Coyotes Co-Owners Talk Of Changing Holding Company Structure

Shift Change: Coyotes Co-Owners Eyeing Shake-Up Of Partnership

Coyotes co-Owners Jerry Moyes and Steve Ellman “are negotiating to shake up their partnership in Coyotes Holdings,” parent company of the team and the Westgate City Center, with either “one partner buying out the other or both splitting the assets,” according to Harris & Flannery of the ARIZONA REPUBLIC. A “likely scenario” would have Westgate, a retail, office and residential project planned around Glendale Arena, going to Ellman, while Moyes would receive the Coyotes. However, Ellman would need to “buy some of Moyes’ interest in the partnership” for that to occur, as Moyes owns about 75% of the company compared to Ellman’s 25%. Moyes declined to comment, but Ellman “confirmed that discussions are ongoing to ‘reshuffle the deck in some way.’” Ellman said that it is “too premature to predict precisely what kinds of changes will take place.” But he added, “I would like to own more of the real estate; he (Moyes) would probably like to own less of the real estate.” Harris & Flannery note a sticking point in the negotiations is control of the Coyotes because Ellman is the team’s governor and the NHL would have to approve a change in that position. Moyes has “continually covered the Coyotes’ financial shortfalls.” He initially invested $20M to buy the team in February ’01, and assumed a $60M loan Ellman used to buy the team the next year. He also invested $35M to complete Glendale Arena in September ’03. Loan documents and prior reports show Moyes “has invested roughly $241[M] in Coyotes Holdings” (ARIZONA REPUBLIC, 1/5). A report in August, which was denied by the club, had Moyes selling his share of the team to Ellman (THE DAILY).