“Here we go again,” was the the immediate response and feeling last week when it was announced that the Arizona Coyotes were sold to Andrew Barroway, who is the 51 percent controlling interest owner of the team. Barroway paid $153 million for a franchise that has struggled for survival for most of its 18 years in the Valley of the Sun.
The team was operated by the NHL for several seasons as the league searched for ownership that would keep the team in Glendale, AZ. A group known as “Ice Arizona” purchased the Coyotes prior to the 2013-14 season and part of the contract was that they could move the team if after five years they have sustained losses of $50 million.
Barroway States Commitment
“I’m committed to be here,” said Barroway. “It’s a beautiful place. We have some passionate fans. We can build a winning, long term organization here and really, really thrive.”
Barroway stated that he is committed to making hockey thrive in the desert and quickly shot down reports that he wanted to flip the team for a quick profit or move it. The Coyotes have seen the value of the franchise increase from $170 a year ago to a current value of $305 million.
“I’m buying this team because I’m a life long sports and hockey fan and it’s been my dream to become an owner,” Barroway said. “I want to bring a winner to the Valley.”
Team President Anthony LeBlanc will remain in that role with the team and the rest of the Ice Arizona ownership group that purchased the club from the NHL will keep its minority stake in the team.
Investment in Infrastructure
The Coyotes have one of the lowest payrolls in the NHL and need more investment in scouting and player development as those areas were neglected when they were owned by the NHL. That is expected to be where Barroway will make his immediate investments in the team.
Barroway said that he will soon move to the Valley and be an active owner. He made his fortune as a hedge fund manager in Philadelphia. He believes that the Coyotes and the NHL area strong investment opportunity.
“I put a lot of my own economic resources into this,” he said. “I believe in this team and I believe in the NHL.”
Arizona’s 2012 run to the Western Conference Final did spark interest in the area but stable ownership is the key to any potential long term success for this franchise.
