A lot can happen in a week.
On Monday night, NHL Commissioner Gary Bettman addressed the media in Chicago prior to the Hawks game with the Canucks. Most important nugget to Arizona hockey fans? A quote from his holiness that a deal to sell the Phoenix Coyotes to a group headed by Jerry Reinsdorf would be beneficial to the franchise and the league.
"It will be great for this league and that franchise if Jerry is able, with his partners, to consummate that transaction," Bettman said Monday night before Game 2 of the Western Conference semifinals between the Vancouver Canucks and Blackhawks.
And we all lived happily ever after. Right?
Not quite.
Like many sound bites, it faded quickly. The seemingly never ending ownership saga took some new and quite unexpected turns in the past 72 hours. First we heard from the well connected Darren Dreger that Ice Edge, the enthusiastic group of young businessmen, had gotten a call from the City of Glendale inviting them back to the dance. And then we learned that the NHL had asked (told may be more like it) Glendale to guarantee any losses the team might suffer in 2010-11 if new ownership could not be completed by the start of the league season (July 1st).
So what to make of all of this?
Well, we’ve done a little digging and will try to add some context to what is going on.
The NHL is running out of patience with the City of Glendale. The league is facing a June 30th deadline on which they will void the Jobing.Com Arena lease and send it back the Moyes estate if new owners are in place. They are also in the process of drawing the 2010-11 schedule and need to start firming up where this team will be playing next year. Typically the schedule is completed by the first week of July.
The NHL has been extremely patient with Glendale, the bidders and the process but now they are bringing the issue to a head. They have asked the City to guarantee any losses the team has if new owners are not in place by July 1. In effect, they will commit the team here for at least another year but they will not fund the losses.
The message to Glendale is clear – agree to fund the losses if they can’t make a deal with an owner or get a deal done with a buyer the league will approve. And fast. Even though both groups have been vetted by the NHL, there’s still a little matter of finalizing financing and getting the other team owners to approve the sale. Nothing is certain until the Board of Governors approves the transaction.
Let's clarify one important point. The league’s objective is not to have Glendale become the owner or the bankroll the team for an entire season. No one expects a government entity to cover the teams losses from city funds. Even in good times, that dog doesn’t hunt. What the league does want is assurances that Glendale won’t drag this dance on and the best way to do that is to apply significant economic pressure on the city.
And Glendale seems to have gotten the message. The proposal the Council will vote on funds any losses from the special district that will accompany the sale of the team. It’s the same mechanism that will generate more income from ticket surcharges, parking fees and some incremental taxes on the Westgate development to help new owners. And I’m guessing that the City fathers and mothers have already worked out what this means behind closed doors.
Now, about those new owners. At some point, the Team Reinsdorf and/or someone at the City of Glendale realized that the sweetheart deal cut to save the team might be very difficult to pull off. I don’t know who got cool feet first but it’s clear that someone flinched enough that the City decided to call Ice Edge and see if they had made other prom plans. Right now no one is confirming or denying the Reinsdorf deal is officially off but it’s seems shaky enough that Elaine Scruggs and Ed Beasley will likely be getting their ring back this week.
This of course, now brings Ice Edge back into the picture. For those of us who have communicated with the Ice Edge group formally or informally and the many Coyotes fans who have hung on every word of this soap opera, that’s good news. The perception is that these are good guys, they love hockey and as I have told you on several occasions, they have money. These are not the Little Sisters of the Poor trying to buy a hockey team.
And to Ice Edge’s credit, they are also applying some pretty big pressure to Glendale. You want a deal? Then we want to be your exclusive dance partner. When someone jilts you, paybacks can be a bear. Sometime in the next day or two (or perhaps already) it appears they will be getting an exclusive agreement that effectively means the Reinsdorf bid is off the table. And all of Glendale’s chips will now be squarely on their shoulders.
While the Reinsdorf brand may have the bigger reputation and the unabashed support of the Commissioner, I’m an Ice Edge guy. I just think these guys have the energy, acumen and enthusiasm to pull it off. They want to make money but they don’t seem to be in it just for the money. I like their style.
The drama resume on Tuesday. The Glendale Council will vote on the short term proposal to mollify the NHL. Once that proposal is passed, the negotiations with Ice Edge and the NHL will likely be at warp speed.
And if all this fails, we’ll all have a lot to talk about on Wednesday. Much of which won’t be good.
On a separate note I want to thank all of you who have called, written tweeted or texted me supporting the Western Hockey Exchange. I haven’t been able to write as much as I would like lately but I’ll try to stay on top of things in the next few days.
Showing posts with label Ice Edge. Show all posts
Showing posts with label Ice Edge. Show all posts
Sunday, May 9, 2010
Thursday, April 1, 2010
Glendale's Got (Skin In The) Game
The ball, or shall we say the puck, is in Glendale’s end of the ice. And time is running out.
From day one, we have contended both here and on our frequent calls to sports talk radio that sooner or later, Glendale will have to come forward with lease accommodations or the Coyotes will leave town. Now it’s not only playoff talk that’s heating up. The negotiations to sell the Coyotes have reached a critical stage. Expect news, perhaps big news, in the next few days.
There is a lot of pressure on the Glendale City Council. The Coyotes have become the hot team in town in recent weeks, with their tremendous regular season culminating in a playoff spot. What’s more, as long predicted, the city is responding to the team. Crowds are building. It seems like Coyotes players are everywhere on radio and television. Even chronically disinterested sportscasters like Dave Byrnes and Bob Kemp are starting to pay attention.
The Glendale City Council heard proposals from both groups on Tuesday. No action was taken. There’s been talk that the City is stalling to let Jerry Reinsdorf’s group further their negotiations but little solid proof that is the case. Reinsdorf’s insistence on some kind of an out clause could be a deal breaker for the city.
And while the Coyotes future is the most time sensitive issue, there are a lot of moving parts in Glendale right now. And most of them are moving in the wrong direction. The city continues to fight the Tohono O'odham Indian Nation over their plans to build a casino a mile north of Westgate. Construction has not yet started on the USA basketball development center. And the city’s Main Street development, which is intended to pay for much of the City’s Camelback Ranch debt, has been delayed by financing issues.
Now it doesn’t take a genius to figure out that a) the fate of the Coyotes, b) the construction of the basketball center and c) the lack of the Main Street development to pay for Camelback Ranch all have the potential to be revenue drains on the city. Big revenue drains. At a time where cities are scrambling to keep police and firemen on the street, it’s a litany of issues that Glendale doesn’t need.
The financial issues of car wash entrepreneur Danny Hendon haven’t helped either. Hendon had signed on to the Ice Edge group as an investor and was one of the lead players in financing the Main Street development. He and his money are occupied right now reorganizing his core businesses in bankruptcy court.
Of all of Glendale’s issues, only one, the proposed Tohono O'odham casino, is a potential revenue generator.
