Phoenix Situation: JUST THE MEDIA LINKS - NO DISCUSSION THREAD

TGOTC

Yer a wizard Oliver
Oct 3, 2009
2,475
3
On the couch
http://www.bizjournals.com/phoenix/news/2011/05/04/new-last-gasp-phoenix-coyotes.html

The Glendale City Council could vote on the new financing package next Tuesday with hopes of a very quick turnaround of the deal. Details of the plan could be released Friday by the city.

• Glendale’s $25 million payment to the NHL;

• $70 million from Hulsizer’s ownership group;

• Possibly another $37 million from Hulsizer’s group (the same amount as the Coyotes losses this season);

• A remaining $25 million that could come in several forms, according to sources.

The last $25 million could come from the NHL lowering its sale price, some kind of deferred payment plan for Hulsizer or some new financing from either the league or Glendale.
 

Howler Scores

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Mar 13, 2011
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Maricopa County
http://www.winnipegfreepress.com/sp...-of-coyotes-saga-could-be-near-121305474.html

"Well, the bottom line for us is that the money flowing from the city cannot be grossly disproportionate to the money flowing back (1). If the NHL provides seller financing by cutting its price substantially and/or spreading purchase payments over the term of the lease (2), if the city cuts its contribution substantially (3), if the management fee is reduced to cover primarily operating expenses that would otherwise be born by the city (4), and if Hulsizer guarantees revenue flows to the city backed by something more than a promise from a shell entity (5), then it is conceivable the deal could pass constitutional muster," Dranias told the Free Press in an email. "I'm not holding my breath because if they had a deal that was constitutional, I think they would have shared it with us already."

After giving it some time and thought, and granted I am not as intelligent as one would hope in breaking down his statement, I viewed 5 issues in his statement. So I am throwing out 4.5 solutions (stuck on number 4):

1. I think a $50 million bond will reflect a better chance to receive the same amount in parking revenue/sponsorship (107,919,089.60 would be the total cost with 6% interest and paying the $25 million with the $50 million should give full revenue rights to Glendale).
2. I think this is solved by the $25 million payment which came out of a Enterprise Fee account (similar to what Mesa did for the Cubs and Mesa has not been challenged by GWI).
3. The City is now essentially paying $25 million less than the original $100 million bond idea (not including the interest that the bond would have generated in payments). I suspect this will involve the NHL getting payments over time instead of a lump sum.
4. Not sure about this one but I suspect cupcakes could fix the issue.
5. This is more legal speak so I am not sure how to avoid it but is tax dollars really at stake? Sure any business venture could fail. One example is Scottsdale going with the auto dealerships instead of the Coyotes Arena. Most of those dealerships went under in 2008-2009 and less tax revenue is collected as a result. There is a difference between chance and risk and this is risk (a calculated one at that). Mesa issued a $80 + million bond for the Cubs in hopes of receiving equal value back over the long run. GWI is not challenging that so I say go for it Glendale.

To me, they (GWI) are starting to set themselves up so they can say “we worked with them for this new deal by saying what they can’t do” (thus they can claim victory like they did in the CityNorth case). In all reality, these are ideas that have already leaked out into the press so GWI is just taking each idea and claiming them as their own so the true victor is people tired of hearing about gold and water in the same sentence...IMO
 

borno87

Registered User
Dec 16, 2010
334
0
Take it FWIW

http://blogs.forbes.com/mikeozanian...ing-cold-feet-on-purchase-of-phoenix-coyotes/
And, say these people, Bettman has told Hulsizer that the league will handle and monetary costs that would result from legal action with the Goldwater Institute over the city paying him $100 million towards the purchase of the team.

But Hulsizer doesn’t want the headache and has gotten cold feet. Some close to the discussions are saying Hulsizer is going to turn his attention to buying the St. Louis Blues.
 

Noeller

Registered User
Dec 13, 2007
308
8
Oil Country
From the Wpg FP:

http://www.winnipegfreepress.com/breakingnews/Hulsizer-ready-to-pull-out-Report-121410389.html

Forbes SportsMoney writer Mike Ozanian is reporting that potential Phoenix Coyotes owner Matthew Hulsizer is having second thoughts about the deal to buy the money-losing NHL franchise and keep them in the desert.

Ozanian cites sources close to the negotiations that say Hulsizer is getting "cold feet" and will soon turn his attention to purchasing the St. Louis Blues.

Hulsizer has shown frustration with the lack of progress in the deal, thanks largely to the legal efforts of taxpayer watchdog Goldwater Institute. Goldwater has held fast to their belief that the deal contravenes the state's gift clause, and they have said they will only drop their threat of legal action once it is confirmed that private money is funding the purchase.

Meanwhile, the City of Glendale is expected to post a meeting agenda this afternoon setting up Tuesday night's regular council meeting which could involve a vote on any new deal negotiated with Hulsizer.

We will have more on this story as details are confirmed.
 

goyotes

Registered User
May 4, 2007
1,811
0
Arizona
MH's camp has dismissed the Forbes article...

