Last night, Josh Kosman of the New York Post reported that the the NHL is currently preparing to sell the Arizona Coyotes to Bill Foley in order to relocate the team to Las Vegas in time for the 2016-17 season. Foley is the major investor in an effort to bring a hockey team to Sin City. According to Craig Morgan of Fox Sports who covers the team, Commissioner Gary Bettman has denied Kosman’s claims. So who should we believe?
On the one hand, the New York Post is not exactly the most reputable news source, and Kosman’s only real evidence is from “two sources close to the situation.” He offers no details other than this would take place in the 2016-17 season, but he does not reveal how close this is to happening, any figures involved, or any other small speck of information. On the other hand, it is not as though Gary Bettman never tells a lie. His vehement denial also calls to mind, “Thou doth protest too much,” which then makes one wonder if there is any truth to the rumor.
It is not as though this is a situation that is out of the realm of reason. Earlier in June, the Glendale City Council voted to terminate the fifteen-year, $225 million lease agreement of the Gila River Arena. The council has claimed that they would be willing to renegotiate but were still pursuing ending the contract. Add to that the financial troubles of the organization, and it seems entirely plausible that the team would be relocated. However, Bettman has been adamant about keeping a team in Arizona and has gone to great lengths to ensure that.
While this deal may be in play, it seems far more logical that Bettman would wait before putting any deal in place. On July 6th and continuing through August 10th, the NHL will be accepting applications for expansion. Las Vegas, Seattle, and Quebec City are suspected to be the frontrunners in that race. One of the great advantages for the NHL to expand rather than relocate is that the expansion fees would most likely be higher and, more importantly, would not be shared with the players because those fees do not count toward hockey-related revenue per the new collective bargaining agreement. Always follow the money.
In February, when Foley held a Vegas ticket drive to prove that there was indeed interest in hockey, it was believed that the expansion fee could be targeted somewhere between $450 to $500 million, a price set when the New York Islanders sold for $450 million. Since then, the expansion fee has been predicted to exceed that, especially if it were in a city in the greater Toronto area or Quebec City.
According to Brendon Porter of Five for Howling, the relocation fee for the Coyotes would only be between $200-$300 million dollars. Foley may prefer saving a few hundred million and try to push Bettman for relocation. However, Dana Lane of DanaLaneSports.com, who has been a great advocate for bringing a team to Vegas, says that Foley has always pushed for an expansion team. It does not seem that Foley cares whether through expansion or relocation that he gets his team, but he definitely wants a team there.
For now, the Arizona Coyotes are still the Arizona Coyotes.