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Wednesday, February 7, 2001
Local investor steps up, completes Coyotes group
Associated Press
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PHOENIX -- Developer Steve Ellman secured the money needed to complete his $88 million purchase of the Phoenix Coyotes, adding a prominent local businessman to the investment group.
Swift Transportation Co. executive Jerry Moyes joins the group that includes Hall of Famer Wayne Gretzky. Moyes' addition was vital to make sure the deal closes on Feb. 14, a day ahead of the third deadline set by the NHL and owner Richard Burke.
"Jerry is a partner of ours now," Ellman said Wednesday.
"He's a very smart man. I have all the confidence that we share
the same vision on trying to build a world-class franchise capable
of winning the Stanley Cup.
"We're both going to defer all the hockey-operations decisions
to Wayne, and Wayne is the man running that show."
Ellman declined to discuss Moyes' share of the team, and Moyes' secretary said he was traveling outside the state.
The East Valley Tribune reported that Moyes will put less into
the team than Ellman's $25 million stake, but enough to enable
Ellman to obtain the $10 million letter of credit required by the
French bank Societe Generale before it will loan Ellman the final $20 million needed before closing.
That should allow Ellman, picked by the city of Scottsdale in 1999 to redevelop the aging Los Arcos Mall, to complete his 11-month bid to buy the team and go to work on the mall project and its centerpiece -- a 17,100-seat hockey arena.
The Coyotes, who have been losing up to $20 million per season
while playing in the America West Arena in Phoenix, should be able
to turn a profit in the more spacious and luxurious new building,
Ellman said.
"We expect to run this like a business, and every business
needs to make money," he said.
Ellman let his relations with Scottsdale slide while dealing
with financing complications that forced him to overshoot a June 30
closing deadline and another on Dec. 31 after the first extension.
But he said his first priority after closing would be to work out a redevelopment agreement with the city to complete the $535 million mall project.
"The city of Scottsdale and I need to have a very serious conversation. It's time," Ellman said.
Burke negotiated with Ellman because he didn't want to sell to
anyone who would move the team out of Arizona, and said bringing
Moyes aboard looked like a positive step for the new ownership.
"Hopefully they are able to get it done," Burke said. "It
will be a relief if it happens -- for me and everybody else. This
needs some resolution, and we want them to go on to the next stage
and get the building built. Then it will all have been worthwhile."
Moyes quietly aligned with Ellman several weeks ago, but the
managing partner kept quiet about it until the news leaked.
"Jerry was critical to getting this done," Ellman said. "He's
a leader of this community, and this team is very grateful to him.
Jerry very much wants to keep hockey in the Valley (of the Sun).
He's doing this for the community and for our economy."
Moyes has been president and chief executive of Phoenix-based Swift since 1984, building it into a trucking network which operates in 24 states and Mexico.
He also owns parts of the Arizona Diamondbacks and Phoenix Suns,
and owns a major portion of SportsJet, a charter plane company that
the Coyotes, Diamondbacks, Suns and other teams use on road trips.
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