Wednesday, April 29, 2009

Coyotes Living Off NHL Funds

The Phoenix Coyotes are now living under the NHL's financial roof (AZ Central):
The day after the team agreed to loan terms Feb. 24 with the NHL, it paid Glendale nearly $351,000 in overdue arena rent payments that dated to late summer 2008. The money also likely was used to meet player payroll.

The loan, for an unknown amount, gives the NHL more control over the future of the Coyotes - including the possible relocation of the team. The Coyotes have never made money since owner Jerry Moyes became an investor in 2001, and annual financial losses have exceeded $20 million during his tenure.
Good and bad. Bad obviously because the league and other successful franchises are supporting the Coyotes in this horrid economy. Good because now this gives the NHL leverage to find a new owner or (preferably) move the Yotes out of Arizona.

To get money from the league, the team pledged all of its assets, including its management agreement of Arena in Glendale, as collateral, according to financial records filed with Maricopa County Recorder's Office. Glendale officials had no comment.

The league's investment ultimately could give the NHL leverage to move the team, according to one sports business expert.

And exactly how deep were the Coyotes in before this loan?
Public records do not indicate how much money the NHL loaned the Coyotes. The team already had borrowed at least $57.5 million since December 2003 from affiliates of MSD Capital, records show.
My emotions as I write this consist of rolling my eyes and just having my face in my palms. The NHL needs to figure this out in the long term ASAP, and I don't think keeping the Coyotes in Phoenix is a viable option.

- Enjoy another Hockey Falls commercial, where analysts go to get ideas apparently:

BallHype: hype it up!