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This article was published 4/5/2011 (3387 days ago), so information in it may no longer be current.
Details of the NHL’s new financing package to keep the Coyotes in Phoenix are beginning to leak out and the package could be brought to City of Glendale council for a vote next Tuesday.
The NHL owns the Coyotes and has been trying to sell them for close to two years.
The league looked to have deal in place earlier this year when Glendale and potential buyer Matthew Hulsizer struck an arrangement that would have seen the city front the Chicago businessman $100 million of the $170-million purchase price.
That deal fell apart when the Goldwater Institute deemed it illegal and threatened to file suit under the terms of Arizona’s gift clause which prevents government from subsidizing private business.
Winnipeg’s True North Sports and Entertainment has been waiting for the NHL to make a decision regarding the Coyotes and is poised to purchase the team and relocate it to Winnipeg.
Glendale pledged to pay Hulsizer $97 million in arena management fees over a five year period - also seen to be illegal by Goldwater.
The new package could contain a $50 million bond issue from the city directed to Hulsizer’s purchase, according to a report in the Phoenix Business Journal. Hulsizer would increase his initial investment from $70 million to just over $100 million.
The NHL would drop its asking price by as much as $25 million but make up its giveback in deferred payments.
Glendale would need to release details of the agreement on Friday in order to vote on it at next Tuesday’s regularly scheduled council session.
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