Tuesday 12 February 2013

{coyotes} Former Coyotes suitors explore new joint effort

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GLENDALE, Ariz. - Two previously unsuccessful bidders for the Phoenix Coyotes have joined efforts to explore whether to make another attempt to purchase the orphaned franchise.

Canadian marketing professional Anthony LeBlanc and Chicago financier Matthew Hulsizer, who previously came up short in efforts to buy the Coyotes, are "exploring options" about possible terms and conditions to acquire the team anew, LeBlanc told The Arizona Republic.

LeBlanc would serve as the front man for the investment group, which eventually could include five or six investors, he said.

Hulsizer confirmed his involvement in the venture but deferred further comment to LeBlanc.

Their intent would be to keep the team in Glendale, which would be a blow to possible suitors in Seattle, Quebec and elsewhere who hope to lure an NHL team.

Glendale Mayor Jerry Weiers said at least twice since Jan. 31 that he has been in frequent discussions with a couple of "very strong" investors, but he steadfastly has declined to identify them.

LeBlanc confirmed that his investment group is one of the potential buyers, but he stressed that his group's efforts are still in the preliminary stages. He has been in regular contact with Weiers and NHL executives about the matter, he said.

"We continue to explore what the options are," LeBlanc said.

"This time around, while I don't actually know this will be the case, I think the league is going to take a much more involved role in discussions with the city. So I'm kind of seeing what the league's coming to this time, before we really get ourselves too engaged."

The Coyotes became available for purchase when former San Jose Sharks CEO and President Greg Jamison failed to buy the team from the league by Jan. 31, a critical deadline for a deal he had with Glendale.

If Jamison had purchased the team by the deadline, he could have exercised a 20-year contract to manage Jobing.com Arena for an average of $15 million a year from the city. That deal evaporated when he blew the deadline.

Weiers and other council members individually have said any future agreement will have to be less of a burden on taxpayers than the deal offered to Jamison. The council's change in attitude followed a change in its membership. Four of seven members were replaced in November.

It's possible to reach a new agreement, but any deal would have to have some provisions of an arena-management arrangement, said LeBlanc, a resident of Thunder Bay, Ontario.

"The city would like to see some more revenue streams at their disposal, and I think there's ways to make that happen. Our main thing, obviously, is we've got to keep the integrity of the hockey side of the operation."

His group is willing to discuss forgoing some revenue streams, such as ticket surcharges on non-hockey events at the 17,125-seat arena, he said.

"We understand that there are some cash constraints, but at the same time, we can't do a deal that wouldn't be economically feasible for us," LeBlanc said. "It's a verbose way of saying, 'Look, we understand that it won't be the same deal, but we're trying to find a middle ground that would make sense for both sides.'"

LeBlanc previously headed a group of investors called Ice Edge Holdings, but the investors failed to raise $170 million to buy the team from the NHL. This time, the purchase price won't be an issue if a deal with the city can be structured appropriately, he said.

After Ice Edge, Hulsizer made a run at the team but withdrew after the Goldwater Institute, a Phoenix-based conservative advocacy organization, questioned whether his deal required Glendale to illegally subsidize the hockey business.

Last month, Jamison pledged to continue his efforts to buy the team, even without his now-expired exclusive arena-management deal. He couldn't be reached for comment Monday.

LeBlanc said Jamison is unaffiliated with his current group. Furthermore, LeBlanc said, he is doesn't know whether Jamison or any other potential buyers similarly are moving forward with the Coyotes.

In an e-mail, NHL spokesman Frank Brown said, "In its pursuit of an ownership transfer of the Coyotes, the league always has been available to work constructively with potential purchasers and the city of Glendale." He declined to discuss LeBlanc's assertion that league executives will take a more active role in negotiations with the city.

LeBlanc said he expects that if his group moves beyond its current "exploring options" phase, negotiations to complete a deal will move quickly. He anticipates that at least the framework of an agreement would be complete by the end of the NHL regular season, which wraps up in late April.

That falls in line with Councilman Gary Sherwood's statement that the city has a "precious three or four months" to complete a deal before the Phoenix Coyotes become an extinct species in Arizona.

The council recently approved a three-pronged approach regarding the arena. The components:

-Negotiate an extension of a management deal with the NHL to run the city-owned arena through the end of the current NHL season.

-Work with Jamison and other potential buyers to secure a deal to keep the team in Glendale for the long term.

-Seek competitive bids from outside management firms to operate the facility with or without hockey.

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