AZ developer Steve Ellman's proposed deal to buy the
Coyotes from Owner Richard Burke for $87M "comes with an
escape clause," according to Scutari & Rozemberg of the
ARIZONA REPUBLIC, who report that Ellman "can sell or move
the team after the 2001 season" if the planned $535M Los
Arcos redevelopment project in Scottsdale "doesn't get
built." The move would still "have to be approved" by the
NHL's Board of Governors. Meanwhile, NHL Commissioner Gary
Bettman yesterday "officially blessed" the sale of the team
to Ellman, who now "has seven weeks to come up with the cash
to close the deal." Scutari & Rozemberg report that the
deal "breathes new life" into the Los Arcos project, which
includes an 18,000-seat arena that has been approved by
Scottsdale voters twice. So far, Ellman said that his
company, Ellman Cos., has spent $28M on the plan and that
construction of the complex could begin as soon as August.
Under terms of the sale, Ellman and his group of investors
will receive a $60M loan from French bank Societe Generale,
but they "must pay" Burke $17M by June 30. Ellman, who has
already given the league a non-refundable $1M franchise fee,
must also pay $9M to the NHL commissioner's office by May
17. One sticking point in the talks was that Burke wanted
to keep control of the Coyotes' practice facility in
Scottsdale, the Cellular One Ice Den, which "turns an annual
profit of nearly" $1M. But the deal calls for Ellman to
control the complex (ARIZONA REPUBLIC, 4/19). USA TODAY's
Kevin Allen writes that Burke stepped aside after "disputes
between Burke and Ellman over how to divvy up revenue at the
[Los Arcos] project led to a delay of the hoped-for January
groundbreaking." An arena "probably won't" be ready until
the 2002-03 season (USA TODAY, 4/19).
KUDOS TO BETTMAN: In Phoenix, Bob McManaman compliments
Bettman's handling of the Coyotes sale, as "he made one of
the biggest saves of the season by working behind the scenes
to arrange the sale" in a deal "that protects the league's
long-term interest and figures to keep the NHL in [AZ] for
the long haul" (ARIZONA REPUBLIC, 4/19).
ELL-MAN OF THE HOUR: Also in Phoenix, Catherine Reagor
profiles Ellman and writes that unlike some, he "prefers
working behind the scenes" in the real estate business.
Sources close to Ellman note that he has "made plenty of
money on past deals to have much of the capital needed for
purchasing the Coyotes" (ARIZONA REPUBLIC, 4/19).
