Make no mistake. The team has a new owner…Andrew Barroway. Below is the press release on the Arizona Coyotes website with the announcement:
NHL Approves Agreement for Andrew Barroway to Become Majority Owner of the Coyotes
Wednesday, 12.31.2014 / 10:16 PM
Arizona Coyotes
FOR IMMEDIATE RELEASE: Wednesday, December 31, 2014
GLENDALE, ARIZONA — “The National Hockey League (NHL) and the Arizona Coyotes announced today that an agreement for IceArizona to sell 51 percent of the Arizona Coyotes franchise to Andrew Barroway has been finalized by the NHL’s Board of Governors. Barroway will serve as the Coyotes Chairman and Governor immediately.
‘This is truly a dream come true for me and my family,’ said Barroway. ‘I am extraordinarily grateful for the opportunity of a lifetime and look forward to working and solidifying a strong partnership with the Club’s current ownership group.
‘As a group we are committed to serving our fans with a new level of excellence and our collective goal is to put a competitive team on the ice every season and, one day, win the Stanley Cup.’
‘Today is an exciting day for the Arizona Coyotes and our great fans.’ said Coyotes Co-Owner, President and CEO Anthony LeBlanc. ‘The addition of Andrew Barroway to our ownership group further solidifies the Coyotes long-term future in the Valley. Our entire ownership group is excited about this opportunity to work with Andrew in taking this franchise to the next level. It’s a great day for hockey in Arizona!’
Andrew Barroway is the Managing Partner of Merion Investment Management LP, an event driven hedge fund that currently manages more than $1 billion. Merion was founded in January 2009. Barroway graduated from the University of Pennsylvania Law School in 1991.”
Andrew Barroway is the new owner of the team. A simple analogy is this. You can no longer afford to make the mortgage payment on your house. You get your uncle to buy 51% of the value of your home. Then you decide you want to repaint and recarpet your house but your uncle says, “No.” Who prevails? Your uncle, of course. He is the majority owner.
It’s the same with the team. Rumors abound that the Gosbee/LeBlanc group have been missing their cash calls. Missing a cash call means that the ownership group (prior to Barroway) refused to use personal funds to cover losses. This probably made the NHL (Commissioner Bettman and the other team owners) very, very nervous. No wonder Bettman worked so hard to find another investor for the team.
One has only to look at this photo to see how thrilled George Gosbee and Anthony LeBlanc are to relinquish control of the team. While it is an old photo it reflects what each must have felt. Each looks as if their dog died.
Photo credit: Matt Kartozian, USA Today Sports via Five for Howling by Brendan Porter
The minority owners have no choice but to put a ‘good face’ on the situation. LeBlanc’s mantra was Barroway’s purchase “further solidifies the Coyotes long-term future in the Valley.” Barroway offered “our collective goal is to put a competitive team on the ice every season and, one day, win the Stanley Cup.” Barroway’s function over the next few years will be to shore up the team financially and to cover those pesky cash calls.
On Friday, January 2, 2015 there was a press conference at the Gila River Arena to introduce Barroway to the Arizona fan base. (By the way with the name change to Gila River Arena, why does the very top of the arena, seen in aerial views, still say Jobing.com?) The presser was interesting on many levels. Anthony LeBlanc made several rather telling comments. In terms of a sale of the majority interest to Barroway, “we (the ownership group) weren’t looking for this.” They might not have been looking for it but it appears that Bettman and company most certainly were. He also confirmed that the sale consummated on the last day of 2014 “offers tax advantages for 2014.” The best face LeBlanc could offer was that the sale provides “financial flexibility.” Don Mahoney, the team’s General Manager, confirmed the importance of the sale to Barroway by saying, “we (the team) are solvent” and the sale provides “(financial) stability for long term success.”
