Moyes Agrees to Sell Coyotes to NHL

We are one step closer to some semblance of finality surrounding the Phoenix Coyotes, after owner Jerry Moyes (pictured right) agreed to sell the franchise to the NHL. The agreement was announced in U.S. Bankruptcy Court Monday, but still must be approved by Judge Redfield T. Baum. Attorneys say the deal is for $128 million.

With no money to cover the franchise's expenses, and the inability to sell to Jim Balsillie after the court nixed that idea, selling the franchise to the league was Moyes' only realistic answer. They'll take control of the day-to-day operations of the franchise while looking to find an independent owner. Of course, after the way this has played out, any prospective owners who would move the team out of Arizona need not apply.

In a Monday statement, NHL deputy commissioner Bill Daly said: "In Phoenix today, a tentative agreement was reached among the parties to amend the NHL's offer to purchase the Coyotes franchise out of bankruptcy, and a proposed order, mutually agreed to by the parties, will be filed with the Court seeking approval of the NHL's amended bid.

"If there is no objection from the parties involved, and subject to any potential objections and a hearing if necessary, the parties hope to close the sale of the Club to the NHL by Monday, November 2.

"It remains the NHL's intention upon taking control of the Club to stabilize the Club's operations and, as quickly as possible, to re-sell the Club to a new owner who is committed to operating the Club in the Glendale/Phoenix market."

Daly confirmed that NHL officials, including commissioner Gary Bettman, met on Monday with representatives of Ice Edge, a group that has said it plans to keep the team in suburban Glendale. Daly said other potential buyers have also expressed interest, but he didn't identify them.

Last month, Baum rejected outright Balsillie's offer to buy the team for $242 million and move it to Canada. The judge also turned down the NHL offer but he left the door open for the league to purchase the franchise if it amended its bid to treat Moyes and Gretzky, the ex-coach, more favorably.

Monday's agreement is essentially the same as the NHL's original bid.

"Clearly, from an understanding, it remains unchanged," Daly said. Given the dire financial circumstances surrounding the club, however, Moyes couldn't afford to sit around for a better offer that clearly wasn't coming, even if accepting this one means taking a loss that is reported to be close to $100 million.

The agreement would provide the nearly $80 million that is owed SOF Investment, the largest secured creditor, and the NHL would get the $37 million it is owed for funding the team since last fall.

Between $9 million and $11 million would be available to be divided between Moyes and Gretzky.

The situation is similar to that of the Montreal Expos, the Major League Baseball team that was purchased and operated by the league, moved to Washington, and sold from the league to the Lerner Enterprises group.

The Coyotes have struggled thus far this season to get fans to come to games. After a rare sellout at their home opener, the team has had a tough time topping 10,000 in attendance per game.

Yet ironically, amidst all the turmoil and uncertainty that has surrounded the Coyotes for months, including a climactic September that saw then-coach and partial owner Wayne Gretzky go MIA while everything was being worked out and eventually resign, the team is doing well. Despite Monday night's 5-2 loss to the Rangers, the Coyotes still have 12 points (6-4-0), good enough for eighth place in the West. For a team under the circumstances the Coyotes are facing, and given their expectations for the year, that sort of start is near miraculous.

Information from the Associated Press was used in this report.