Prospective Coyotes Majority Owner Steve Ellman
"claimed he declined an offer to take immediate control" of
the Coyotes with $17M in cash and a $10M note to outgoing
Owner Richard Burke, a deal that would have "meant assuming
all of the existing debt service," according to Dan Bickley
of the ARIZONA REPUBLIC. Bickley writes that "by waiting
until [Ellman] raises enough capital, it guarantees less
short-term loss and, conceivably, more wiggle room for
payroll." Additionally, the Coyotes "expect" season-ticket
sales "to approach" 11,000 before the season begins.
Coyotes President Shawn Hunter: "We'll be the only team (in
Arizona) this year to see our season ticket base go up. I'd
like to attribute it to good marketing, but it's not. It's
all Wayne [Gretzky]." Bickley: "Those who believe Gretzky's
presence can't improve the on-ice product are living in a
bubble. He will improve the direction, the focus, the
morale." Bickley adds that Gretzky "believes in" Ellman,
and believes that there "will be enough money in the bank to
avoid two more years of stagnant hockey." Gretzky: "There's
a light at the end of the tunnel, and whether people want to
believe it or not, this thing is finally going to come to an
end. Is it the perfect franchise? No. Is it the worst
franchise? No" (ARIZONA REPUBLIC, 8/16). The SPORTSBUSINESS
JOURNAL's Daniel Kaplan cites sources as saying that the
Coyotes "plan to refinance" $60M of debt as part of Ellman's
purchase of the team. Sources add that SG Cowen, which lent
the team $60M last year, "is helping to find" new private
investors, but the bank "does not plan" to refinance the
loan. Instead, the team "will borrow from another, as yet
unchosen, financial institution" (SBJ, 8/14 issue).
ARENA GOAL: In Phoenix, Hernan Rozemberg writes that
Ellman "dismissed speculation" that a proposed $550M sports
and entertainment complex, including a 17,500-seat arena for
the Coyotes, "is slowly dying." Ellman, citing "new,
favorable" poll numbers: "Public support is at an all-time
high. Any opposition has gone away. We're out of issues to
fight about." Ellman "assured" that he will "end up buying"
the Coyotes for $87M, "far ahead" of the December 31
deadline, and the new arena will open at the Los Arcos Mall
site in Scottsdale in fall 2002 with the "full blessing" of
the Scottsdale City Council. On Monday, Ellman expects the
council "to support extending the life" of the Los Arcos
Stadium District, which "ensures" a $200M contribution in
public funds. Rozemberg notes that Ellman yesterday
"huddled" with council members and "brought along" NHL Exec
VP Bill Daly and Gretzky (ARIZONA REPUBLIC, 8/16).
