Grave business - my financial world

Efforts to complete a sale of the Phoenix Coyotes before the end of the June are proving to be challenging, with money and lease terms the main obstacles.

The two prospective owners hoping to buy the Coyotes and keep them here — Ice Edge Holdings and Jerry Reinsdorf — need to come up with the necessary cash and purchase price to make the deal with happen with the National Hockey League. The NHL bought the Coyotes in October in for $140 million. The team, which is going through Chapter 11 reorganization, is slated to lose $20 million this season, according to legal documents from the NHL.

There have been questions regarding how much cash is involved with the bid from Reinsdorf and his business partner, John Kaites. Kaites is talking to potential investors, according to mulitple sources familiar with the issue. Kaites and Reinsdorf are not commenting on their Coyotes bid.

There also have been questions about financing for Ice Edge's bid. Chief Operating Officer Daryl Jones has said the group has secured financing from an investment bank.

A source familiar with the Coyotes sale said the bidders coming up with the necessary cash and purchase price is a "massive issue" in finalizing a sale and keeping the team in the Phoenix market. If the NHL can't get a deal done by the end of June, the league will look at backup plans, possibly selling the team to an owner that would move it to another market.

On other side of the coin, Glendale needs to work out a new arena lease with the eventual buyer. That involves dealing with issues such as parking charges, lease term, penalties, prices and a possible "out" clause allowing the owner to move the team if its finances don't improve.

Ice Edge wants to play some home games in Saskatoon, Saskatchewan, and Reinsdorf would like some kind of "out" clause to sell or move the team to another market if the Coyotes' finances don't improve.

The city and NHL also must deal with Westgate City Center owner (and former Coyotes owner) Steve Ellman, who wants a stake in the team or some other compensation for new parking charges during Coyotes games. The team plays at the Glendale-owned Jobing.com Arena, which shares parking lots with Westgate, a retail center that includes restaurants and bars. The Coyotes have not previously charged for parking, and new fees could impact Westgate customer traffic and spending.

Glendale is open to parking fees, does not want to give an "out" clause, and wants a long-term lease commitment from a new owner. The City Council met with the Reinsdorf and Ice Edge camps Tuesday and asked for more information from both groups. Jones has voiced some frustration over lease negotiations dragging with Glendale.

Glendale officials won't comment on the lease deals or the Coyotes sale. The city could face a lawsuit from the Goldwater Institute, a local watchdog group, if it offers major subsidies to a new team owner.

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