@bradgold
Brad Goldberg

We remain committed to getting the deal done in Phoenix. Forbes and NBC Pro Hockey Talk blogs not accurate. #coyotes.


Brad Goldberg is MH's right hand man on this deal, and he works for MH's Peak6 company. He is projected to have a role in the Coyotes organization marketing should the deal proceed. I think we can count the Forbes statement as false.
 

billy blaze

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May 31, 2009
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http://www.theglobeandmail.com/sports/hockey/arizona-hopes-to-hang-on-to-coyotes/article2013660/

Lieberman quotes

“In my mind, it’s an excellent deal,†said Lieberman, who believes the measure will pass easily, either unanimously or with perhaps a single nay vote.
However, Lieberman noted that “we do not have a signed deal with Hulsizer -and there is some discussion as to whether we will ever get one or not get one. I don’t personally want to give him $110-million.

“In my mind, this (proposal) will give us a year to find somebody else who may be willing to buy it and come up with much more money. Real money – instead of city money.â€

Lieberman theorized if the NHL did a better job of running the building apart from just the hockey team, the losses could be mitigated.

“There the ones that rent the space for concerts, shows and what have you,†said Lieberman. “They did not do an exceptional job of that last year.

“The other thing about the audience backing, instead of 12,200 in attendance, let’s get the number up to 15,000. Three thousand more paid for 41 nights a year, that’s a lot more money.â€

“I’m not against the Coyotes,†concluded Lieberman. “I’m just against the city financing his puchase. I don’t approve of that.â€
 

Marc the Habs Fan

Moderator
Nov 30, 2002
98,348
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Longueuil
TSNDaveNaylor David William Naylor
Glendale Councilor Phil Lieberman on another year of Coyotes for $25M: "I think it may pass 7-0 or 6-1. All of us want to buy more time."

TSNDaveNaylor David William Naylor
Glendale Councillor Lieberman: "I would be personally interested if we could do a deal with Balsillie ... Get him to buy it and (cont) ...

TSNDaveNaylor David William Naylor
(Lieberman cont) "and keep it here 10 years. Then I don't give a damn what he does with it."

TSNDaveNaylor David William Naylor
Lieberman: "I don't think we can finance Hulsizer .. This is 5 months. I don't think the bonding companies want this deal."

David William Naylor
Goldwater says it has to identify the source of the $25 million commitment by Glendale before it can determine whether to sue.
 

billy blaze

Registered User
May 31, 2009
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mod:delete

http://www.tsn.ca/nhl/story/?id=364902

"We are going to renew the contract with the NHL and put $25 million aside," said Glendale city councillor Phil Lieberman. "There is already $20 million in our budget and we have to come up with another $5 million. The $20 million will be up for vote and if they use that up then another $5 million. So we will duplicate what we did last year.

"I think it's a good deal that allows us to find a better solution. We do not have a signed contract or agreement with (potential suitor Matthew) Hulsizer," added Lieberman. "I think it may pass 7-0 or 6-1, all of us want to buy more time but I don't know if we will find someone else."

Lieberman did not sound optimistic that a deal with Hulsizer can be worked out.

"I don't think we can finance Hulsizer. We voted on this on Dec. 14th, this is five months later," said Lieberman. "I don't think the bonding companies want this deal. I have not been able to dig up financial records on Hulsizer, try to find them."

However, he did bring up a familair name when it comes to prospective buyers for NHL franchises.

"I would be personally interested in seeing if we could do a deal with (Research in Motion president Jim) Balsillie," added Lieberman. "I think the best thing we could do is to get him to buy it and keep it here for 10 years and then I don't give a damn what he does with it."

Daly confirms COG approached them

"As we have for the past two-plus years, we have been working very closely with the City of Glendale to do everything possible to ensure the Coyotes' future in Glendale," added Daly. "At the City's request, we have agreed to pursue another one-year interim arrangement while we jointly pursue a long-term ownership solution. We remain confident that one exists, and we intend to continue to pursue it."
 
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Fugu

Guest
http://sports.espn.go.com/nhl/news/story?id=6496907&campaign=rss&source=NHLHeadlines

The proposal is expected to pass -- one source told ESPN.com Friday it would be a "no-brainer" for the city -- and could take some of the pressure off of the municipality to sell more than $100 million in bonds that are crucial to closing a deal with Chicago businessman Matthew Hulsizer.
...
Brad Goldberg, vice chairman of Arizona Hockey Holdings, the group led by Hulsizer, told ESPN.com Friday that Hulsizer is committed to a deal in Phoenix.
He also denied reports Hulsizer was interested in purchasing the St. Louis Blues.


Ice Edge Holdings announced Saturday that it is withdrawing from the Hulsizer bid to buy the Coyotes, a source told ESPN.com. This development likely will not have an effect on Hulsizer's interest in the team because Ice Edge represented only a small percentage of the deal. The Ice Edge group was not interested in another year of potential uncertainty surrounding the sale of the team, the source said.

