and short on facts. Interesting for sure, but not sure we know anything more than before.

 

[StreetHawk]

There’s definitely been a huge cultural shift with Meruelo’s ownership. Some of it good, but some of it definitely not so good.

The Coyotes front office needed a shake up but could be it’s more than they can handle? I dunno. The pandemic has changed the game.

All fine points. But, from a business POV, if he assumed the debt of the organization when he pushed the franchise, then all debts should be paid to the vendors.

Now, if he wishes to renegotiate the contracts/agreements on a going forward basis, he is free to do that.

But, he should honour prior agreements made by the organization. And either work with the current vendors on new agreements or formally cancel the agreements and look for new vendors.

 

[brentashton]

Garys quote about today’s Tahoe game, but it applies here too...

You can’t have success if you don’t risk failure,” NHL commissioner Gary Bettman told broadcast partner NBC Sports.

 

[TheLegend]

Coyotes CEO Xavier Gutierrez was on the team’s radio station last Thursday morning and was asked about the article.

Nothing unexpected but at minimum it presents their official side of things.

May have to scroll the page to find it but it’s only a 9 minute listen.

Arizona Coyotes Podcast | iHeartRadio

 

[GindyDraws]

In an ideal world, we would have a simple solution to coincide with next season seeing Arizona going to the Central Division:

But, with how desperate everyone is to keep Arizona working and the idiot we currently have in Houston, as well as everything going on in the world today... we do not live in an ideal world.

 

[Major4Boarding]

I’m just gonna throw this out there. It’s just something that I’ve settled in and become accustomed to in over 20+ years involving hockey media.

Elliotte Friedman and Bob McKenzie are the premiers regarding all aspects of “insider” details. So if they say it, it’s pretty much taken as gospel in my camp. I think 98% of us would agree on that.

There’s some new blood that’s creeping up on those two in the last 5 to 7 years. Too many to mention here so I’ll just stick to my “go to list” For the sake of this post.

Darren Dreger (Union Faction “A”) and Ron McLean (Union Faction “B”) are the two main conduit’s when it comes to labor strife and NHLPA matters. Ron not so much lately, but going back to the last two lockouts and the PA internal power struggles, they were the two you paid attention to the most.

John Shannon, in my experience and opinion, is the megaphone for the NHL Board of Governors, Senior Execs and occasionally (with Gary and Bill’s blessing) the League. I have my suspicions as to who he takes “directions” from (more than one) but I’ll keep those to myself. I quite enjoy JS and I have always valued his insight.

Now with that said, we have a few documented cases to where he was stone cold wrong, or off the mark a wee bit. But one thing that I have experienced is that he is not one to willfully go “rogue” nor is he “allowed” to go rogue. Even if it’s book ended with the phrase “in my opinion”.

So I’m sure what I’m posting will get dismissed by a lot of people. That’s totally fine… but I’m just sharing my experiences over many years of following this League. So in other words, it’s a really long winded way of saying that if it’s coming from John Shannon then I’m paying attention more so than I was before.

I guess we’ll see

YMMV

 

[TheLegend]

In an ideal world, we would have a simple solution to coincide with next season seeing Arizona going to the Central Division:

But, with how desperate everyone is to keep Arizona working and the idiot we currently have in Houston, as well as everything going on in the world today... we do not live in an ideal world.

It’s not ideal the Coyotes are going to the Central. Just like it wasn’t ideal for Detroit and Columbus to be in the Western Conference for so long..

But it is what it is. Compromises have to be made at times and nobody should be looking at it as some sign from the heavens above that it’s anything else.

 

[StreetHawk]

It’s not ideal the Coyotes are going to the Central. Just like it wasn’t ideal for Detroit and Columbus to be in the Western Conference for so long..

But it is what it is. Compromises have to be made at times and nobody should be looking at it as some sign from the heavens above that it’s anything else.

It works in the regular season time zone wise as they are Mountain time after most places Fall Back for daylight savings. It's not ideal for divisional playoffs, which we expect the NHL to go to once Seattle joins. Because the Central will then have AZ in PST, Col in MST, and the other 6 teams in CST.

 

[TheLegend]

It works in the regular season time zone wise as they are Mountain time after most places Fall Back for daylight savings. It's not ideal for divisional playoffs, which we expect the NHL to go to once Seattle joins. Because the Central will then have AZ in PST, Col in MST, and the other 6 teams in CST.

It works for everyone but Coyotes fans in respect to long time rivalries. Personally it doesn’t matter to me. I just know what the general sentiment is.

 

[Ernie]

What exactly is in doubt here? Why do we need John Shannon to vouch for what a highly regarded reporter has written?

I have seen zero indication that what she reported on isn't 100% factual. It is an excellent piece of investigative journalism.

Now, if another reporter wants to fill in some details about what appears to be an ongoing league investigation, then I'm all ears. But all the excuses for Meruelo and co are ringing pretty hollow right now.

I actually had a lot of hope that he could improve things. I also have a lot of sympathy for him going through multiple business setbacks at the same time and trying to keep his head above water. But the tidbit about him squeezing suppliers even before the pandemic and then his reaction to the story has me ready to write him off. Someone who has been in business this long should not be so sensitive. Where there's smoke there's usually fire...

 

[PredsHead]

What exactly is in doubt here? Why do we need John Shannon to vouch for what a highly regarded reporter has written?

Where there's smoke there's usually fire...

Because after reading a piece of investigative journalism, you should be to at least see, hear, feel or taste the fire. All we have so far is more smoke. Not saying anything that has been reported is wrong, but nothing is proven. Its all still speculation and hearsay. Also the biggest bombshell dropped this week is that the team could be on the market again, and that I believe came from John Shannon.

 

[Ernie]

Because after reading a piece of investigative journalism, you should be to at least see, hear, feel or taste the fire. All we have so far is more smoke. Not saying anything that has been reported is wrong, but nothing is proven. Its all still speculation and hearsay.

That's an absurdly high standard to hold any reporter to. She interviewed 50 people. Most stories rely on just 1 or 2 sources! Next you'll be accusing her of having a vendetta against the team.

 

[TheLegend]

That's an absurdly high standard to hold any reporter to. She interviewed 50 people. Most stories rely on just 1 or 2 sources! Next you'll be accusing her of having a vendetta against the team.

The counter to your argument is this....

IIRC she didn’t eloborate whether or not they all said the same thing.

So how many of the 50 people interviewed actually said or confirmed what she reported?

It really doesn’t matter how many people she talked to. Or describing the opulence of Xavier Gutierrez’ house for that matter. There was definitely been friction between former employees and some vendors. We’re still left to make all sorts of presumptions as to what really went on since she only presented one side of it.