The two groups looking to purchase the Phoenix Coyotes, Chicago’s Jerry Reinsdorf and the Ice Edge Group, have both signed memorandums of understanding on a revised lease agreement with the city of Glendale.
This is a step in the right direction for both the potential owners, the team and the city of Glendale.
Each proposal would benefit the buyer through a creation of a “Community Financial District”. A financial district encompasses offices and headquarters of many of the city’s major financial institutions. The proposals look to have the Financial District aid in the funding.
Each proposal also would change the current name of the Phoenix Coyotes to either the Glendale Coyotes or the Arizona Coyotes. It has not been reported if the logo will change as well or not.
The city council will vote on the proposals next Tuesday. If both proposals are approved, it will be left to the NHL to decide.
One thing that might factor into the decision of the city is the opt-out in Reinsdorf’s proposal. In the fifth year Reinsdorf, known as Glendale Hockey, would have the ability to give a 180-days notice that intends to sell the team. The city would then be given 180 days to find a buyer to keep the team in Glendale for a minimum purchase to Reinsdorf for $103 million.
Ice Edge does not have an opt-out notice, but looks to have a ticket surcharge that varies from Coyote games and other venues at Jobing arena.
The two proposals also vary in financing. Reinsdorf looks to bring more money to the table and looks at the team as a business investment, while Ice Edge would need bank financing, but has a better love of the game. The NHL does not allow a buyer to finance more than half of the value of the franchise while it is believed the initial $70 to $80 million is out of reach for Ice Edge.
Nothing is finalized and far from so, but steps are being made in the right direction. Each proposal and companies have their advantages and disadvantages. Right now it rests in the city of Glendale’s hands on what they believe to be the best for them and their fans.
