Hulsizer Walks away from Coyotes

[STLADOGG]

http://www.tsn.ca/nhl/story/?id=370198

HULSIZER WALKS AWAY FROM BID TO PURCHASE COYOTES

PHOENIX -- Chicago businessman Matthew Hulsizer is out as a potential buyer of the financially troubled Phoenix Coyotes.

Hulsizer has withdrawn for good from talks with the city of Glendale over a new lease.

Hulsizer's decision leaves no publicly identified potential buyer for the franchise, which was purchased by the NHL out of bankruptcy in the fall of 2009.

However, NHL deputy commissioner Bill Daly said there are others in line to try to buy the team.

"There are ongoing negotiations," Daly said in an email to The Associated Press. "While it is unfortunate that Matt has decided to go in a different direction, the city of Glendale has chosen to pursue an alternative structure with one or more potentially interested purchasers. We do not view this as a step backwards in the process. The situation has been moving in this direction for quite some time now."

Glendale recently committed US$25 million for the second year in a row to keep the team playing at Jobing.com Arena for the upcoming season.

The Phoenix Business Journal first reported that Hulsizer had pulled out of the Coyotes deal.

Two representatives of the city of Glendale didn't immediately return calls seeking comment.

The withdrawal is the latest twist in a complicated saga that began when then-owner Jerry Moyes took the franchise into bankruptcy in May 2009 with a scheme to sell to Canadian billionaire Jim Balsillie, who would move the team to Hamilton.

That plan fell apart under legal challenge from the NHL, which wound up being the only bidder for the team. The club has struggled mightily financially since it was moved from Winnipeg in 1996.

Hulsizer eventually emerged as the leading candidate to buy the team and in prolonged talks hammered out a lease agreement that would have the city paying $100 million to the new owner for parking rights and arena operation. The Goldwater Institute inserted itself into the debate and issued a series of caustic news releases and comments from its executive director Darcy Olsen.

The institute went so far as to warn potential bond buyers to stay away from the Glendale offering because of the looming lawsuit. Sen. John McCain has repeatedly criticized the institute for its actions.

When the playoffs began, Hulsizer repeated his interest in buying the team, attending the final game of the team's first-round playoff series against Detroit.

There was speculation that the city might go back to Chicago sports mogul Jerry Reinsdorf, an early candidate to buy the team. Reinsdorf's Chicago White Sox share a spring training facility with the Los Angeles Dodgers in Glendale.

The NHL has steadfastly insisted it wants a buyer who would keep the team in Glendale. There was widespread speculation that the franchise was on its way to Winnipeg. Instead, the Atlanta Thrashers were sold and have shifted to Winnipeg while Glendale committed a second $25 million to cover anticipated losses for another season.

Meanwhile, Coyotes general manager Don Maloney and coach Dave Tippett have put together teams that made the playoffs each of the past two seasons.

[WaukeeBlues]

They're not going to make it...

[strocklen083]

This situation continues to be a joke and a black eye for the league. The team in Atlanta had a much better chance of sustained success and yet the league just packs up them and ships them to the 'Peg while desperately hanging on to the money pit of a situation in Glendale. Shoulda moved them back to Winnipeg last year and found a suitable buyer in Atlanta.

Oh well, what's done is done. Glad to see Gary's 15 year plan is working out so well: a team is back in Winnipeg and we're reverting to 4 divisions. Progress!

[dmiles2186]

My first thought: He's a Chicago guy and he's got money to buy a team. My second thought: Why not the Blues? It's not like he'll move them to Chicago.

[ohio BLUES]

Yeah, but when's the last time the Blues attracted a top-flight free agent?

[DaDitka]

: Why not the Blues? I

Because he was trying to get a sweetheart deal on the Coyotes, and Dave is trying to 'F' someone on the Blues.

I'm getting the feeling that while his investors want out, he doesn't and that why he's making it hard to sell.

You have a team that has set the market with low ticket prices, and that's not something you can change quickly.

You have very little corporate support, and that's only going to get worse.

You've 'cashed out' you concession profits.

You have the lowest (or one of the lowest) parking revenue streams in the league.

You are the only tenant in your facility, and loose countless other dates to Chafitz and Family Arena's.

You are not including the Kiel/Peabody Opera house in the sale but it was part of the purchase price.

AND YOU WANT TOP DOLLAR?

Unless Dave comes down about 40 - 50 mill (at least, quite possibly more)...this organization is going to be for sale for a while.