I believe the ultimate solution to all of these problems may in some way include revenue from the proposed Indian casino in Glendale. That's how Pittsburgh solved their arena problem. I could never understand why Glendale would not embrace a project that would create jobs and add excitement to the 101 corridor but I do know that money is the mother’s milk of politics. A revenue stream from a proposed casino could be the key to getting all of these disparate projects off the ground. I don’t know what form that may take but I do know the Tribe would certainly like to get building and be good local citizens. This may be their ticket to play in Glendale.
The relative quiet about the casino issue plus the clandestine nature of the Coyote negotiations suggest to me something big is going on. I wouldn’t be surprised if the NHL was briefed about negotiations when Gary Bettman and Bill Daly met with Glendale City officials two weeks ago. Glendale knows they must act to keep the team. They may in fact have already settled on a backup plan (i.e. the favored Coyotes offer) if a bigger deal cannot be struck. Remember, we are talking about politicians. They know that voters are in a firing mood right now. They want to settle this issue quickly and with the greatest possible benefit to Glendale.
The NHL has a lot of clout to wield. The “news” that the NHL can void the Glendale lease at the end of June is not a surprise to anyone who read the court filings last year. The league can’t (and won’t) carry the team forever. But here’s another one you may not have heard – the concert business at Jobing.com Arena is controlled by AEG, a major player in the NHL. AEG owns the Los Angeles Kings and Staples Center. Healthy concert revenue is the one bright spot in the arena’s business plan. Pull the plug on that relationship and Glendale has a building on their hands destined to become a very large warehouse. AEG has a nice fallback in the US Air Center if they ever decided to move their concert business.
Perhaps the most interesting morsel over the last few days came with Ice Edge hiring former Arizona Attorney General Grant Woods to finalize a new lease agreement with the city of Glendale. Woods is a skilled and experienced politician. He’s also highly respected around town. His presence on the Ice Edge team may neutralize any advantage that lobbyist John Kaites provided to the Reinsdorf group. Remember one thing about Ice Edge -- they are very serious.
And remember what we have previously told you. An NHL team executive told me that Ice Edge has the money to do the deal. “Plenty of money” was the exact quote. And from what we’ve read, they apparently have financing lined up from international powerhouse Deutsch Bank to finance the ongoing operation.
Winnipeg? I love the enthusiasm of hockey fans and I truly regret their loss but Winnipeg isn’t the NHL’s first choice to gain a new team. People seem to forget that the Jets were not particularly profitable either. Exactly three years out of 17 in the NHL. They left Winnipeg for a reason. The NHL has serious concerns about the ability of Winnipeg and Quebec City to return to the NHL because both cities do not have enough industry to produce the corporate support and sponsorships necessary for profitability. A second Toronto area team is far more likely to be added.
So as the off-ice issues continue to play out, we finally get to experience a playoff hockey game at the Job. That will be an extraordinary sight. We do know that the upper levels of the arena are essentially sold out for the first round of the playoffs and total ticket sales are around 12,000 per game. Once the dates are finalized and an opponent is known, I expect the demand for tickets will explode. We’ll be back with more insight on the playoffs once we know who the Coyotes will be playing.
And we’ll be watching the off-ice battles with the same tense anticipation.
From day one, we have contended both here and on our frequent calls to sports talk radio that sooner or later, Glendale will have to come forward with lease accommodations or the Coyotes will leave town. Now it’s not only playoff talk that’s heating up. The negotiations to sell the Coyotes have reached a critical stage. Expect news, perhaps big news, in the next few days.
There is a lot of pressure on the Glendale City Council. The Coyotes have become the hot team in town in recent weeks, with their tremendous regular season culminating in a playoff spot. What’s more, as long predicted, the city is responding to the team. Crowds are building. It seems like Coyotes players are everywhere on radio and television. Even chronically disinterested sportscasters like Dave Byrnes and Bob Kemp are starting to pay attention.
The Glendale City Council heard proposals from both groups on Tuesday. No action was taken. There’s been talk that the City is stalling to let Jerry Reinsdorf’s group further their negotiations but little solid proof that is the case. Reinsdorf’s insistence on some kind of an out clause could be a deal breaker for the city.
And while the Coyotes future is the most time sensitive issue, there are a lot of moving parts in Glendale right now. And most of them are moving in the wrong direction. The city continues to fight the Tohono O'odham Indian Nation over their plans to build a casino a mile north of Westgate. Construction has not yet started on the USA basketball development center. And the city’s Main Street development, which is intended to pay for much of the City’s Camelback Ranch debt, has been delayed by financing issues.
Now it doesn’t take a genius to figure out that a) the fate of the Coyotes, b) the construction of the basketball center and c) the lack of the Main Street development to pay for Camelback Ranch all have the potential to be revenue drains on the city. Big revenue drains. At a time where cities are scrambling to keep police and firemen on the street, it’s a litany of issues that Glendale doesn’t need.
The financial issues of car wash entrepreneur Danny Hendon haven’t helped either. Hendon had signed on to the Ice Edge group as an investor and was one of the lead players in financing the Main Street development. He and his money are occupied right now reorganizing his core businesses in bankruptcy court.
Of all of Glendale’s issues, only one, the proposed Tohono O'odham casino, is a potential revenue generator.
I believe the ultimate solution to all of these problems may in some way include revenue from the proposed Indian casino in Glendale. That's how Pittsburgh solved their arena problem. I could never understand why Glendale would not embrace a project that would create jobs and add excitement to the 101 corridor but I do know that money is the mother’s milk of politics. A revenue stream from a proposed casino could be the key to getting all of these disparate projects off the ground. I don’t know what form that may take but I do know the Tribe would certainly like to get building and be good local citizens. This may be their ticket to play in Glendale.
The relative quiet about the casino issue plus the clandestine nature of the Coyote negotiations suggest to me something big is going on. I wouldn’t be surprised if the NHL was briefed about negotiations when Gary Bettman and Bill Daly met with Glendale City officials two weeks ago. Glendale knows they must act to keep the team. They may in fact have already settled on a backup plan (i.e. the favored Coyotes offer) if a bigger deal cannot be struck. Remember, we are talking about politicians. They know that voters are in a firing mood right now. They want to settle this issue quickly and with the greatest possible benefit to Glendale.
The NHL has a lot of clout to wield. The “news” that the NHL can void the Glendale lease at the end of June is not a surprise to anyone who read the court filings last year. The league can’t (and won’t) carry the team forever. But here’s another one you may not have heard – the concert business at Jobing.com Arena is controlled by AEG, a major player in the NHL. AEG owns the Los Angeles Kings and Staples Center. Healthy concert revenue is the one bright spot in the arena’s business plan. Pull the plug on that relationship and Glendale has a building on their hands destined to become a very large warehouse. AEG has a nice fallback in the US Air Center if they ever decided to move their concert business.
