Embattled Phoenix Coyotes owner Jerry Moyes improperly released confidential information about Jerry Reinsdorf's bid to buy the team, and the judge overseeing the bankruptcy action is threatening sanctions.
Embattled Phoenix Coyotes owner Jerry Moyes improperly released confidential information about Jerry Reinsdorf's bid to buy the team, and the judge overseeing the bankruptcy action is threatening sanctions.
An appendix to court documents filed Friday by Moyes and his attorneys detailed what Jerry Reinsdorf wants to see from Glendale in exchange for keeping the Coyotes at Jobing.com Arena. The proposal is rather spectacular if what the Arizona Republic is reporting is accurate:
It showed that Reinsdorf has asked for a special taxing district to be created near the arena that would pay the new owners as much as $23 million next year. And if the team was still losing money after five years, Glendale would have to pay Reinsdorf $15 million for each year of losses or allow the team to be sold and moved without penalty, according to the newspaper.
In other words, Glendale would basically pay Reinsdorf to take over the team, setting up a situation where it's impossible to lose any money even after paying either $121 million or $148 million for the team (the actual amount differs based on who is doing the estimating). No wonder the NHL wants to see the Reinsdorf purchase go through: it would allow other owners to point to Glendale as the model for financial arrangements, giving them leverage as they negotiate leases in upcoming seasons.
So while Judge Redfield T. Baum considers sanctions against Moyes and his legal team, Glendale taxpayers should be happy about the release of this data.
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