In his effort to attract additional investors for his
$87M deal to buy the Coyotes, AZ real estate developer Steve
Ellman has been "turned down" by several of the area's
largest companies, according to Scutari & Jarman of the
ARIZONA REPUBLIC. Sources close to Ellman note that he "is
asking the firms to put up contributions ranging from" $1M
to $10M, and that companies that have "said no to a limited
partnership investment" include Salt River Project, Arizona
Public Services, US West and the Arizona Republic. However,
officials for Cox Communications, the team's TV carrier for
home games, said that the company "is negotiating with
Ellman but hasn't nailed down a deal or committed itself to
a dollar figure." Last year, Cox "contributed free TV ads
in support" of the team's election campaign for its proposed
$535M Los Arcos arena project. During the past few months
Ellman "has mailed out investment booklets to potential
investors, outlining the arena project and detailing
specifics of possible financial partnerships." So far,
Ellman has targeted "at least" ten AZ companies, including
banks, utility corporations and cable companies. Ellman has
also offered Wayne Gretzky an ownership stake in the team
and is waiting for Gretzky's decision. In addition to
trying to close the sale, Ellman "is trying to gather enough
capital to cover about" $25M in projected operating expenses
during the team's next two seasons at America West Arena.
Ellman has until next Friday to make an initial $10M payment
to outgoing Coyotes Owner Richard Burke and until June 30 to
make a $17M payment (ARIZONA REPUBLIC, 5/19).
GREAT NEWS? In Phoenix, Bob McManaman cites NHL sources
as saying that Gretzky "will likely accept Ellman's
lucrative offer to buy into the Coyotes' new ownership
group, but that Gretzky wants to be assured [Oilers GM Glen]
Sather will come aboard in a distinct executive role"
(ARIZONA REPUBLIC, 5/19).
