The saga of the Phoenix Coyotes took another turn yesterday when it became public that Jerry Reinsdorf was backing out of a potential deal to purchase the Coyotes, and keep them in Phoenix. Reinsdorf was given exclusive rights by the city of Glendale to negotiate a new lease for the Coyotes. The deal appeared to be done when Reinsdorf was able to gain considerable concessions from Glendale; however, Reinsdorf has always appeared to hesitant to become involved in the National Hockey League, and it now appears he has finally decided owning an NHL franchise, that has lost money every season since moving to Phoenix, is not smart business.
These recent events have brought the city of Winnipeg back into the mix as a possible destination if the Coyotes are relocated by the National Hockey League. Many believed that both Kansas City and Las Vegas would be the primary destinations for the Coyotes, but it is now apparent that Winnipeg is number one on the list if relocation is the only option. However, a move to Winnipeg is still far from a done deal.
The City of Glendale has not given up the fight to keep the Coyotes playing at Jobing.com Arena. When city council decided to give Reinsdorf exclusive negotiating rights, it was at the expense of the Ice Edge Holdings group who were also trying to buy the Coyotes withthe intention of keeping the team in Phoenix. With Reinsdorf now unwilling to purchase the franchise, Glendale has asked Ice Edge back to the table hoping the two sides can come together on a deal.
A deal between the two sides does have a number of obstacles to overcome. The first and foremost obstacle is the fact that Ice Edge has yet to prove they have the money to purchase the Coyotes. It was reported that Ice Edge originally asked the City of Glendale to guarantee their bank loan that would allow the purchase of the team to go through, and that stumbling block was the primary reason council negotiated solely with Reinsdorf. It is now believed that Ice Edge has dropped that demand, which has made the city happy, but now the group wants the league to guarantee the loan. Given the league’s recent problems in Nashville and Tampa Bay regarding money, it is highly unlikely that they will be very interested in that type of proposal. Ice Edge is apparently banking on their belief that the National Hockey League is desperate to keep the team in Phoenix, but it is becoming more and more apparent that the league is not nearly as keen to keep the team in desert.
Moving the Coyotes back to Winnipeg has become a very real option for the National Hockey League. Canadian billionaire David Thompson has indicated he is willing to buy the Coyotes, and would then move the club to Winnipeg to play in the MTS Centre. Thompson definitely has the money to purchase the Coyotes, so the league can free themselves over those concerns, and Winnipeg makes the most geographical sense for the league. Canada is a hockey hotbed, so the fan support is already in place, and given the current strength of the Canadian dollar, a team in Winnipeg should be capable of making high profits. While the MTS Centre is still considered small by NHL standards, upgrades can be made to the arena over time that would increase the capacity to standard NHL levels. Finally, the Winnipeg Jets previously played in the Western Conference, so bringing the club back to Manitoba would allow the league to keep the current division and conference alignments intact.
The Coyotes had one of their best seasons on the ice since making the move to Phoenix, but they still struggled mightily off of it. Given the fact that the league there does not to be any legitimate ownership groups stepping forward, that leaves the league facing the prospect of running the franchise for another season. The league is clearly feeling pressure from the other owners who clearly do not want to spend their own money to keep the Coyotes operating, and it is being reported that the league has actually made two schedules for next season. One schedule includes the Phoenix Coyotes, while the other contains Winnipeg Jets. The National Hockey League is allowed out of the lease with the city of Glendale on June 30th, and can then move the team if no buyer has been found. While this is all still speculation, one thing is becoming more and more certain, hockey fans in Winnipeg are closer then ever to seeing the return of their beloved Jets.