14°c A few clouds
28°c Isolated showers
Winnipeg Free Press - PRINT EDITION
NHL plays waiting game with Hulsizer
Despite the lack of a finalized sale of the Phoenix Coyotes, the NHL will not begin exploring relocation options following its Dec. 31 deadline.
The league entered an agreement last spring with the City of Glendale that saw the Phoenix suburb put up $25 million to cover losses while the league operated the team during the 2010-11 season.
Included in the deal was a deadline of Dec. 31 for a sale to a party willing to keep the team in Glendale.
The absence of such a deal would allow the league to begin pursuing sales to groups including those for relocation.
But on Wednesday, NHL deputy commissioner Bill Daly said the league would not exercise that option.
"Not at this point. We will still be committed to finalizing the Coyotes transaction," Daly said in an email to the Free Press.
It will be interesting to see how long the league is willing to wait. Glendale has made large financial promises and must now follow through in a timely fashion.
The NHL still has the prospect of selling the Coyotes to True North Sports and Entertainment should Glendale prove unable to meet its burden.
Glendale agreed earlier this month to a new lease agreement with Chicago businessman Matthew Hulsizer that would see the city pay Hulsizer $197 million over six years to keep the Coyotes in Glendale. Included in that arrangement is an upfront payment of $100 million to help Hulsizer finance the purchase of the team for $170 million from the NHL.
Bankruptcy
The league bought the Coyotes out of bankruptcy for $140 million in the summer of 2009 and has lost in the neighbourhood of $30 million while operating the team.
At the heart of Glendale's plan is the issue of a $125-million municipal bond to raise the cash they must give Hulsizer in order for him to buy the Coyotes.
Without the $100 million, Hulsizer either can't or won't buy the franchise.
It seems like a slam dunk and likely will come to fruition.
But Glendale deputy city manager Art Lynch raised the subject of a tipsy U.S. bond market during his presentation to city council on Dec. 14, suggesting the city wait out the market and enter at a more opportune moment.
That moment, however, doesn't appear to be coming any time soon.
The U.S. municipal bond market is on the precipice of a meltdown, according to CBS news magazine 60 Minutes.
Wall Street analyst Meredith Whitney told 60 Minutes she expects to see major upheaval in the muni bond market.
"There's not a doubt in my mind that you will see a spate of municipal bond defaults," said Whitney. "You could see 50 sizable defaults. Fifty to 100 sizeable defaults. More. This will amount to hundreds of billions of dollars' worth of defaults."
Lynch told Glendale council they would have to offer a high interest rate in order to make its bond attractive and that number could be climbing every day if the market remains unstable.
Bloomberg is predicting the next quarter to be the worst for municipal bonds since 1994. Not the best time to be entering such a market, but time is a luxury Glendale doesn't have.
They need to come up with their $100 million in the next month at the outside.
Glendale has been squeezed every which way on this deal.
First by the NHL, then by Matthew Hulsizer and now it's likely by a turbulent U.S. market.
One has to wonder how much juice they have left to give.
Republished from the Winnipeg Free Press print edition December 30, 2010 C1
More Columnists
- Back to Top
- Return to Columnists
More Columnists
(1 of 5 articles for today)
My arm tattoo has me thinking
1:00 AM 0I have a swell new tattoo on my right arm.
Prepare to be extremely jealous, because it artfully depicts a pink ...
About Gary Lawless
Gary Lawless is the Free Press sports columnist and co-host of the Hustler and Lawless show on TSN 1290 Winnipeg and www.winnipegfreepress.com
Lawless began covering sports as a rookie reporter at The Chronicle-Journal in Thunder Bay after graduating from journalism school at Durham College in Ontario.
After a Grey Cup winning stint with the Toronto Argonauts in the communications department, Lawless returned to Thunder Bay as sports editor.
In 1999 he joined the Free Press and after working on the night sports desk moved back into the field where he covered pro hockey, baseball and football beats prior to being named columnist.
Poll
Most Popular Columnists
- Bible Belt's bogeyman still haunts town
- At 55, I'm wise to what's real in life
- Blue offence must make teams pay for blitzing Buck
- Mack, Burke give each other room to do their jobs
- Mau Maus win 50-year-long battle
- Boyfriend's right; you should wait
- Nepinak's leadership gathering steam
- Bigger Byfuglien in no shape for a trade
- Next time, see if she'll let you wear your jersey
- Bark in the park more than a lark
- Fiasco fixers
- Bible Belt's bogeyman still haunts town
- Nice new digs, but Buchko has work to do
- What a knockout!
- Nepinak's leadership gathering steam
- 'Nice' guy taking sex partners for granted
- Discovering your wife's kinky behaviour isn't an invitation to join the party
- Your new 'friends' have unlocked a mystery
- Offensive linemen move faster than buses
- UFC 161 a smash success
- When the Ford jokes stop
- Ground control to Major Chris
- Burmistrov wants out of Winnipeg
- Bigger Byfuglien in no shape for a trade
- Immobilizer program too cosy, some charge
- A new mom's booze-fuelled hell
- Fiasco fixers
- Downtown's parking facilities tell story of city's development
- Bible Belt's bogeyman still haunts town
- Katz bogeys again
- Bible Belt's bogeyman still haunts town
- At 55, I'm wise to what's real in life
- Mau Maus win 50-year-long battle
- Whether sweet or savoury, delicious is spelled 'nalysnyky'
- Bible Belt's bogeyman still haunts town
- At 55, I'm wise to what's real in life
- Mau Maus win 50-year-long battle
- Take a walk in the park to fight prostate cancer
- Psychics pull off a little magic
- Fiasco fixers
- Nepinak's leadership gathering steam
- Downtown's parking facilities tell story of city's development
- Offensive linemen move faster than buses
- Helping others despite the cost
- Downtown's parking facilities tell story of city's development
- When the Ford jokes stop
- Bible Belt's bogeyman still haunts town
- St. Norbert sees condo boom
- Immobilizer program too cosy, some charge
- Changes to CPP rules worth looking into
- Lessons learned in 4-H last a lifetime
- At 55, I'm wise to what's real in life
- A new mom's booze-fuelled hell
- Ground control to Major Chris
Ads by Google
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.
Have Your Say
New to commenting? Check out our Frequently Asked Questions.
Have Your Say
Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?
Login SubscribeHave Your Say
Comments are open to Winnipeg Free Press Subscribers only. why?
SubscribeThe Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.