The NHL must be content to keep losing money—the projected loss this year is $20 million—in the sinkhole it calls the Phoenix Coyotes.
In the latest development—currently not mentioned on the NHL's official Web site—the league wants to sue the team's old owner, Jerry Moyes, for $61 million to recoup some of the losses incurred by the team.
That sum is broken into sections: $30 million for violating a league agreement by refusing to fund the Coyotes obligations; $10 million for violating his duty to the league; $10 million in punitive damages; and $11.6 million to cover amounts the NHL paid to Coyotes creditors.
Naturally, Moyes plans to countersue.
In reviving a dormant conflict, the NHL doesn't seem to be worried about what effect this new lawsuit might have on investors.
Currently, the only bidder for the team who wants to keep it in Phoenix—as long as the Coyotes can play some of their regular season games in Saskatoon, Ice Edge—is negotiating with the City of Glendale to work out an agreement so that the team can turn a profit for the first time ever.
The team has never m ...
Read Full Article at Bleacher Report - NHL
Article written by Steve Thompson
NHL Won’t Get Investors with Latest Coyotes Feud
March 10th, 2010 by Steve Thompson Leave a reply »
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