Jerry Reinsdorf could be out and Ice Edge Holdings back in as the potential new owner of the Phoenix Coyotes.
ESPN.com reported Thursday night that the Reinsdorf's bid for the Coyotes is dead
and the city of Glendale is scrambling to bring Ice Edge back to the table.
Glendale needs to work out a new lease deal for the Coyotes and their eventual owner and the National Hockey League needs to finalize a sale by the end of June. If no deal is struck, the bankrupt hockey team likely will be sold to a Canadian ownership group and moved in the off-season to Winnipeg.
A source with direct knowledge of the Coyotes situation confirms there are problems with lease negotiations between Reinsdorf, who owns the Major League Baseball's Chicago White Sox and the National Basketball Association's Chicago Bulls, and Glendale, which owns Jobing.com Arena.
That same source and the ESPN story said Glendale is trying to bring Ice Edge back into the fold. The Glendale City Council previously turned down a lease deal with Ice Edge, instead going with Reinsdorf.
Glendale and the NHL have been trying to sell the Coyotes to Reinsdorf since last year. Questions about how much cash Reinsdorf would put towards a sale have been evident throughout those discussions. The latest deal hinged on Glendale and Westgate City Center owner Steve Ellman setting up a special bond district to help finance the deal including payouts to Reinsdorf and the NHL.
The NHL bought the team in October for $140 million. The league has been running the Coyotes but won't do so next season. The Phoenix Business Journal reported in March the NHL was talking to Toronto billionaire David Thomson about buying the Coyotes if a deal in Arizona could not be done.Thomson's ownership group would then move the team to Winnipeg this off-season.
The Canadian sports outlet TSN also was reporting the Reinsdorf bid for the Coyotes was in jeopardy. The ESPN story said Glendale could file new documents to revive its negotiations with Ice Edge on Friday.
Glendale city officials, Ice Edge and Reinsdorf business partner John Kaites did not respond to request for comment Thursday evening
Phoenix Business Journal