What remains unclear is whether the municipality's agreement to cover losses again next season will persuade the NHL to give Glendale additional time to get a deal done with Hulsizer -- or someone else -- or whether the league will exercise its right and begin relocation of the team to Winnipeg for the start of the 2011-12 season.


Burnside tends to be an NHL lackey, so interesting that he says the NHL's position is unclear. Earlier reports said the NHL had already accepted Glendale's promise for next year.
 

billy blaze

Registered User
May 31, 2009
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http://www.theglobeandmail.com/sports/hockey/lessons-learned-in-phoenix/article2015894/

Brunt Anniversary column

We have learned the Atlanta Thrashers must be in significantly worse shape than the Coyotes, that they must represent a whole other level of unsalvageable, which really, is hard to imagine. Because there are no patsies offering bags of money in Georgia, the league needs a solution there, pronto.

We have learned the true value of the Coyotes in Glendale is zero – actually, something less than zero, since no prospective investor has offered to put their own money into a deal, leaving Chicago businessman Matthew Hulsizer with the only offer to “buy†the team, underwritten by a $116-million municipal bond issue and a $97-million management contract. In the end, even he got cold feet.
 

billy blaze

Registered User
May 31, 2009
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Ken Campbell - Hockey News

http://www.thehockeynews.com/articl...staying-will-have-huge-impact-across-NHL.html

First to Glendale, where the city council will once again be pressured by the threat of relocation into funding the majority of losses for the Coyotes for at least one more season. That much has been well documented. But what hasn’t come to light is the near certainty the $25 million this time around will come directly out of the city’s operating budget. The last $25 million came from a utilities-repair account, but the difference this time is the same money the city would have used to repair roads, build infrastructure, hire policemen and keep libraries open later will go instead to funding a hockey team that everyone outside the NHL’s brain trust sees as ultimately doomed for failure.


The picture is pretty much the same in Arizona, where the tax base is shrinking rapidly. The property valuation went in 2009 from $2.2 billion to an expected $1.1 billion in 2012. A 50 percent drop in property values will hit the city hard when it calculates tax bills for its residents. Local councillor Phil Lieberman, who has been critical of the Coyotes sale, said his own home was valued at $326,000 two years ago and when he ran a rating the other day, it was down to $122,000.

Still, Lieberman, said he will likely support the $25 million motion to keep the Coyotes afloat for another season, but he will have to swallow hard and hold his nose as he does it.

“I’m a fence sitter,†Lieberman said. “I see both sides of this issue. I hate to spend $25 million, but I would hate for Westgate (the development around the arena) to go broke. That would not be good.â€
 

LadyStanley

Registered User
Sep 22, 2004
105,738
18,864
Sin City
http://www.tsn.ca/nhl/story/?id=365374

AP story

Before the vote, NHL deputy commissioner Bill Daly told the council that the league remains committed to keeping the team in Arizona. He said he hadn't anticipated being back for another $25 million, that the league thought it had a buyer in Chicago businessman Matthew Hulsizer, but he indicated the league could seek another buyer.
...
"We're much closer to the finish line," Daly said. "I think we are getting there whether it is with Mr. Hulsizer or another potential buyer."
...
Hulsizer's efforts have hit a logjam that, Daly conceded, might be impossible to break. Hulsizer has indicated he has made his last, best offer and the Goldwater Institute vows to sue if the city follows through on the deal. The institute says it is concerned that the terms of the lease violate the state's constitutional ban on subsidizing private enterprise.
...
Meanwhile, the Coyotes could be left without solid ownership for a third season, something that coach Dave Tippett had labelled unacceptable if the franchise is to be viable.
 

Dolemite

The one...the only...
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May 4, 2004
43,191
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Fox 10 - Hulsizer pulling out of the deal

According to Jude LaCava on Fox News at noon, Hulsizer is pulling out of the deal. Working on confirmation from Hulsizer's group....
 

Fugu

Guest
Not sure if this was posted here earlier, from Daly's remarks last night:
Legal move, new buyer among Coyotes possibilities Posted 5/11/2011 1:57 PM ET
By Bob Baum, AP Sports Writer


GLENDALE, Ariz. — The NHL is considering a legal move to clear the way for the sale of the Phoenix Coyotes to Chicago businessman Matthew Hulsizer. The league also may have another potential buyer stepping forward in place of Hulsizer as the saga over ownership of the troubled team enters its third year.
...
"We really need to step back and look at next steps," Daly said, "and maybe it is to clarify the legal position and move forward with that structure. That might clear a lot of things up. Maybe it's restructuring (the Hulsizer deal). Maybe it's a new investor with a new deal. Those are all possibilities and tonight's resolution will give us an opportunity to explore those."
Asked if there was another potential buyer, Daly replied, "As I said, I think we have to evaluate all our options and I think there are other options."
...
Daly was talking about gaining a "declaration" from a court that the terms of the lease agreement reached between Hulsizer and Glendale does not violate the Arizona constitution's ban on subsidies. The conservative Goldwater Institute has vowed to sue if Glendale signs the lease deal.

http://content.usatoday.net/dist/custom/gci/InsidePage.aspx?cId=azcentral&sParam=36455775.story
 

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