Perhaps the most interesting morsel over the last few days came with Ice Edge hiring former Arizona Attorney General Grant Woods to finalize a new lease agreement with the city of Glendale. Woods is a skilled and experienced politician. He’s also highly respected around town. His presence on the Ice Edge team may neutralize any advantage that lobbyist John Kaites provided to the Reinsdorf group. Remember one thing about Ice Edge -- they are very serious.
And remember what we have previously told you. An NHL team executive told me that Ice Edge has the money to do the deal. “Plenty of money” was the exact quote. And from what we’ve read, they apparently have financing lined up from international powerhouse Deutsch Bank to finance the ongoing operation.
Winnipeg? I love the enthusiasm of hockey fans and I truly regret their loss but Winnipeg isn’t the NHL’s first choice to gain a new team. People seem to forget that the Jets were not particularly profitable either. Exactly three years out of 17 in the NHL. They left Winnipeg for a reason. The NHL has serious concerns about the ability of Winnipeg and Quebec City to return to the NHL because both cities do not have enough industry to produce the corporate support and sponsorships necessary for profitability. A second Toronto area team is far more likely to be added.
So as the off-ice issues continue to play out, we finally get to experience a playoff hockey game at the Job. That will be an extraordinary sight. We do know that the upper levels of the arena are essentially sold out for the first round of the playoffs and total ticket sales are around 12,000 per game. Once the dates are finalized and an opponent is known, I expect the demand for tickets will explode. We’ll be back with more insight on the playoffs once we know who the Coyotes will be playing.
And we’ll be watching the off-ice battles with the same tense anticipation.
Sunday, February 28, 2010
The Olympics, The Coyotes, The Trade Deadline, Ice Edge Holdings and a "No-Show Joe" Update
Today was a glorious day for hockey.
Much like 1980, there are dynamics that can never be duplicated. Canada on home ice. The upstart, overachieving US team. A one game winner take all. Sudden death overtime. And the backdrop of a glorious Olympic tournament. What a game. What a moment for hockey.
And for once NBC did the right thing by going live in all time zones with Olympic coverage. The US ratings will be huge, perhaps the best ever for a hockey game. And the resulting interest will help every level of the sport.
The winner today was hockey. For those of us who have loved the game for so many years, it was great to see our sport honored. And for those just joining us, there’s plenty of room (and beer) on the bandwagon. Hang on, it’s a great ride.
Now about those amazing Coyotes...
How can you not be impressed with this team? With 19 games left in the regular season, the Yotes have 79 points. That’s about 20 points better than you could have gotten odds on last October.
No one thing better illustrates the turnaround than the playoff ticket packages that were mailed to season tickets holders last week. Boy did they look good.
In late December we suggested that the Coyotes needed to be around 70 points by the end of January to be in position to reach the playoffs. That observation was based on an unfavorable home schedule beginning January 31st (just a small part of the mismanagement of the team) of 17 road games against 10 home games.
In January, the Coyotes experienced their most difficult stretch of the season. The Yotes went 4-5-1 and it started to look like the clock may have struck midnight.
Well, there’s nothing like a good road trip to end that conversation. After a late January win in Detroit, the Coyotes left Phoenix on January 30 with 69 points and went back on the road and won in Dallas, Nashville and Chicago. The first two teams are fighting for playoff spots and the Hawks have been among the elite in the NHL this year. It was a glorious trip that vaulted the Yotes into 4th place in the Western Conference and solidified their playoff standing.
Ilya Bryzgalov has been the team’s MVP and after a little rough stretch in January, he has snapped back to form. The Coyotes will need him down the stretch. With 79 points in the bank and 19 games remaining a .500 record will get the team into the playoffs. But now, with a playoff spot squarely in the crosshairs, the team is thinking bigger. Home ice in a 4-5 series against either Los Angeles or Colorado is a real possibility. With a sharp Bryzgalov, the team has a chance to gain home ice in the first round of the playoffs and gain a favorable first round matchup.
The NHL trade deadline approaches...
The Olympics have ended and at midnight the NHL reopens for trading. There will be 63hours until the deadline for deals at 3PM Eastern on Wednesday.
Now the spotlight will shift towards Don Maloney to see what he does to strengthen the team for a playoff run. Maloney had two commodities that most general managers don't have -- salary cap space and excess assets in the form of players not currently in the NHL and additional draft choices obtained in prior trades. For the first time in recent memory, the Coyotes will be buyers at the deadline. Maloney's shopping list will likely include a scoring forward and a depth defenseman.
Maloney was interviewed on a New York Rangers television broadcast before the break and he said that any moves the Coyotes make the balance of the year will be dollar for dollar moves. It will require some creative bookkeeping and ingenuity from GMDM to add the scoring he desperately needs as well as the 7th defenseman he craves.
Looking up and down the Coyotes roster, there’s really not many veterans the team would be willing to move. Kevin Porter is still a borderline prospect who might interest some teams. And we’ve heard that that former first draft choice Chris Summers hasn’t developed at Michigan as much as the Coyotes had hoped and might be available. There is plenty of additional salary in the Coyotes farm system that could be packaged with valuable assets to bring back reinforcements for the playoff push.
I don’t put much stock in Peter Mueller trade rumors. Mules has played much better in the last month and filled in capably when Scottie Upshall went down for the season with a torn ACL. The window for trading Mueller is probably past.
So what does all this mean? The Coyotes will probably have to package some useful assets (draft picks and unsigned players) with some dead wood salary to bring back a scorer. It would also be helpful if they were dealing with a team that has some financial flexibility. And Maloney doesn’t want to offer too many assets for a pure rental who has no interest in resigning in Phoenix.
All of which points to Toronto. The Leafs are in the middle of a full scale housecleaning and have made it clear that pretty much everyone is available. One player who might interest the Coyotes is Alexei Ponikarovsky. He’s a 29 year old center with a big body who is headed to a career best season with 19 goals and 40 points in 57 games. He has a $2.1MM cap hit and will be an unrestricted free agent at the end of the season.
Toronto needs draft picks to replenish the ones they traded to Boston for Phil Kessel as well as young players. It also helps that Don Maloney and Brian Burke are close friends. Toronto is the leagues richest franchise and can also bury money in the minor leagues to balance a deal. Porter, a salary and a draft pick (probably a 2nd) could bring Alexei to Phoenix. It makes sense because the Coyotes could use another center. In this scenario, Matt Lombardi might permanently swing outside, where he has played well.
And there’s a bonus with Ponikarovsky. While he’ll be an unrestricted free agent this summer, he could be a candidate to stay with the Coyotes. He will likely command a contract that will be in the Coyotes price range. If he likes it in Phoenix, he may be here longer than the average tenure of a rental.
There’s another target that would make even more sense – Keith Tkachuk. With history in Phoenix, not only could he help the team on the ice, he could also sell some tickets. That’s a nice bonus for a team still struggling at the gate. Tkachuk’s base salary is $2.1MM and he has $400K in bonuses available. The same package might interest St. Louis, which a team that is still wavering between being buyer and seller. If the Blues decide to be sellers, Tkachuk will almost certainly be moved somewhere. Tkachuk might not be available to play for a week due to a broken finger but he would add size, versatility and some pizzazz to the Coyotes. He is also a local name brand who could help sell a few tickets.
