Because he has just 1 million in actual dollars to be paid and the Yotes are poor and known to be looking to rid themselves of actual cash.
That was the rumor/speculation early in the off-season when news came out regarding pissed per diem, and late bonuses, and unpaid rent.
Since then, we’ve learned that in addition to owning casinos and hotels in Vegas and Reno, Alex Meruelo owns banks, construction companies, media companies, restaurants, etc and is so well diversified that he doesn’t seem to be in financial trouble. Pre-COVID, he was one of the richest owners in the NHL, with a net-worth in the multiple billions. Some of his holdings have been terribly impacted by COVID, while others are doing well.
Additionally the missed per firm and late bonuses were chalked up to employee turnover, and new processes.
While the missed rent was explained as them reshaping many of their partnerships. They seem to be fed up with Glendale, and refusal to pay up appears to be a bargaining strategy. They’re painting it as being unwilling to pay as directed, rather than unable to pay as directed.
Talk is cheap, though, right? They could easily just be saving face. We’d have to look at their actions to see whether it’s worth buying at least some of what they’re selling. So what have we seen?
Vancouver was attempting to leverage OEL’s two-team trade list and Arizona’s purported financial squeeze to acquire him on the cheap. They offered Virtanen, Sutter, a 1st and a 2nd. It’s low-ball to be sure. But it’s not embarrassingly bad. It’s two roster players and the two picks the league stripped away from the team.
Armstrong declined because it wasn’t a good enough package of futures. He wanted Podkolzin, Demko, or Hoglander in the deal (likely instead of one of the picks). Would he have been able to decline if he were under pressure from ownership to rid themselves of OEL big contract?
Virtanen, Sutter, a 1st and a 2nd is actually an impressive return if you absolutely must trade the player no-matter-what because of finances, and he’s provided only a two team list. That’s some impressive negotiation with so little leverage. But BA declined. Likely because he wasn’t pressured to make the move.
Then there’s the salary cap. The Coyotes are still over the cap by between one and one and a half million. Yet Armstrong has stated to multiple sources that the roster as it stands will almost certainly be what is brought to camp other than perhaps a small tweak or two.
It looks like the Coyotes will again spend right to the cap, just as they did last season, the first under Meruelo.