Apr 12, 2010, 10:00 PM EDT
Matthew Coller of the Biz of Hockey has a great breakdown of the two
separate proposals to use Jobing.com arena, the key parts of a deal each
group would use in which to purchase the franchise from the NHL.
are some key pieces to these two proposals that are drastically
we reported yesterday, that could draw the ire of local advocates.
Here’s some of the great, and simple, breakdown
of each sides proposal:
Reinsdorf Group (Glendale Hockey LLC) would:
Buy the team from the NHL for $65 million, less than half of what
the league paid for the Coyotes in bankruptcy court.
Fund the team’s purchase price and up to $100 million in losses
over seven years through a community facility district, which the city
would create around the arena within 120 days. The independent taxing
district would sell bonds and collect other revenues.
Ice Edge Holdings LLC would:
Offer the NHL between $140 million and $150 million, the price paid
by the league for the team last fall, through bank financing.
Raise $14.5 million per year from landowner fees, parking fees and
ticket surcharges, including non-hockey events, paid through a community
facility district, to cover team losses.
The sticking points between the two sides have to do with the
Reinsdorf proposal that puts a lot of the risk on the city, especially
with the stipulation that the team could be back for sale after five
years. The Ice Edge proposal is the more friendly deal for the City, but
there are questions as to whether they have the funds for such deals.
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