It is no secret that Barroway has been trying to acquire a hockey team for years. Witness his attempts with the Philadelphia 76ers, the New Jersey Devils and the New York Islanders. In his case, the 4th time is a charm or as Barroway put it, “keep trying and don’t quit.” With regard to his relationship with the City of Glendale Barroway praised the “strong partnership” with the city. It seems the strong partnership is the $15 million a year the city pays the team. Le Blanc and Barroway reiterated that they are “committed to be here.”When asked about the “out clause” in the current Glendale/IceArizona deal, Barroway casually confirmed “the out clause remains in place.” As long as that option remains so will the speculation about a move after 5 years of losses. If Barroway is truly committed to keeping the team in the Valley working with Glendale to remove that stipulation would scotch the notion once and for all but don’t hold your breath. Barroway emphasized that he will be “very involved in all major decisions” and that “the buck stops with me.” LeBlanc painfully agreed by saying Barroway “wears the crown” as the majority owner of the team.
Just as every Coyotes fan, I desperately want Barroway and the team to succeed for that insures the team in Glendale for a very long time. An integral part of that scenario is constantly building a strong and ever growing fan base. That is difficult to do in today’s climate. Everyone, especially a fan base, loves a winner…a loser, not so much. The team’s performance is in a state of flux as older, experienced players are replaced with young, unproven new faces as part of a rebuilding cycle. The only star player the team will probably retain over the long haul is Shane Doan and he can’t do it alone. The financial bleeding will diminish when the team’s performance proves to be a consistent game winner.
What does the future hold for the Arizona Coyotes? Only Andrew Barroway knows and he’s not telling. Remember there is an option in the Glendale/IceArizona deal that the team can move after demonstrating 5 years of loss. Barroway, first and foremost, is a smart businessman. While he expects losses he also expects those losses to diminish over time as he works to build a more competitive and winning team. Only Andrew Barroway will decide if the team’s future includes a move to a more profitable locale with the financial resources to build his dream team that wins the Stanley Cup. We all hope that the dream of a Stanley Cup includes Glendale, Arizona. We all hope that is Barroway’s dream as well.
© Joyce Clark, 2014
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Let’s all remember, the BOG of the NHL has the final say in whether or not a team can relocate. Does anyone really think the BOG is going to approve a $70-$100MM relocation fee to a market that can fetch up to $500MM in “expansion” fees (that is not considered hockey related revenue that must be shared with players)? I’d be willing to bet that if they report double digit losses after year 3, they will start negotiations with the Salt River community.
Have always been a supporter of the Coyotes staying put..if only for selfish reasons that I can should I choose to go to a game, pay for the ride down for less than attending a game in Toronto. But John Shannon, a Coyotes cheerleader, reported sometime ago that the losses for last year were 21 million. And now Leblanc and Gosbee, having been the only ones to offer to buy the team (or they would already have been gone) obviously not being able to carry the team for even two years, and thinking that losses will be the same or more, they will have acheieved losses of at least 42M. It is obvious attendance is NOT going to approve substantially overall for a while. Barroway invests to make money..love of hockey or not he is in it for profit..his history shows this..he will cut the rope if a venture is toast no matter how much he personally loves it. He is smart, he overpays for the Coyotes so that some cash can remain inside for player salaries; he knew he would have to invest so why not inflate the price to make it look like a higher priced team (also good for the NHL optics) when he knows he would have to kick that cash in anyway? Many tout the price as showing that Leblanc and Gosbee got a great return; think again. I’m surprised they do look so miserable in the picture when I would have thought it would be relief showing through. I am now convinced that If the Coyotes are to stay, a business model and new arena elsewhere in the area would have to be good enough for Barroway to buy into. The question is, would it need to be finished by year 5? Could they invoke the outclause and still make a deal with the COG to stay a little longer until a new place would be ready? Or does the NHL finally cry uncle, accept a move to Seattle and accept Barroway giving what would be close to an expansion fee for the privilege anyway? Or does Barroway take a nice sum from Quebecor, and they pay the NHL close to what would have been an expansion fee as well so the NHL gets almost all of what they would get with a new team and finally solve their desert woes. Just speculating I know, but it would seem I’m not the only one lately. To drink the koolaid that Barroway is yet another saviour as of now seems VERY foolhardy.
Geoff….
I almost fell out of my chair with your first sentence. You’ve advocated this team should move on many occasions….. and you and I have butted heads over it more than once.
Stop using unsubstantiated numbers on losses. There’s been numbers thrown out there all over the place. Anywhere from $8-35 million. it went on all through the bankruptcy years and it’s going to continue….. yet not one of those figures could be confirmed by anyone. Even people I chat with HFBoards, who are professional businessmen and women far above my pay scale, don’t believe them unless they see an actual document to back it up.