If Maloney can’t land a big fish, he’ll probably opt for a veteran player with playoff experience. Preferably one who can score a few goals and add depth to a veteran team. Two names to keep in mind are Carolina defenseman Aaron Ward and Atlanta Thrashers forward Colby Armstrong.
And finally…whatever happened to Ice Edge Holdings?
You remember Ice Edge? They signed a 30 day letter of intent to purchase the Coyotes 75 days ago.
I can’t often say I’ve spoken directly to Gary Bettman about an issue, but I can on this one. You see, I called his XM radio show a couple of weeks ago and asked what was going on with Ice Edge.
Bettman’s (very cool) reply? “These deals take time”. He went on to say that even though it was a 30 day letter of intent, “we have not set a deadline for closing the deal.” I tried to ask a follow up question but was cut off mid-question. Bettman and E.J. Hradek sounded a little sheepish about cutting me off however there was no additional discussion or clarification. It seemed to me that Bettman was not very interested in talking about Ice Edge.
His tone didn’t leave me with a warm fuzzy feeling.
There are three compelling reasons that a deal needs to be done soon. The first is that once the playoffs arrive, the Coyotes front office be starting work on next season. That can’t happen soon enough. The playoffs offer a tremendous opportunity to sell season tickets and sponsorships. Another lost summer would doom the franchise. The new ownership needs to be in place to allow fans and sponsors to buy with confidence.
The second and third reasons are Matthew Lombardi and Zbynek Michalek. Both are unrestricted free agents and both are vital parts of the Coyotes. Both will require a minimum three year commitment at least $3MM per year. That will need to come from new ownership.
Possible deal hang ups? There are 3 – long term financing of the group, the arena lease and the whole Saskatoon deal.
Ice Edge has the upfront money to close the purchase. The perspective owners have committed 90% of the purchase price in cash. I was told by an executive of another team that they have plenty of cash. What they may not have is the wherewithal to sustain large losses over a long period of time.
No one expects the Coyotes and the arena to start making money next year. There will be losses. The anticipated magnitude of the losses and the funding necessary to cover them greatly concerns the league. Having the dough in place to cover those losses is part of the greens fees for any purchase to be approved. The league has a number in mind and Ice Edge will have to satisfy the league they can absorb losses over a long enough period to outlive the recession and turn the profitability of the entity around.
One of the things that will help is a new lease arrangement with the City of Glendale. There has been a lot of rustling that indicates conversations are ongoing but secrecy has been the order of the day. You would like to think that something will be done soon here but until a deal is announced one has to withhold judgment.
And about Saskatoon, most people around the NHL agree that a five game package is not going to be approved by the league. We’ve suggested a more modest three game package might gain favor as a trial but there’s not a great appetite to split the schedule. That’s too bad because a few other NHL teams could benefit from a sister city program. If Saskatoon is off the table, you are looking at an additional $5MM in loss projections. Ice Edge is almost certainly looking to line up additional financing.
One way or another, this deal needs to be put to bed soon. Best case, done deal. Worst case, the team goes back on the market in time to entice new owners when the very exciting playoffs are going on.
Oh…and in case you were interested about how No-Show Joe did at the Olympics?
1 Goal in 7 games and a -1 for Thornton as a member of the gold medal winning Canadian team. The only Canadian forward who produced less was the lightly used Patrice Bergeron. As predicted here. Typical of his big game record.
He should package up his gold medal and send it to Shane Doan.
Much like 1980, there are dynamics that can never be duplicated. Canada on home ice. The upstart, overachieving US team. A one game winner take all. Sudden death overtime. And the backdrop of a glorious Olympic tournament. What a game. What a moment for hockey.
And for once NBC did the right thing by going live in all time zones with Olympic coverage. The US ratings will be huge, perhaps the best ever for a hockey game. And the resulting interest will help every level of the sport.
The winner today was hockey. For those of us who have loved the game for so many years, it was great to see our sport honored. And for those just joining us, there’s plenty of room (and beer) on the bandwagon. Hang on, it’s a great ride.
Now about those amazing Coyotes...
How can you not be impressed with this team? With 19 games left in the regular season, the Yotes have 79 points. That’s about 20 points better than you could have gotten odds on last October.
No one thing better illustrates the turnaround than the playoff ticket packages that were mailed to season tickets holders last week. Boy did they look good.
In late December we suggested that the Coyotes needed to be around 70 points by the end of January to be in position to reach the playoffs. That observation was based on an unfavorable home schedule beginning January 31st (just a small part of the mismanagement of the team) of 17 road games against 10 home games.
In January, the Coyotes experienced their most difficult stretch of the season. The Yotes went 4-5-1 and it started to look like the clock may have struck midnight.
Well, there’s nothing like a good road trip to end that conversation. After a late January win in Detroit, the Coyotes left Phoenix on January 30 with 69 points and went back on the road and won in Dallas, Nashville and Chicago. The first two teams are fighting for playoff spots and the Hawks have been among the elite in the NHL this year. It was a glorious trip that vaulted the Yotes into 4th place in the Western Conference and solidified their playoff standing.
Ilya Bryzgalov has been the team’s MVP and after a little rough stretch in January, he has snapped back to form. The Coyotes will need him down the stretch. With 79 points in the bank and 19 games remaining a .500 record will get the team into the playoffs. But now, with a playoff spot squarely in the crosshairs, the team is thinking bigger. Home ice in a 4-5 series against either Los Angeles or Colorado is a real possibility. With a sharp Bryzgalov, the team has a chance to gain home ice in the first round of the playoffs and gain a favorable first round matchup.
The NHL trade deadline approaches...
The Olympics have ended and at midnight the NHL reopens for trading. There will be 63hours until the deadline for deals at 3PM Eastern on Wednesday.
Now the spotlight will shift towards Don Maloney to see what he does to strengthen the team for a playoff run. Maloney had two commodities that most general managers don't have -- salary cap space and excess assets in the form of players not currently in the NHL and additional draft choices obtained in prior trades. For the first time in recent memory, the Coyotes will be buyers at the deadline. Maloney's shopping list will likely include a scoring forward and a depth defenseman.
Maloney was interviewed on a New York Rangers television broadcast before the break and he said that any moves the Coyotes make the balance of the year will be dollar for dollar moves. It will require some creative bookkeeping and ingenuity from GMDM to add the scoring he desperately needs as well as the 7th defenseman he craves.
Looking up and down the Coyotes roster, there’s really not many veterans the team would be willing to move. Kevin Porter is still a borderline prospect who might interest some teams. And we’ve heard that that former first draft choice Chris Summers hasn’t developed at Michigan as much as the Coyotes had hoped and might be available. There is plenty of additional salary in the Coyotes farm system that could be packaged with valuable assets to bring back reinforcements for the playoff push.
