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Phoenix Coyotes owner offered to finance new arena to hasten action

Associated Press

SCOTTSDALE, Ariz. Phoenix Coyotes owner Richard Burke says he recently offered to pay the entire $170 million cost of a new arena that's to be part of a slow-moving redevelopment plan, a newspaper says.

''If paying for the whole thing isn't good enough, we can't do more,'' Burke told the Tribune, a newspaper serving suburban Phoenix.

Bob Kaufman, a senior vice president with the developer, the Ellman Cos., declined comment on that offer but told the Tribune an investor group put together by company owner Steve Ellman is ''very, very close'' to buying the franchise from Burke.

Burke told the newspaper that no sale was immiment and that Ellman hadn't been authorized to broker a deal but rather merely to identify potential buyers.

Burke made his full-financing offer in mid-December. It included pledging $7 million a year to the development team with that money to come from naming rights, corporate sponsorships and luxury suite revenue, the newspaper said.

Burke said he was willing to put up the entire franchise and future arena revenue streams as collateral.

Timing has been a problem all along and is seen as one of increasing concern. Ellman has yet to apply for necessary permits, such as for demolition of buildings that are part of the defunct shopping center where the arena and a combination of movie theaters, restaurants and retail stores are to be built in a $535 million complex.

Burke has said that with a construction schedule of 18 to 20 months, work needs to begin this month if the 18,000-seat arena is to be ready for the intended October 2001 opening.

The team's lease at America West Arena in Phoenix expires 30 days after the 2001 season, though an extension has been promised.

But the inadequacy of the arena for hockey, and the revenue situation there, are factors that led Burke to press for the team's own arena.

The Tribune said the financial reports it saw showed that the franchise lost $23 million over the last two seasons.

Politics adds a dimension to the timing as well since Scottsdale elects a new mayor and three City Council members in March.

Kaufman said the way to solve the timing problem is through quick action on buying the team from Burke. Ellman visited New York last week to line up investors and for a preliminary discussion with NHL Commissioner Gary Bettman.