This story seems to be evolving and changing by the day, it was looking better yesterday. While today's turn of events does not appear to be good for the city of Winnipeg right now, this could change again if the city of Glendale doesn't agree to pay any and all operating losses for the Coyotes next season. - Stay tuned.
The City of Glendale and the Ice Edge Holdings group have agreed on all points on a new lease agreement that would keep the Phoenix Coyotes in Arizona, sources told ESPN.com Friday evening.
The two sides are expected to sign a letter of exclusivity by early Monday morning, which will formally end the bid of Chicago sports tycoon Jerry Reinsdorf, although sources told ESPN.com that the city has not considered the Reinsdorf bid viable for some time now.
Ice Edge will not, however, agree to have its new memorandum of understanding submitted to the City Council for a vote until Glendale agrees to a number of conditions outlined by the NHL, chief among them that the city will agree to pay any operating losses the Coyotes might incur next season if a deal to sell the team collapses.
Those requirements will be discussed by City Council at its public meeting Tuesday in Glendale.
Although it's possible the city could find itself on the hook for between $20 million and $30 million in operating losses if a deal with Ice Edge or any other potential buyer moving forward collapses, it's believed Glendale will agree to the league's conditions because the NHL will exercise its right to move the team without those assurances.
It's believed Winnipeg would be the prime target for relocation, sources have told ESPN.com, and that a deal to sell the team to interests in Winnipeg could be completed quickly if Glendale cannot satisfy the league's conditions. [ESPN.COM]
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