Ice Edge Holdings response to my email

PHOENIX - Ice Edge Holdings has exclusive rights, with some conditions, to negotiate a lease agreement for the Phoenix Coyotes with the city of Glendale under a memorandum of understanding to be presented to the city council next week.

The memorandum agreed to by Ice Edge and city officials is a significant step toward purchase of the Coyotes from the NHL. It was presented to the council in a close-door session on Friday, then the item was posted on the agenda for the council's regularly scheduled meeting next Tuesday.

Ice Edge, a group of mostly Canadian investors, would have exclusive negotiating rights for 60 days unless another potential buyer gives US$25 million to the city to cover its obligations to the NHL. Ice Edge also has to present a term sheet to the city from a lender proving it has the financial backing to buy the team.

The only other potential buyer has been a group headed by Chicago sports mogul Jerry Reinsdorf and there was no indication it was willing to make that commitment.

The NHL bought the team out of bankruptcy last September with the intention of selling it to someone who would keep it in Glendale, where the team has lost tens of millions of dollars in recent seasons.

Purchase of the team is contingent on a new lease agreement with Glendale for the Coyotes to play at Jobing.com Arena.

"This has been a long process for everyone involved with many peaks and valleys," said Ice Edge chief executive officer Anthony LeBlanc. "We are happy to be in a position to hopefully move forward with our plans for the Coyotes. However, there still is a lot of work to be done starting with the approval of our MOU by Glendale city council."

Earlier, the council approved a memorandum for the Reinsdorf group but rejected the Ice Edge proposal.

Later, city officials approached Ice Edge asking if it would return to the bargaining table. At one point, Ice Edge walked away from those talks, but later returned.

The NHL will decide who will buy the team but if Ice Edge can work out a new lease within 60 days, it would be the only potential purchaser with the necessary lease agreement. The league has said it would look to move the troubled franchise if no buyer could be found to keep the team in Arizona.

The Coyotes never have turned a profit since the franchise moved from Winnipeg in 1996. The team had played before sparse crowds until this season, when the Coyotes set franchise records for wins. The team played before sellout crowds at season's end before falling to Detroit in seven games in the first round of the playoffs.

The agreement notes that it is important to complete the sale as soon as possible.

"It is the intention of both parties," the memorandum reads, "to proceed with negotiations of the necessary agreements without delay with the desire to have agreements completed for approval within 60 days."

Read MOU here.

The NHL bought the team out of bankruptcy last September with the intention of selling it to someone who would keep it in Glendale, where the team has lost tens of millions of dollars in recent seasons.

grumpy old man wrote:
This sounds like something the Winnipeg Enterprises tried when trying to salvage the Jets. We all know how that worked out.
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grumpy old man wrote:The Ice Edge folks are likely our best hope of that team returning to Winnipeg.

I'm amazed any lender would throw $150 MILLION or so at this venture. Assuming they do have a lender, how do they plan to make the team profitable? In $15 years that team never made a dime. Last year, a year when they had their best record ever, they still lost 20 or 30 million dollars.

These folks will be bankrupt faster than you can say moronic lending practices...

By: Gary Lawless, Winnipeg Free Press
Ice Edge's deal to keep the Phoenix Coyotes in Arizona could be in peril due to tough financial times, says the group's spokesman.

Daryl Jones, CEO of Ice Edge Holdings, the lone group in discussions with the City of Glendale to buy and keep the Phoenix Coyotes at Jobing.com Arena, is not sure his team will be able to put together a financing package to purchase the team.

"It's hard to gauge the probability of this deal closing," said Jones.

"Realistically, there has been a great deal of financial turmoil in the world over the last 45 days, sovereign-debt issues and stock market corrections, which are going to make it harder for us, or any group, to close this transaction. That being said, we do remain optimistic."

rosencrentz wrote:GOM- one billion dollars for security for G20 blowhards, could've bought how many franchises?
What a waste!

rosencrentz wrote:GOM- one billion dollars for security for G20 blowhards, could've bought how many franchises?
What a waste!