The Glendale City Council approved a memorandum of understanding (MOU) with Ice Edge Holdings over the broad terms of a new lease at jobing.com Arena, sunbect to the group’s purchase of the Phoenix Coyotes from the NHL.
The MOU gives Ice Edge Holdings 60 days to finalize a lease and obtain the team, which means the group must firm up financing as well.
The lease calls for the team to receive additional revenue from parking at the arena as well as from a special taxation district set up around the arena. The deal is designed to stem the losses associated with the team; former Jerry Moyes reportedly lost $20 million a season running the franchise. Glendale has already pledged $25 million to cover Coyotes losses this coming season should a sale fall through.
Ice Edge Holdings was battling with Chicago Bulls and Chicago White Sox over Jerry Reinsdorf for the team. Ice Edge says it will shift some games to Canadian cities in order to raise more revenue.
RELATED STORIES: Bettman: Oh, Canada?; Reinsdorf: I’m done pursuing Coyotes; Ice Edge Holdings emerging as leading Coyotes suitor; Glendale to cover Coyotes losses — for now; Reinsdorf snares Jobing.com Arena lease, Coyotes presumably to follow