I don’t put much stock in Peter Mueller trade rumors. Mules has played much better in the last month and filled in capably when Scottie Upshall went down for the season with a torn ACL. The window for trading Mueller is probably past.
So what does all this mean? The Coyotes will probably have to package some useful assets (draft picks and unsigned players) with some dead wood salary to bring back a scorer. It would also be helpful if they were dealing with a team that has some financial flexibility. And Maloney doesn’t want to offer too many assets for a pure rental who has no interest in resigning in Phoenix.
All of which points to Toronto. The Leafs are in the middle of a full scale housecleaning and have made it clear that pretty much everyone is available. One player who might interest the Coyotes is Alexei Ponikarovsky. He’s a 29 year old center with a big body who is headed to a career best season with 19 goals and 40 points in 57 games. He has a $2.1MM cap hit and will be an unrestricted free agent at the end of the season.
Toronto needs draft picks to replenish the ones they traded to Boston for Phil Kessel as well as young players. It also helps that Don Maloney and Brian Burke are close friends. Toronto is the leagues richest franchise and can also bury money in the minor leagues to balance a deal. Porter, a salary and a draft pick (probably a 2nd) could bring Alexei to Phoenix. It makes sense because the Coyotes could use another center. In this scenario, Matt Lombardi might permanently swing outside, where he has played well.
And there’s a bonus with Ponikarovsky. While he’ll be an unrestricted free agent this summer, he could be a candidate to stay with the Coyotes. He will likely command a contract that will be in the Coyotes price range. If he likes it in Phoenix, he may be here longer than the average tenure of a rental.
There’s another target that would make even more sense – Keith Tkachuk. With history in Phoenix, not only could he help the team on the ice, he could also sell some tickets. That’s a nice bonus for a team still struggling at the gate. Tkachuk’s base salary is $2.1MM and he has $400K in bonuses available. The same package might interest St. Louis, which a team that is still wavering between being buyer and seller. If the Blues decide to be sellers, Tkachuk will almost certainly be moved somewhere. Tkachuk might not be available to play for a week due to a broken finger but he would add size, versatility and some pizzazz to the Coyotes. He is also a local name brand who could help sell a few tickets.
If Maloney can’t land a big fish, he’ll probably opt for a veteran player with playoff experience. Preferably one who can score a few goals and add depth to a veteran team. Two names to keep in mind are Carolina defenseman Aaron Ward and Atlanta Thrashers forward Colby Armstrong.
And finally…whatever happened to Ice Edge Holdings?
You remember Ice Edge? They signed a 30 day letter of intent to purchase the Coyotes 75 days ago.
I can’t often say I’ve spoken directly to Gary Bettman about an issue, but I can on this one. You see, I called his XM radio show a couple of weeks ago and asked what was going on with Ice Edge.
Bettman’s (very cool) reply? “These deals take time”. He went on to say that even though it was a 30 day letter of intent, “we have not set a deadline for closing the deal.” I tried to ask a follow up question but was cut off mid-question. Bettman and E.J. Hradek sounded a little sheepish about cutting me off however there was no additional discussion or clarification. It seemed to me that Bettman was not very interested in talking about Ice Edge.
His tone didn’t leave me with a warm fuzzy feeling.
There are three compelling reasons that a deal needs to be done soon. The first is that once the playoffs arrive, the Coyotes front office be starting work on next season. That can’t happen soon enough. The playoffs offer a tremendous opportunity to sell season tickets and sponsorships. Another lost summer would doom the franchise. The new ownership needs to be in place to allow fans and sponsors to buy with confidence.
The second and third reasons are Matthew Lombardi and Zbynek Michalek. Both are unrestricted free agents and both are vital parts of the Coyotes. Both will require a minimum three year commitment at least $3MM per year. That will need to come from new ownership.
Possible deal hang ups? There are 3 – long term financing of the group, the arena lease and the whole Saskatoon deal.
Ice Edge has the upfront money to close the purchase. The perspective owners have committed 90% of the purchase price in cash. I was told by an executive of another team that they have plenty of cash. What they may not have is the wherewithal to sustain large losses over a long period of time.
No one expects the Coyotes and the arena to start making money next year. There will be losses. The anticipated magnitude of the losses and the funding necessary to cover them greatly concerns the league. Having the dough in place to cover those losses is part of the greens fees for any purchase to be approved. The league has a number in mind and Ice Edge will have to satisfy the league they can absorb losses over a long enough period to outlive the recession and turn the profitability of the entity around.
One of the things that will help is a new lease arrangement with the City of Glendale. There has been a lot of rustling that indicates conversations are ongoing but secrecy has been the order of the day. You would like to think that something will be done soon here but until a deal is announced one has to withhold judgment.
And about Saskatoon, most people around the NHL agree that a five game package is not going to be approved by the league. We’ve suggested a more modest three game package might gain favor as a trial but there’s not a great appetite to split the schedule. That’s too bad because a few other NHL teams could benefit from a sister city program. If Saskatoon is off the table, you are looking at an additional $5MM in loss projections. Ice Edge is almost certainly looking to line up additional financing.
One way or another, this deal needs to be put to bed soon. Best case, done deal. Worst case, the team goes back on the market in time to entice new owners when the very exciting playoffs are going on.
Oh…and in case you were interested about how No-Show Joe did at the Olympics?
1 Goal in 7 games and a -1 for Thornton as a member of the gold medal winning Canadian team. The only Canadian forward who produced less was the lightly used Patrice Bergeron. As predicted here. Typical of his big game record.
He should package up his gold medal and send it to Shane Doan.
Thursday, December 17, 2009
The Road Ahead Part 2
There's relief in the air in Coyoteland. The NHL and Ice Edge Holdings have signed a letter of intent for the purchase of the troubled franchise. It's far from a done deal, but it's a great sign that the Coyotes will be staying in Arizona, hopefully for many years to come.
For several months the league seemed to be cool on the Ice Edge proposal. We know that Ice Edge kicked the tires on the Florida Panthers prior to developing an interest in the Coyotes. The Saskatoon option (and why isn't it the Winnipeg option?) was a head scratcher when it first was reported and some Canadian media dismissed the group as less than stout financially. The NHL seemed far more interested in promoting the Jerry Reinsdorf solution for the Coyotes. When that option evaporated, the persistent Ice Edge group was able to cut a deal with the NHL.
We're not exactly sure why the NHL was slow to embrace Ice Edge but it may have to do with financing plans that are unorthodox or unusual. And there's sure to be some concern about the Saskatoon deal. We'll find out more as the vetting process goes on.
That process will also tell us about how deep the Ice Edge pockets are. While IE is saying all the right things about not even thinking about losses, it's going to take a while to turn this battleship around. The concern if the league likely centers around how much money the group is prepared to lose to sustain losses through what will be a tough transition.
There are some facts emerging about Ice Edge Holdings that will be great comfort to Arizona hockey fans.