You are SADLY mistaken….I have never advocated the team move….i defy you to show any proof of that…perhaps your perception of what I wrote was taken as that because you are passionate and didn’t read it clearly.. .i have debated the facts for years objectively i believe. ..I may have said I think they will move or were in trouble. .but I never wished that. ….you can ask Tom K about our debates and disagreements but he has always known I am in favour of them staying. ..and we always stayed respectful for the most part (we both got out of hand occasionally)but I refuse to accept untruths, spins or misleading tidbits to be written with impunity on either side. Many of you both up here and down there are guilty of this..including the clique that exists among lobbyists and so called independent journalists. Who can gain any respect by campaigning in an election on behalf of a candidate you believe in just to call them a troll later when they take a different stance then you would like them to?
I agree 100% Mr. Kerr! I think it was a disraceful display of classlessness by Fallar to describe Ms. Clark as a “local troll”, especially when he was such a big supporter of her campaign, yet when her opinion does not fit his “agenda”, she all of the sudden becomes a “troll”. Real class, George.
It’s too bad you didn’t catch on sooner to how quickly “Glendale First” can turn on you when you don’t suit their agenda, Joyce. Perhaps there could have been an entirely different outcome to this whole situation had you have known sooner….
I wouldn’t judge Mr. Fallar so quickly.
His initial reaction to Joyce’s blog was not much different than mine, even though I don’t agree with him applying the term “troll”.
That’s not “turning against” anyone.
In fact, George put out some very informative blogs on how people managed to waste a couple hundred thousand dollars screwing up not one…. but two anti-casino initiative campaigns in Glendale and a recall campaign against Gary Sherwood. Two subjects Joyce has been critical about.
Have to disagree Legend..the term “troll” in the urban dictionary is defined as ”
One who purposely and deliberately (that purpose usually being self-amusement) starts an argument in a manner which attacks others on a forum without in any way listening to the arguments proposed by his or her peers.” Fallar used it as a term of derision, nothing more. And be honest, we all know it. It is not the first time he has “turned against her” merely for her views. Any “truth” that is not pro-Coyotes is seemingly immediately dismissed or minimized to suit the cause. There are some that don’t believe all the gospel according to George. Some of it is just downright rubbish. And Just because he posted some blogs that happen to agree with Ms. Clark at times does not take away from his obvious desire to attempt to belittle her on this occasion. He could have just disagreed. He went too far and owes her an apology.
Geoff….
Using your definition of a troll. Did Joyce’s blog above…. in its original form (before she corrected it)…. not constitute a typical posting a “troll” would make?? FYI…. the term “troll” is also used to define postings on the internet rather than people.
Nevermind what Joyce’s intentions were. It’s the effect it caused that defines it…. and George and I weren’t the only ones who saw it that way.
I’m not defending George here…. he’s quite capable of doing that himself. Just pointing out facts.
BTW Carl….
You do realize Glendale First! is made up of people other than Mr. Fallar and has done more for the city than just political work, right?
Well, Legend, given that the picture lends itself in my opinion to an error rather than a deliberate attempt to mislead, I would say no. I also don’t see the article as “attacking anyone..the picture just was her interpretation of what the folks’ mood may have been given the circumstances, even if the picture was either mistakenly referred to or just a possibly less than stellar representation. And I disagree with the assertion that the result of how others interpret it is what defines it. That implies that you were right by saying your interpretations (and perhaps others) of my previous posts proves that I was advocating the Coyotes leave. That can’t define my views because they never have been my views. The writer bears responsibility to make themselves clear, and I can tell you that I have never taken that position. It would be a catastrophe for the COG if they left, much worse than if they stayed. Many people are mistakenly taken out of context, through no fault of the writer.. because they read too fast or had slanted views to begin with.
Besides, if indeed you believe that it the article in original form does initimate that in this case Joyce was a de facto troll, why did you respond with “I don’t agree with him applying the term “troll”.? I appreciate the good natured banter though, Legend, and while I too have much sarcasm on tap, this is sent with none.
