| | PHOENIX -- An ownership group has been formed to buy out
Phoenix Coyotes owner Richard Burke, who believes his inability to
reach agreement with an arena developer threatens the team's
stability.
"That's been going on for probably the last week," team
president Shawn Hunter said Saturday night. "Obviously, there's a
group that's interested in buying the team, but ultimately we have
to see whether or not they're for real and whether Richard wants to
do that."
Hunter said the negotiations were too preliminary to discuss
whether Burke would accept a minority shareholder's position in new
ownership.
"His ultimate goal is to be the owner and have it be successful
long-term, but he's said, "Hey, if it takes a different structure
..." he's going to do it," said Hunter, the only president the
Coyotes have had since Burke moved the former Winnipeg Jets to
Arizona in 1996.
He made his remarks during the Coyotes' 4-2 victory over Anaheim
in the the America West Arena, where the Coyotes' lease expires
after the 2000-2001 season.
Phoenix Suns president Jerry Colangelo, who acts as the arena's
landlord, said Sunday that he would be willing to draw up a
temporary lease extension for the Coyotes if the NHL team's new
facility is not built in time.
"If they are set on moving, we'll do what we can to help them
through the transition," Colangelo told The Arizona Republic. "If
that means working something out for them to stay for an additional
year or more, we're more than happy to do so."
The Tribune, a newspaper serving suburban Phoenix, reported
earlier Saturday that the founder of the Ellman Cos. was acting as
broker to line up potential investors, and that Ellman might join
one or more to buy out Burke.
Burke is anxious about the future of the Los Arcos project, a
$535 million mall redevelopment in suburban Scottsdale with an
18,000-seat hockey arena as its centerpiece.
The Coyotes and Ellman persuaded voters in November to approve
public funding for part of the project, but Scottsdale officials
said last week no one had applied for the construction permits.
Burke, eyeing the planned October 2001 opening of the arena,
wanted groundbreaking to begin this month. Instead, he and Ellman
have failed to agree on finances or a construction timetable.
Scottsdale voters will elect a new mayor and several new City
Council members in March, and unless a redevelopment agreement is
in place by then, newcomers to the council could decide not to
commit the public funds the electorate authorized. That, in effect,
would kill the project.
Ellman founder Steve Ellman met with NHL Commissioner Gary
Bettman last week. He declined comment when reached by the Tribune
on Friday.
Forbes magazine listed the Coyotes franchise value at $89
million last year. Burke paid $65 million for the former Winnipeg
Jets franchise, which he moved to Arizona in the summer of 1996.
The arena seats only 16,210 for hockey. Phoenix Mayor Skip
Rimsza offered a $12 million plan last March to fix and replace
3,300 seats from which only one end of the ice is visible, but
Burke rejected the plan in favor of Los Arcos.
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