For starters, the letter of intent has a 30 day expiration. That puts pressure on the group, the City of Glendale and the NHL to get a deal done quickly. The NHL desperately wants/needs to get the Coyotes off the books as soon as possible. The City needs to put this ugly story to bed and the sooner a definitive sale agreement is signed, the league can conduct their due diligence and move towards approving the sale.
Ice Edge is apparently putting up 90% of the purchase price of the team in cash. While the team will most certainly have a line of credit and likely will be looking at significant short term losses, they will be spared the crushing debt service that handcuffed the Moyes ownership.
And perhaps most importantly, these guys have apparently have money. Lots of it. It was a question early on but apparently it is in the process of being answered. In fact an official from another NHL team told me this week they are better equipped financially than many other teams in the league. After the early concern about the wherewithal of the group, this comes as a pleasant and welcome surprise.
Ice Edge takes over an organization that a Phoenix sports executive from another team told me was bloated. By ways of comparison, the healthier Suns have a much leaner team and arena organization than the Coyotes. That will likely change under new management.
And that cost savings, along with the elimination of debt service and whatever concessions Glendale brings to the table will put this franchise on the road to financial respectability. No it won't solve all the financial problems but it's a big start.
The whole Saskatoon thing remains a mystery. Apparently the City is willing to let a few games go as part of the Ice Edge plan to ease cash concerns. Whether the league and the players association will agree is another matter. There's some skepticism on both sides that could derail the plan. Our guess? Perhaps a scaled back plan (say 3 games vs. the Western Canada teams) would be tolerable at least as a test. And hopefully in a couple of years, the Arizona franchise will be healthy enough to make this a non-factor.
There's much good to be found here. Introducing a new ownership team will give doubting local fans confidence to begin supporting the team. And they will come back to find a team that is in the thick of playoff contention and vastly improved over previous seasons. There is nothing that will turn this area on to hockey quicker than playoff hockey.
I was in the stands a few years ago when the Anaheim Ducks won their first ever playoff series. It was an extraordinary experience. Fans were crying, because not only had the team made the playoffs come back to Orange County but because the team found a way to win a series. The excitement translated into season ticket sales -- 4,000 new tickets in one season.
It could happen here. It would be an extraordinary conclusion to a bizarre year. And it would be enough to leave more than a few people crying in the stands.
For several months the league seemed to be cool on the Ice Edge proposal. We know that Ice Edge kicked the tires on the Florida Panthers prior to developing an interest in the Coyotes. The Saskatoon option (and why isn't it the Winnipeg option?) was a head scratcher when it first was reported and some Canadian media dismissed the group as less than stout financially. The NHL seemed far more interested in promoting the Jerry Reinsdorf solution for the Coyotes. When that option evaporated, the persistent Ice Edge group was able to cut a deal with the NHL.
We're not exactly sure why the NHL was slow to embrace Ice Edge but it may have to do with financing plans that are unorthodox or unusual. And there's sure to be some concern about the Saskatoon deal. We'll find out more as the vetting process goes on.
That process will also tell us about how deep the Ice Edge pockets are. While IE is saying all the right things about not even thinking about losses, it's going to take a while to turn this battleship around. The concern if the league likely centers around how much money the group is prepared to lose to sustain losses through what will be a tough transition.
There are some facts emerging about Ice Edge Holdings that will be great comfort to Arizona hockey fans.
For starters, the letter of intent has a 30 day expiration. That puts pressure on the group, the City of Glendale and the NHL to get a deal done quickly. The NHL desperately wants/needs to get the Coyotes off the books as soon as possible. The City needs to put this ugly story to bed and the sooner a definitive sale agreement is signed, the league can conduct their due diligence and move towards approving the sale.
Ice Edge is apparently putting up 90% of the purchase price of the team in cash. While the team will most certainly have a line of credit and likely will be looking at significant short term losses, they will be spared the crushing debt service that handcuffed the Moyes ownership.
And perhaps most importantly, these guys have apparently have money. Lots of it. It was a question early on but apparently it is in the process of being answered. In fact an official from another NHL team told me this week they are better equipped financially than many other teams in the league. After the early concern about the wherewithal of the group, this comes as a pleasant and welcome surprise.
Ice Edge takes over an organization that a Phoenix sports executive from another team told me was bloated. By ways of comparison, the healthier Suns have a much leaner team and arena organization than the Coyotes. That will likely change under new management.
And that cost savings, along with the elimination of debt service and whatever concessions Glendale brings to the table will put this franchise on the road to financial respectability. No it won't solve all the financial problems but it's a big start.
The whole Saskatoon thing remains a mystery. Apparently the City is willing to let a few games go as part of the Ice Edge plan to ease cash concerns. Whether the league and the players association will agree is another matter. There's some skepticism on both sides that could derail the plan. Our guess? Perhaps a scaled back plan (say 3 games vs. the Western Canada teams) would be tolerable at least as a test. And hopefully in a couple of years, the Arizona franchise will be healthy enough to make this a non-factor.
There's much good to be found here. Introducing a new ownership team will give doubting local fans confidence to begin supporting the team. And they will come back to find a team that is in the thick of playoff contention and vastly improved over previous seasons. There is nothing that will turn this area on to hockey quicker than playoff hockey.
I was in the stands a few years ago when the Anaheim Ducks won their first ever playoff series. It was an extraordinary experience. Fans were crying, because not only had the team made the playoffs come back to Orange County but because the team found a way to win a series. The excitement translated into season ticket sales -- 4,000 new tickets in one season.
It could happen here. It would be an extraordinary conclusion to a bizarre year. And it would be enough to leave more than a few people crying in the stands.
Tuesday, October 27, 2009
Moyes Throws In The Towel
When Judge Tom tossed Jim Balsilie's bid for the Coyotes, the die was cast. If a potential suitor was not going to be allowed to buy and move the Coyotes, then the NHL would end up with the team. No one was about to bid against the league since the NHL would ultimately have to bless the new owners of the team.
So at the end of the day, Moyes cut his substantial losses and went home. If he had good legal counsel and got frank advice, he knew back in May that the bankruptcy and sale to Balsillie was a longshot. When you are looking at a $100MM haircut (on top of $100MM already sunk) and you have a certain Canadian gadfly ready to foot the legal bills, why not give it a shot?
He shot, and he missed. Hey, that's hockey.
There's a very pragmatic part of how the NHL has been funding the franchise. Technically, it's a secured loan to the "estate". The NHL has been fronting the cash but protected their interests by being a secured creditor. Translation? The costs of running the Coyotes until the sale is complete are being absorbed by the "estate". The money the league is spending for the franchise is partly to pay off the secured loans the league has been making to the team to keep the franchise operating. With the dollars available to Moyes dropping with each payroll, he finally decided to cut bait and close the deal.
So now, once a few more legal loose ends are cleaned up, the NHL will be the new owners of the Coyotes. And paying the bills with their money. Then the real sale process will take shape.