Legend and Geoff,
There was no deliberate attempt to mislead. When the photo was sent to me it was identified by the sender as being what I originally represented it to be….a recent presser announcing the sale to Barroway. I used it because I felt it expressed the owners’ reactions to losing control of the team.
There is a subset of extremist Coyotes fans who cannot abide any speculation or criticism. When it occurs they attack the person rather than the issue, I’m a big girl and can take it. It is interesting to note that even George continues to read my blog and in a fit of pique called me a ‘troll’.
I am still passionate about Glendale and its future well being. I wonder if it has occurred to anyone that in 5 years Glendale will have paid $75 million to IceArizona, nearly double the amount of cash ($45 M) LeBlanc and crew put up to buy the team.
I agree that if the team moves it will be devastating but I disagree with the enormous annual fee (read blackmail) of $15 M that Glendale pays to keep the team here. If Barroway moves the team that investment might as well have been flushed down a toilet.
Fallar’s calling Ms. Clark a “troll” was made in a malicious “name calling” way… One that he often likes to criticize others for doing. Yet his “standards and morals” do not apply to his actions.. as classless as they are. There is no way to spice up the word “troll”, Legend… And it was clear as day what his intentions were using that word.
I am glad to see you are still passionate about Glendale’s well being Joyce. I hope one day you can once again do more about it… this time hopefully without “ulterior motives” trying to smokescreen your opinions and concerns.
Their dogs did die. NHL hockey never has and never will be profitable in this market. The Coyotes have NEVER been profitable. Unfortunately…it’s just business. Businesses that don’t make money ultimately close, move to another location, or are sold. Barroway is used to making a lot of money as a successful hedge fund manager and he will not stand for losing money as an owner. He will find another market where he thinks he can make money and move the team. And that will suck for Glendale.
Funny Joyce the photo you used is from the press conference in 2013, NOT the Andrew Barroway one, lazy research eh? Why include this wrong photo and mock it?
As I stated in a previous reply, I think the photo represents how the owners must feel on losing control of the team. I did watch the Barroway presser in its entirety.
Well…..
I see it didn’t take long for the doom and gloom people to jump on this.
Joyce… I get the skepticism and do not blame anyone for being so after spending the last 5-6 years being put through the ringer.
However…. I have a huge bone or two to pick here.
First…. your photo you chose for your article was more than likely taken in 2013…. when IceArizona originally purchased the franchise. Note the back curtain in the photo says “jobing.com Arena.” The arena name was changed prior to the sale to Andrew Barroway and as such the Gila River Arena logo was.
Second… George Gosbee was not present at the press conference. Neither was Gary Bettman. It was attended by Andrew Barroway, Anthony LeBlanc, Don Maloney, and Dave Tippet. Anthony LeBlanc introduced Barroway at the presser as new owner and didn’t look any where near like his dog had just died. The video is readily available at the Coyotes website if you don’t believe me.
The next day LeBlanc went on Fox Sports 910AM the next day and was very forthcoming as to how he and Barroway met. AND… that the addition of having Barroway in a majority position made it better for him and for the team to make decisions on the business side.
The interview can be found here…. http://www.foxsports910.com/media/podcast-the-freaks-interviews-TheFreaksInterviews/16-anthony-leblanc-25716406/
So it totally puzzles me how you could come to the conclusion that Gosbee and LeBlanc were downtrodden over giving up control of IceArizona to Andrew Barroway?
The realize the old adage says…. “A picture is worth a thousand words.” But there’s another one that also says…. “Looks can be deceiving”. And people with agendas often apply the latter to the first to suit their goal.
So which is it???
Finally…. I also saw the jobing.com logo was still on the roof during the Fiesta Bowl. I even sent a tweet off to Gosbee and LeBlanc about it…. and I would doubt others did too. But really…. how many times are you going to have flyovers of the arena televised? Yes…. it needs to be covered or repainted. But let’s not ignore that the signage on the sides of the building were quickly replaced prior to the season with bigger ones. They don’t come cheap. Neither does painting a roof the size of Gila River Arena. For all anyone knows it was an oversight and they’ll eventually get it done. But as I recall…. when the NHL operated the Coyotes they noted that the roof was in need of around $500,000 in repairs. If so… then is it not prudent….. and more economical sense….. to fix the roof before repainting it?
