I have two other blogs plus the rumour chart (which launches today) to tweak...however, this just was brought to my attention. I am currently getting a ton of emails regarding my thoughts on this situation. As many of you know, I have strong opinions. I am taking my time with my opinions on this one. I did an interview with Balsillie's group and I am currently getting follow-up questions answered from them.

I have also talked to three owners and the NHL. My story is coming, but not until I have the answers that I know you all want. The answers the great people of Canada are owed, and the answers the great fans of Phoenix are overdue.

I will write that story.

For now however, here is another piece of the puzzle fro the Arizona Republic. A letter from Jerry Moyes explaining where he is right now. It is a well written, very interesting letter to say the least.


Coyotes' owner: I was trying to aid Glendale

My Turn

I read with interest your May 8 editorial "Ariz. hockey fans can be loyal if given a reason," which reminded me of the axiom: "No good deed goes unpunished."

I say this because I evolved from providing a small loan, to becoming primary lender, to being forced to take over the ownership of the Phoenix Coyotes, making me, in that respect, an "accidental owner" of the team.

I got involved trying to help Glendale, which has been my hometown for 42 years. Let me explain.

I built my trucking business here and, for decades, have given time, effort and money to support Glendale and the West Valley. When Steve Ellman (the developer of Westgate and owner of the Coyotes at that time) was struggling to complete the financing for the purchase of the team, I was asked to guarantee a line of credit for $5 million, which quickly grew to $30 million in guarantees to the bank lender and the National Hockey League.

I continued to provide additional funding trying to protect my investment and because many people were trying to create a renaissance of sorts for Glendale. I supported bringing the Arizona Cardinals to Glendale on land for which I held an option and obtained no compensation for relinquishing.

Because my financial stake grew to more than $200 million, I eventually had to force the splitting of the Coyotes and the management of the arena from the Westgate development and take control of the Coyotes as the owner.

Unfortunately, the arena leases and agreements were constructed so that, in some ways, they subsidized the development of Westgate. This may have made economic sense when both entities were combined, but on a stand-alone basis, these agreements did not pencil out economically. Let me stress that all who have objectively looked at this issue recognize that our financial problems result primarily from the structure of our agreements and not the management of the team. Even a winning team would not stop us from losing money unless we received some concessions.

We have been talking to Glendale for some time about our financial problems and its officials are well aware that we are unable to continue sustaining these significant annual losses. But the city officials never made firm commitments to help us. Instead, we understand they started talking directly to the NHL and potential investors. It may be fair for the city to have discussions, but it would not be fair for the city to strike a deal with outsiders that has not been offered to me.

As the managing member and CEO of the Coyotes, I have been seeking additional investors or a buyer, as I have a responsibility to all of the creditors of this business. No one other than Canadian businessman Jim Balsillie's company has offered enough to pay the creditors, which led to my initiating a court-supervised sale process. This process will be open and transparent, and all offers current and future must be fairly examined; guaranteeing an equitable offer.

I know I will lose more than $200 million invested in capital and the majority of my loans to the team, no matter what. I have come to terms with that. But I don't think it's reasonable for the city or the NHL to go to the next person with deep pockets and give that person a deal they would not give me and the investors I sought to attract.

Jerry Moyes owns the Phoenix Coyotes.

Join the Discussion: » Comments » Post New Comment

» UFA Season Starts Now. Top Five Centers.

» Four Games on Monday: Who Are Your Picks? Mon's Buzzcast

» Home Teams Ruling the Day. Will It Continue? [email protected]. UFA's Tomorrow.

» Get Ready for The Utah Outlaws.

» The Buzzcast Predicts The First Round