Post by bcmike on Jan 5, 2011 13:44:59 GMT -5
bleacherreport.com/articles/562164-nhl-trade-rumors-toronto-maple-leafs-and-10-teams-that-could-be-sellers-soon/page/3
The Phoenix Coyotes have been known as a money pit for awhile now, especially since the team was bought by the National Hockey League for $140 million in 2009, to relieve the debt-ridden ownership.
According to Forbes, the Coyotes value is only $134 million. A couple of buyers have been rumored to have been interested in the team, but haven’t been able to reach an agreement with the City of Glendale, who own the Jobing.com arena where the Coyotes play, or the NHL.
The team has been operating on a deficit for the last decade and the NHL reportedly had to loan them $35 million, even after purchasing the team, just to get them through this season. Despite these conditions, Matthew Hulsizer, a Chicago businessman, is interested in buying the team.
Supposedly, he has already worked out a deal with the City of Glendale regarding the arena, but has yet to reach a deal with the NHL on the terms of purchase. Sources say Hulsizer doesn’t want to spend over $170 million on the team, but the NHL doesn’t want to accept anything under $175 (in order to recoup the $140 million they spent to buy the team and then the $35 million loan).
That’s an awful lot of dough to spend on a team running on a $20 million deficit this year that has steadily lost value since 2003. The NHL wants to recoup the money they’ve put into the team, but beggars can’t be choosers, and $170 million is more than the team is even worth, in all honesty.
Take the deal—a $5 million loss isn’t as bad as the headache for maintaining the team and moving the franchise to Canada. And here’s an idea to increase gate revenue: Since the Coyotes play in the desert, turn off all the A/C units of the surrounding areas and then advertise the hockey arena as a bargain place to come cool off. I bet they could reach record attendance.
- Seems like old news but was dated today. Maybe the NHL and Hulsizer are still haggling about price?
The Phoenix Coyotes have been known as a money pit for awhile now, especially since the team was bought by the National Hockey League for $140 million in 2009, to relieve the debt-ridden ownership.
According to Forbes, the Coyotes value is only $134 million. A couple of buyers have been rumored to have been interested in the team, but haven’t been able to reach an agreement with the City of Glendale, who own the Jobing.com arena where the Coyotes play, or the NHL.
The team has been operating on a deficit for the last decade and the NHL reportedly had to loan them $35 million, even after purchasing the team, just to get them through this season. Despite these conditions, Matthew Hulsizer, a Chicago businessman, is interested in buying the team.
Supposedly, he has already worked out a deal with the City of Glendale regarding the arena, but has yet to reach a deal with the NHL on the terms of purchase. Sources say Hulsizer doesn’t want to spend over $170 million on the team, but the NHL doesn’t want to accept anything under $175 (in order to recoup the $140 million they spent to buy the team and then the $35 million loan).
That’s an awful lot of dough to spend on a team running on a $20 million deficit this year that has steadily lost value since 2003. The NHL wants to recoup the money they’ve put into the team, but beggars can’t be choosers, and $170 million is more than the team is even worth, in all honesty.
Take the deal—a $5 million loss isn’t as bad as the headache for maintaining the team and moving the franchise to Canada. And here’s an idea to increase gate revenue: Since the Coyotes play in the desert, turn off all the A/C units of the surrounding areas and then advertise the hockey arena as a bargain place to come cool off. I bet they could reach record attendance.
- Seems like old news but was dated today. Maybe the NHL and Hulsizer are still haggling about price?