Barroway Reaches Deal To Become Coyotes Majority Owner, Buying 51% Stake
Coyotes ownership group IceArizona on Friday announced that it will sell a 51% share of the franchise to Philadelphia-based hedge fund manager Andrew Barroway, who "will be the second owner in the last 14 months if the sale is completed," according to Peter Corbett of the ARIZONA REPUBLIC. The $152.M deal remains "subject to approval" by the NHL BOG. Coyotes President & CEO Anthony LeBlanc said that the "value of the team" was $305M. Corbett noted LeBlanc's IceArizona ownership group paid $170M for the Coyotes "a little more than a year ago." LeBlanc "strongly dismissed speculation that the team will leave Glendale." He said, "There's been no discussions of movement of the franchise with (Barroway). It's not going anywhere." LeBlanc added reports that the team lost as much as $24M in IceArizona's first year of ownership "are not accurate." Barroway "will join the existing nine partners and serve as Coyotes chairman and governor," but LeBlanc "declined to say how the new partnership will operate." LeBlanc said that there are "tax advantages for the new ownership group because Barroway, an American, is taking over the majority stake with a group of Canadian investors" (ARIZONA REPUBLIC, 10/11). The AP's John Marshall noted Barroway has "been a successful hedge fund manager, serving as the managing partner of Merion Investment Management LP, an event-driven hedge fund that manages" more than $1B. Selling a majority stake to Barroway "will give the Coyotes a massive financial infusion while giving the members of Canadian-based IceArizona a substantial tax break" (AP, 10/10).
DESERT FURY: The AP's Jose Romero noted with Barroway taking over the Coyotes, IceArizona's George Gosbee will go "from being chairman, governor and co-owner to just co-owner of the franchise." Gosbee said of Barroway, "He's coming in now with a group of partners that understand hockey. There's no noticeable changes (in the franchise) other than we have a lot more financial flexibility." He added that the team "will probably lose money again this season, but hopes to turn a profit starting next year" (AP, 10/11). CBSSPORTS.com's Chris Peters wrote LeBlanc "has appeared to be making an honest effort to get things going in the desert." There have "been several maneuvers executed to bring in more money for the team." The Coyotes are "probably going to require a lot of Barroway's patience when it comes to both the business side and the on-ice product" (CBSSPORTS.com, 10/10).