Sunday, 24 July 2016
Last updated 1 day ago
Oct 19 2010 | 1:38am ET
Another hedge fund manager appears likely to join the ranks of National Hockey League owners.
Peak6 Investments' Matthew Hulsizer has made a $25 million good-faith escrow deposit and has reached an agreement in principle on a multi-year lease for the Phoenix Coyotes' arena in Glendale, Ariz. Now all he needs to do is reach a deal with the NHL, which has owned the team since it filed for bankruptcy last year.
It is not clear how close to a deal Hulsizer is: Canada's TSN reports that he is the leading suitor, while the Globe & Mail says that talks between the hedge fund manager and NHL have stalled. Hulsizer is reportedly reluctant to pay the $165 million that the NHL wants, and the NHL is reluctant to take a loss on the team.
Glendale has reportedly agreed to cover up to $100 million in losses suffered by the Coyotes, which have lost an average of $30 million in each of the 14 seasons since it moved from Winnipeg, Manitoba, to the Phoenix area. The NHL wants to keep the team in Arizona, but would be willing to sell to an owner who would move the team if it can't find a buyer by the end of the year.
In March, Vinik Asset Management's Adam Vinik bought the Tampa Bay Lightning. Meanwhile, another alternative investments honcho, Tom Hicks, is seeking to sell his Dallas Stars after defaulting on $525 million in loans last year.