Legend,
As always thank you for taking the time to comment. You are correct. The photo is an old one. I have corrected the context in which I used it. I used it because it appropriately reflected how they must feel in giving up control of the team.
What I find more interesting is that the only “issues” you identified was the use of the photo and the fact that the roof still has Jobing.com emblazoned upon it.
Those are your opinions, Joyce. We’ve disagreed before on a few things, but I have always respected your side of it.
However…. I will take to task when I feel I see a misrepresentation of facts takes place…. and that’s exactly what happened here. Yes… you made the adjustment in describing the photo was an old one. But your description that it represents “how thrilled George Gosbee and Anthony LeBlanc” is still subjective and misleading (albeit a lesser degree). Especially in light of the radio interview I provided above where we get to hear directly from LeBlanc himself his feelings about the deal and what bringing Barroway on board does for the IceArizona group. If LeBlanc was showing signs of despair and despondency in that interview… I’d challenge anyone to show me otherwise.
So…. (with all respect to the Gila River Arena roof 😉 ) why paint it that way?? Haven’t we had enough of that these past 6 years??
Now…. let’s expand on another item…. since you feel I should be saying more…. 😉
The point about the tax savings and having the deal close before the end of the year. I’m going to put out a few questions for people to ponder:
–Does this not make sense from a financial standpoint for IceArizona to reduce their tax liability by placing control with an American because IA will be pay a much lower rate in the US than they would in Canada??
–Does this not make sense to complete the transaction prior to January 1 because to allow it to be subject for same Canadian taxation for another year???
–Does this not give IceArizona more room to work with (nee “flexibility”) and fulfill their obligation to the City of Glendale (returning the additional $9 million the City added to the lease agreement)??
–Does not bringing in another investor also provide for the same??
–Does not all of the above provide aid in keeping the franchise in Arizona??
Legend,
I am not now nor ever have been opposed to their measures to reduce their tax liabilities. That’s the American Way, for goodness sake!
As for the use of the photo to depict feelings, that was not essential to the piece. Rather it was an expression of hope that Barroway’s goal of a Stanley Cup would be in alignment with ours…to accomplish here in Glendale.
Joyce… if you were attempting to add a little sarcasm to the piece, I can accept that. Lord knows I throw a lot of it around myself. Been the nature of the beast.
However, as you can see the initial version didn’t come across too well. That and an ongoing issue with a gentleman on Twitter (promoting himself as a “professional sportswriter) deliberately spreading false rumors about the franchise didn’t help matters either.
But… I appreciate you adjusting your blog to reflect your real intent of the photo.
Legend…yes the numbers are unsubstantiated…no one knows…i base my thoughts on past losses from pre Ice AZ and what John Shannon reported..he has always been a team supporter and would not float 21M if it wasn’t close or possibly the smallest amount possible. I can’t imagine it being less. As for what LeBlanc said…it means nothing. ..we also don’t know..he would have said that regardless of it being correct or not. He also is not going to say “wow folks I dodged a bullet and am off the hook” is he?
Sorry , I missed this article when it came out.
I enjoyed it and the back and forth on the message board was FANTASTIC reading.
The only thing I have to say as a STH who has only missed 6 games in 3 years is this:
The market for hockey here is second to none…. That’s right, second to NO
NE!
I’ll be bold enough to say, I’ll bet there are more hockey fans here in the winter than there is in Chicago or Toronto!
The problem is that the vast majority of fans who wear other teams sweaters and scream against the Yotes when their favorite team is here
Also lives here for half or more of the year!
You see them at Fry’s, you see them at the park, they use up their share if the utilities, enjoy our parks and call home every time it’s. 70 here and below zero up there to brag that they live down here.
Yet
They feel no obligation to support the team, which is the team of their. 2 nd hometown, in any way.
They can’t make the Coyotes their second favorite team and buy a 5 pack if tickets or more….
They can’t support their communities NHL club because they like the thought of this level of hockey in their second hometown.
If the Coyotes marketing folks figure out how to market to these folks, we will never have a problem….
If you were to bet there are more hockey fans there in the winter than TORONTO, you would drastically lose anything you bet, my friend!!! Toronto is the biggest hockey hotbed in North America. This is a well known fact throughout the NHL… in BOTH Canadian and American cities.