My fellow NHL fans, I come to you today to alert you to an event occurring that has the potential to put a huge dent in the progress of our beloved game.
In most of the NHL, things are going pretty well. The Penguins have gone from having one foot out the door toward Kansas City, to being a premiere franchise again. The Blackhawks have gone from after thoughts to serious Stanley Cup contenders. Hell, even the Columbus Blue Jackets have been blessed with a huge influx of young talent that could propel them to prominence very soon.
This, however, is not the case in one of the nation’s biggest cities.
As some of you may be aware, the Phoenix Coyotes are in trouble. They have been averaging $30 million a year in losses since the lockout, and their current ownership situation has them plunging close to near extinction.
To quote an article on espn.com, “no one knows for certain if the Coyotes can finish out the season under the current financial climate, and at some point the specter of bankruptcy looms large.”
This is not welcome news to hockey fans. When the Winnipeg Jets moved to Phoenix in the mid-90s, the idea of warm weather hockey was still relatively new. A wave of teams were moving to greener pastures, with the Whalers and the North Stars being the main entities.
Also, teams like the Sharks, Lightning, Panthers, and Ducks came into existence to capitalize on the sport in untapped areas. With that in mind, the ownership decided that a move to Phoenix would be a good idea.
Unfortunately, it does not appear that this has worked out for the best. Owner Jerry Moyes is in deep financial trouble, as his company, Swift Transportation, is on the verge of bankruptcy, with the rising of fuel costs and the tanking economy.
His handling of the team has been ill-advised at best, with Moyes paying out of pocket for substantial financial losses for the team through a deal where the company went public that netted him a loan of $560 million from his company. Unfortunately, the money seems to be running out, and the team is in its current predicament.
This loan was made using the team’s assets as collateral, and if Moyes is forced to declare bankruptcy, the team itself won’t save him. Forbes Magazine listed the Phoenix Coyotes as the lowest-worth franchise in the league, at only $142 million.
Add this on top of the fact that the team is estimated to have lost $200 million in the seven years since Moyes bought the team in 2001, and you have a recipe for disaster.
The Coyotes are also dealing with several issues more closely related to the team itself, with attendance steadily declining during the season, and also with their current lease arrangement with the city of Glendale, where Jobing.com Arena is located.
The biggest concern currently is the parking situation. Most teams receive a substantial chunk of their revenue from parking, but the Coyotes are locked into an odd contract with the city of Glendale where they actually pay the city for parking.
We're going to send you the most entertaining Phoenix Coyotes articles, videos, and podcasts from around the web.
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