The anticipation is that the league wants to flip the franchise quickly. Most observers believe that the team will not have much of a chance of reversing attendance losses until new committed owners are in place.
But there are two issues yet to emerge. One is the asking price for the franchise. $140-150MM was a nice bankruptcy price. It was also the approximate price that Team Reinsdorf was willing to pay for the team in May. It may not be the league's asking price. And that could present a problem locating new owners. There's also a question about what the league's timeline for selling the team will look like.
I'd like to think that Gary Bettman and Bill Daly have been honest and forthright in their declarations that they intend to sell the team to owners who will keep the team in Phoenix. And they know full well that new owners will be looking at a minimum loss of $50MM before they can even think about righting the ship.
The last two warm weather teams to change hands were Nashville for $193MM and Tampa Bay at $200MM. Owners like to keep the price of teams inflated. A rising tide raises all ships, you know. We'll be curious to see if the league expects that kind of money for the troubled Coyotes or will be happy to recoup their $14o investment in the team..
Ice Edge Holdings continues to be a visible and aggressive suitor for the franchise. TV cameras were quick to pick up the ownership group sitting with Gary Bettman at Monday's Coyote-Ranger game. Ice Edge executives have an agreement in principal in place with the City of Glendale and seem to be trying to do things the right way. Unlike you know who.
The concern and caution is a) the asking price and b) the wherewithal of the group. If the NHL is content recouping their $140MM investment and Ice Edge has another $50-100MM ready for operating costs, they will be a strong contender to get the team. They could also be the only contender. It's expected that Jerry Reinsdorf and friends will reappear at some point and get in the bidding but that's not a sure thing. And while there may be others who will appreciate that the team can be purchased directly from the league without legal encumberments, there are no guarantees.
"Ice Edge isn't the only horse in the race," Daly wrote in an email yesterday to Sean Fitz-Gerald of The (Canadian) National Post. But Daly didn't name any other potential buyers.
It's also been reported that Wayne Gretzky isn't pleased that his interests haven't been addressed. That's unfortunate. While money is important, hockey's living legend deserves better treatment. Gretzky's approval is not required for the sale of the team to close but his interests go far beyond the dollars at stake. This is a fence that the league needs to mend and mend quicklky. With all other secured and unsecured creditors on board, his objections may not be enough to stop the deal.
So let the bankruptcy sale be closed and let the bidding begin. Soon.
The quicker something happens, and the sooner committed new owners are in place, the faster the NHL can look for a real turnaround for our home team.
And that can't happen soon enough.
So at the end of the day, Moyes cut his substantial losses and went home. If he had good legal counsel and got frank advice, he knew back in May that the bankruptcy and sale to Balsillie was a longshot. When you are looking at a $100MM haircut (on top of $100MM already sunk) and you have a certain Canadian gadfly ready to foot the legal bills, why not give it a shot?
He shot, and he missed. Hey, that's hockey.
There's a very pragmatic part of how the NHL has been funding the franchise. Technically, it's a secured loan to the "estate". The NHL has been fronting the cash but protected their interests by being a secured creditor. Translation? The costs of running the Coyotes until the sale is complete are being absorbed by the "estate". The money the league is spending for the franchise is partly to pay off the secured loans the league has been making to the team to keep the franchise operating. With the dollars available to Moyes dropping with each payroll, he finally decided to cut bait and close the deal.
So now, once a few more legal loose ends are cleaned up, the NHL will be the new owners of the Coyotes. And paying the bills with their money. Then the real sale process will take shape.
The anticipation is that the league wants to flip the franchise quickly. Most observers believe that the team will not have much of a chance of reversing attendance losses until new committed owners are in place.
But there are two issues yet to emerge. One is the asking price for the franchise. $140-150MM was a nice bankruptcy price. It was also the approximate price that Team Reinsdorf was willing to pay for the team in May. It may not be the league's asking price. And that could present a problem locating new owners. There's also a question about what the league's timeline for selling the team will look like.
I'd like to think that Gary Bettman and Bill Daly have been honest and forthright in their declarations that they intend to sell the team to owners who will keep the team in Phoenix. And they know full well that new owners will be looking at a minimum loss of $50MM before they can even think about righting the ship.
The last two warm weather teams to change hands were Nashville for $193MM and Tampa Bay at $200MM. Owners like to keep the price of teams inflated. A rising tide raises all ships, you know. We'll be curious to see if the league expects that kind of money for the troubled Coyotes or will be happy to recoup their $14o investment in the team..
Ice Edge Holdings continues to be a visible and aggressive suitor for the franchise. TV cameras were quick to pick up the ownership group sitting with Gary Bettman at Monday's Coyote-Ranger game. Ice Edge executives have an agreement in principal in place with the City of Glendale and seem to be trying to do things the right way. Unlike you know who.
The concern and caution is a) the asking price and b) the wherewithal of the group. If the NHL is content recouping their $140MM investment and Ice Edge has another $50-100MM ready for operating costs, they will be a strong contender to get the team. They could also be the only contender. It's expected that Jerry Reinsdorf and friends will reappear at some point and get in the bidding but that's not a sure thing. And while there may be others who will appreciate that the team can be purchased directly from the league without legal encumberments, there are no guarantees.
"Ice Edge isn't the only horse in the race," Daly wrote in an email yesterday to Sean Fitz-Gerald of The (Canadian) National Post. But Daly didn't name any other potential buyers.
It's also been reported that Wayne Gretzky isn't pleased that his interests haven't been addressed. That's unfortunate. While money is important, hockey's living legend deserves better treatment. Gretzky's approval is not required for the sale of the team to close but his interests go far beyond the dollars at stake. This is a fence that the league needs to mend and mend quicklky. With all other secured and unsecured creditors on board, his objections may not be enough to stop the deal.
So let the bankruptcy sale be closed and let the bidding begin. Soon.
The quicker something happens, and the sooner committed new owners are in place, the faster the NHL can look for a real turnaround for our home team.
And that can't happen soon enough.
Sunday, October 18, 2009
Big Performances, Small Crowds
Under the best of circumstances, October hockey in Phoenix is a tough sell. The weather is still warmer here than it is in the dead of summer in most places. There's plenty of sports competition from the NFL Cardinals, two state universities and the coming NBA season. Not to mention the State Fair. And there's little hockey coverage or culture to generate incremental interest in the game.
So poor attendance at the Coyotes two home games this week was not surprising. But the crowds of 6,900 and 9,100 this week were lousy even by Arizona standards.
It's already brought out the vultures in the hockey press. Bloggers and journalists in established hockey markets and across Canada are already writing the obituary for the franchise. "A ruined market"..."dead team walking"...and "only a matter of time until the Coyotes move" are some of the headlines I've read in the last few days.
Well, not so fast.
Unless someone lives in Arizona, they cannot understand the damage that was done to the franchise this summer. There was no promotion of the team. There was no corporate sales season. Most of the ticket reps have quit and many professionals have left the organization. Their positions for the most part have gone unfilled.
