Finance counsels

The prospective new owners of the Phoenix Coyotes are willing to sign a long-term lease to keep the team in Arizona, but they also are looking at playing some “home” games in western Canada to boost revenue and attendance.

Ice Edge Holdings Inc. also is talking about parking charges at the Glendale-owned Jobing.com Arena to help the hockey team’s bottom line in Glendale.

Glendale officials said they are open to the Coyotes playing a handful of home games in Saskatoon, Saskatchewan, under the right circumstances since, Ice Edge is willing to sign a long-term lease.

Daryl Jones, COO of Ice Edge Holdings Inc., told the Phoenix Business Journal Monday that negotiations with the National Hockey League are moving forward and the ownership group expects to sign a long-term lease with Glendale shortly after working out sales terms. Jones didn’t give a timetable for when his group will finalize its purchase of the Coyotes, currently in Chapter 11 bankruptcy protection.

The NHL bought the team in October through a U.S. Bankruptcy Court sale for $140 million. Plans call for Ice Edge and the NHL to finalize a deal for the Coyotes by June.

Jones also said Ice Edge is not seeking a lease clause that would allow it to move the team if attendance and revenue do not improve.

“We’re in this for the long haul,” he said, adding that a long-term commitment to the Phoenix market will give fans and business sponsors some certainty the NHL franchise is staying here. “It’s all about getting the fans to believe in you.”

The previous lease had a 30-year term. The Coyotes have been playing at the Jobing.com Arena since 2003.

Glendale spokeswoman Julie Frisoni said the Phoenix suburb has had meetings with Ice Edge, but more serious lease negotiations would occur after the sale is complete.

Jones said Ice Edge continues to look at playing some regular season home games in Saskatoon, however.

“It’s definitely something we are entertaining,” he said.

Such games could be played at a new arena in Saskatoon with the Phoenix team playing teams from Vancouver, Edmonton and Calgary. Jones said the team might move games and dates that traditionally don’t draw well in Phoenix. He stressed, however, Ice Edge did not want to take actions that might erode support for the team in Arizona.

The Saskatoon revenue could be shared with Glendale and allow the city to book more non-hockey events at the arena.

Playing games outside of home markets is not common in professional sports, although the National Football League’s Buffalo Bills have played games in Toronto, and college sports teams sometimes play games in different venues to improve revenue.

Jones said playing some home games in Saskatchewan could build support for the Coyotes in western Canada and encourage tourism from Canada.

Another aspect of a new lease between Ice Edge and Glendale would be allowing the team to charge for parking. That could bring in $12 million to $15 million annually for the Coyotes.

Jones said other teams charge for parking and it’s realistic to expect the Phoenix team to be able to do the same. He stressed the team does not want parking charges or ticket prices to discourage fans attending games in a time when housing prices are down and consumer spending is strained.

Frisoni said Glendale is open to considering new revenue for the Coyotes and acknowledged most major sports arenas in North America have parking charges.

Ice Edge is comprised of American and Canadian investors, including John Breslow, who was a Coyotes minority owner when Phoenix businessman Jerry Moyes owned the team. Jones said he expects three or four Arizonans to be part of Ice Edge’s ownership group but he would not disclose additional names.

Moyes put the team into Chapter 11 in May and the NHL and Glendale won a bankruptcy court battle over Research in Motion CEO Jim Balsillie to buy the team. Balsillie bid $243 million and wanted to move the team to Hamilton, Ontario. The NHL did not respond to request for comment late Monday afternoon.

Attorneys and business consultants familiar with Coyotes reorganization case say the team could lose between $40 million and $50 million this year, but will save $6 million not having to pay former coach and minority owner Wayne Gretzky.

The Coyotes are in fifth place in the NHL’s Western Conference this year. The conference’s top eight teams make the playoffs. The Coyotes haven’t been in the playoffs since 2002. Coach Dave Tippett is in the running for NHL Coach of the Year and Ilya Bryzgalov could win the league’s top goalie award.

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