Jamison Takeover in Serious Doubt as Deal Falls Apart to Purchase Coyotes

Michael JenkinsContributor IIIJanuary 30, 2013

Jamison's deal to purchase the Coyotes looks like it is on the verge of collapse according to multiple sources
Jamison's deal to purchase the Coyotes looks like it is on the verge of collapse according to multiple sourcesChristian Petersen/Getty Images

According to multiple sources, including ESPN.com and Sports 620 KTAR Radio in Phoenix, former San Jose Sharks CEO Greg Jamison's bid to purchase the team by Thursday night's deadline has fallen apart. Sources indicate that it looks like Jamison will not be able to secure the capital to complete the purchase.

Jamison has until Thursday night to prove to the City of Glendale that he has the capital to acquire the team from the NHL to keep a sweetheart lease agreement in place that he had personally negotiated with the city this past fall. That agreement would pay his ownership group $308 million in arena management fees over 20 years ($15 million per year) as part of his takeover bid for the troubled franchise.

New City Council elections in Glendale have taken place since the agreement was signed, and many of the members of the Council have said that they will not extend the lease agreement deal. Mayor Jerry Weiers was quoted this week in the Arizona Republic as saying that he would not extend the deal "even by one second."

A new ownership group has emerged to attempt to takeover the deal, and it is said that the unnamed group has the capital in place to purchase the team. But, it is not known if the City Council would agree to the same arena management deal with this new group as it did with Jamison's group. It is highly unlikely that that would be the case, as some of the new Council members ran for office on a platform that was based on being fiscally conservative and looking to limit city spending in response to the previous Coyotes' deal that was signed.

Jamison has until tomorrow to come up with the money, despite the reports coming in this evening. It is possible that if the deal does fall through, and by all indications, it looks like it will, that the NHL will potentially consider re-locating the Coyotes as early as next season. Seattle, Quebec and Markham, Ontario have been named already as contenders to be the next home of the beleaguered team from Phoenix.