Some Other Guy Tried to Buy the Phoenix Coyotes and Already Failed

Categories: Coyotes
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At least this Darin Pastor guy didn't get anybody's hopes up.

Pastor, the latest person to announce that he's buying the orphaned Phoenix Coyotes, is the latest person to fail at buying the Phoenix Coyotes, just like every other potential buyer over the last 3 1/2 years.

See also:
-Phoenix Coyotes Remain Orphaned After Greg Jamison Misses Deadline to Buy Team

There is another potential buyer right now, Renaissance Sports and Entertainment -- which includes one of the guys from the previous potential buyers known as "Ice Edge" -- but Pastor, who just a couple months ago announced his intention to buy the Coyotes, appears to be out of it.

Several media outlets are quoting NHL deputy commissioner Bill Daly on the matter, including ESPN, which reported that Daly said Pastor's bid didn't "warrant serious consideration."

To Pastor's credit, his bid was a lot less dramatic than Jamison's.

In May of last year, NHL Commissioner Gary Bettman came to Glendale, and held a press conference right before a playoff game to announce they'd found a buyer for the league-owned team.

A few months later, Jamison missed the deadline to sign the arena-management deal with the City of Glendale, apparently because he was short on the money he swore he'd have for this whole deal.

Jamison was just the last in a long list of disappointments, people who Valley hockey fans thought would be the messiahs with the moolah to keep their beloved team in Glendale.

The NHL has insisted that it wants to find a buyer who will keep the team in Arizona, so we'll still have to wait and see how much patience they have for that.

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Follow Matthew Hendley on Twitter at @MatthewHendley.



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3 comments
royalphoenix
royalphoenix

If the COG would smoke the peace pipe with the TO and let them build their casino, it will put a lot more people with $ in their pockets at Westgate. The TO might buy the worthless Coyote tickets and give them away in their Casino.

camprrm
camprrm like.author.displayName 1 Like

Here is why they all are failing to sell the team:

The Coyotes are worth, at best, $100 million.  In fact, they probably are worth less, because they have less attendance than recent teams that fetched that price and the last NHL team sale at that price included the stadium.

On the other hand, the NHL has committed to its owners that it will not take a loss on the sale.  This means they are demanding something like $200 million and won't go lower.

The only way to bridge those is if the town of Glendale puts $100 million into a doggie bag to hand to the buyer to in turn hand to the NHL to bridge this bid-ask gap.  

In their first attempt to do so, Goldwater (rightly I think) called Constitutional BS on them and stopped the direct subsidy of the transaction.  So Glendale has fallen back on trying to bury the $100 million payoff some way no one will notice it -- the most recent attempt has been to try to grant the buyer a stadium operations contract for a way above market price.  Overpay for the stadium operations contract by $10 million for 15 years, and that is about $100 million present value.

But now audits have discovered this dodge as well (I had to laugh at the Glendale leaders who were shocked ... shocked! that the stadium contract as proposed to the buyer was so far above his cost.  Duh, that was the whole point of the deal).

If the NHL does not move on its price, and Glendale can't throw more of their citizens money to some billionaire, then this is not going to happen.  There are folks who will pay $200 million or more, but they want to move the team.  Jim Balsillie was going to pay well above this, and make a contribution to paying down the stadium debt, but he was going to move the team.  Had they accepted this deal years ago, and let the team go, the city would not be subsidizing the team $25 million a year and would have much lower debt.  They might be over $100 million better off already, and $200 million better off if they find a way to subsidize the sale, which is $800 for every man, woman, and child living in Glendale.  As people in the stock market say, often times your first loss is your best loss.

getmeouttahere
getmeouttahere

@camprrm This. They should have taken the Balsillie deal, even if Bettman and the owners hated his guts with a shovel. 

They Coyotes are a money pit, always have been, always will be. Phoenix just does not have enough hardcore hockey people to support an NHL team. We are a minor league market, at best, and future demographic trends are not in hockey's favor. The reality is that Arizona is going to be majority Hispanic within 50 years, if not sooner, and Hispanics are not simply not hockey fans. It is a sport of cold northern European countries, not warm Latin American ones. Glendale would have been better off trying to attract an MLS franchise.

The NHL needs to give accept reality. They need to sell the team to an owner who will move them to a city where they might actually be viable, like Seattle or Quebec City, and accept that they may have to take a loss on the deal. 

Better yet, they should fire Gary Bettman as commissioner, accept that the NHL's "southern strategy" has been a colossal FAIL (not a single team south of Denver is making money) and downsize the league by shutting down at least 10 franchises, including the Coyotes. 

As for the City of Glendale, the only way out of this mess is municipal bankruptcy. Like another poster said, they need to stop fighting the Tohono Odham tribe and let them build their casino; perhaps then the tribe could also be persuaded to take that dog of an arena off the city's hands in bankruptcy court. 

In falling for Sleazy Stevie Ellman's  deal, all the City of Glendale did was prove the stereotype that the hicks and hayseeds on the Westside of the Valley don't have what it takes to run with the big dogs.

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