Since the ownership of the team has not been settled, there has been little in the way of advertising or marketing. And what there has been is off target and not creating a ripple in the market. Publicity for the team has been OK but not extraordinary.
There are still a lot of loose ends here. Some things need to happen in short order for attendance to improve.
Winning can cover a lot of problems and the Coyotes continue to perform well on the ice. Last night they beat down the defending Eastern Conference Champion Boston Bruins 4-1 in a game that wasn't as close as the score indicates. That gives the team wins over San Jose, Pittsburgh and Boston in the first two weeks of the season. Those were three of the four best teams in the NHL last year. Phoenix gets a crack at the 4th, Detroit, on Thursday night. By any measure, a great start to the season and one that has the Coyotes on top of the Pacific Division.
And the Coyotes need to continue winning. It is non negotiable if the franchise's fortunes are going to turn. The team lacks star power. In many respects they are reminiscent of the 1996 Florida Panthers, a team of journeymen who played far better than the individual parts. Coach for a month Dave Tippett and his staff have done an outstanding job putting in a tight checking system and maximizing the assets on hand. Tippett and Don Maloney are the early leaders in any discussion for coach and manager of the year in the NHL.
The next thing that needs to happen is that the ownership situation needs to be settled. There is a perceived uncertainty in the community that is not going to go away until new owners are firmly in place.
The Ice Edge group continues to make their presence known. People inside and outside of the organization are whispering that what once seemed to be long shot bid to buy the team may be closer to reality than anticipated. Much closer than has been reported in the local press. Ice Edge already has a lease agreement in place with the City of Glendale.
There's also chatter that the Jerry Reinsdorf group may resurface once the NHL gains control of the situation. They have been keeping a low profile but that has been their modus operandi since first bidding for the team. They have access to the money and the connections necessary to purchase and manage the team.
The NHL is due back in Judge Tom's court next week for a hearing on many of the loose ends still hanging from the bankruptcy. It's expected the league will shortly file an amended bid that meets the court's criteria for purchasing the team. Then it's up to the NHL to flip the team as quickly as possible to new owners. Unless the league has gotten cold feet about the Phoenix market (and wants to take on the City of Glendale in court) a quick sale is anticipated. That will allow new owners to take over and make a strong statement that the team is staying in Arizona. This is a necessary component in rebuilding the fan base. Until the door is closed on potential relocation, questions will remain and business will suffer.
The optimist in me says that both will happen. The coaching staff is using the talent on hand as well as any team in the league. The defense is mobile and active. Adrian Aucoin is living up to his billing as a minutes-eater and is a solid confident player. Keith Yandle is showing big improvement over his rookie season. And Sami Lepisto, acquired from Washington for a 5th round draft choice, has been a pleasant surprise. Combined with tight checking, it's made life relatively easy for Ilya Bryzgalov. And Ilya has been up to the challenge, backstopping the Coyotes to the best goals allowed in the league.
It all seems so simple. Ice a winning team, install new owners and management and a renewed optimism, all in place in time for the Christmas selling season. And enough progress on and off the ice to make the turnstile count a footnote rather than the story. It can happen.
And yet, just a few weeks ago it seemed so far away.
So poor attendance at the Coyotes two home games this week was not surprising. But the crowds of 6,900 and 9,100 this week were lousy even by Arizona standards.
It's already brought out the vultures in the hockey press. Bloggers and journalists in established hockey markets and across Canada are already writing the obituary for the franchise. "A ruined market"..."dead team walking"...and "only a matter of time until the Coyotes move" are some of the headlines I've read in the last few days.
Well, not so fast.
Unless someone lives in Arizona, they cannot understand the damage that was done to the franchise this summer. There was no promotion of the team. There was no corporate sales season. Most of the ticket reps have quit and many professionals have left the organization. Their positions for the most part have gone unfilled.
Since the ownership of the team has not been settled, there has been little in the way of advertising or marketing. And what there has been is off target and not creating a ripple in the market. Publicity for the team has been OK but not extraordinary.
There are still a lot of loose ends here. Some things need to happen in short order for attendance to improve.
Winning can cover a lot of problems and the Coyotes continue to perform well on the ice. Last night they beat down the defending Eastern Conference Champion Boston Bruins 4-1 in a game that wasn't as close as the score indicates. That gives the team wins over San Jose, Pittsburgh and Boston in the first two weeks of the season. Those were three of the four best teams in the NHL last year. Phoenix gets a crack at the 4th, Detroit, on Thursday night. By any measure, a great start to the season and one that has the Coyotes on top of the Pacific Division.
And the Coyotes need to continue winning. It is non negotiable if the franchise's fortunes are going to turn. The team lacks star power. In many respects they are reminiscent of the 1996 Florida Panthers, a team of journeymen who played far better than the individual parts. Coach for a month Dave Tippett and his staff have done an outstanding job putting in a tight checking system and maximizing the assets on hand. Tippett and Don Maloney are the early leaders in any discussion for coach and manager of the year in the NHL.
The next thing that needs to happen is that the ownership situation needs to be settled. There is a perceived uncertainty in the community that is not going to go away until new owners are firmly in place.
The Ice Edge group continues to make their presence known. People inside and outside of the organization are whispering that what once seemed to be long shot bid to buy the team may be closer to reality than anticipated. Much closer than has been reported in the local press. Ice Edge already has a lease agreement in place with the City of Glendale.
There's also chatter that the Jerry Reinsdorf group may resurface once the NHL gains control of the situation. They have been keeping a low profile but that has been their modus operandi since first bidding for the team. They have access to the money and the connections necessary to purchase and manage the team.
The NHL is due back in Judge Tom's court next week for a hearing on many of the loose ends still hanging from the bankruptcy. It's expected the league will shortly file an amended bid that meets the court's criteria for purchasing the team. Then it's up to the NHL to flip the team as quickly as possible to new owners. Unless the league has gotten cold feet about the Phoenix market (and wants to take on the City of Glendale in court) a quick sale is anticipated. That will allow new owners to take over and make a strong statement that the team is staying in Arizona. This is a necessary component in rebuilding the fan base. Until the door is closed on potential relocation, questions will remain and business will suffer.
The optimist in me says that both will happen. The coaching staff is using the talent on hand as well as any team in the league. The defense is mobile and active. Adrian Aucoin is living up to his billing as a minutes-eater and is a solid confident player. Keith Yandle is showing big improvement over his rookie season. And Sami Lepisto, acquired from Washington for a 5th round draft choice, has been a pleasant surprise. Combined with tight checking, it's made life relatively easy for Ilya Bryzgalov. And Ilya has been up to the challenge, backstopping the Coyotes to the best goals allowed in the league.
It all seems so simple. Ice a winning team, install new owners and management and a renewed optimism, all in place in time for the Christmas selling season. And enough progress on and off the ice to make the turnstile count a footnote rather than the story. It can happen.
And yet, just a few weeks ago it seemed so far away.
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