Has the NHL Assumed Control of the Phoenix Coyotes?

Has the struggling Phoenix Coyotes franchise come under control of the National Hockey League?

Conflicting reports seem to point in that direction; the franchise is at that point, or on the verge of being so.

Team president, Doug Moss, assured the media today that the the team is under the control of team officials.

Speculation arose Wednesday after the Glendale city manager, Ed Beasley, told The Arizona Republic that the league is running the team and has promised to reimburse the city for parking fees and security costs at Jobing.com Arena, which is located in Glendale. 

Beasley told the Republic that the league started running the team around the time the February rent payment was made.

"We are sitting down with the NHL and working confidentially with them, and the city expects to be paid in full," Beasley added.

"The bottom line is the NHL is not in control," Moss said Wednesday night. "It's not running the franchise."

"We report to [owner] Jerry Moyes. I'm dealing with things in my area, the business side, and Donnie [General Manager Don Maloney] is dealing with the hockey side."

"It's business as usual. He's preparing for the draft. I'm preparing for next year on marketing and sales."

While the NHL did not comment on the situation today, the NHLPA's executive director, Paul Kelly, said that the situation is an NHL matter.

"We have received no indication from the league that the Coyotes may not be playing in Phoenix next season," said Kelly.

In the past, Kelly has said that the union is monitoring the situation in Phoenix and that the NHL should look to Canada first if a team needs to relocate.

According to Glendale city records, the Coyotes stopped paying the city rent, parking fees, and most of its security costs at the arena in August.

Moss declined to discuss specific financial details but added, "We're up to date on the lease."

The Coyotes came to Phoenix when the Winnipeg Jets franchise moved there in 1996.

The team has not made the postseason since 2002, and has never made it past the first round.

On Dec 23, 2008, Toronto newspaper The Globe and Mail reported that the team is receiving financial assistance from the NHL in the form of advances on league revenues.

The Coyotes have pledged all of their assets to New York company SOF Investments LP to cover an estimated debt of $80 million.

The article indicated that the team has lost an estimated $200 million since 2001 and may lose $30 million this season.

It also stated that the team's majority owner Jerry Moyes' principal source of revenue, Swift Transportation, is also reported to be in financial difficulty.