The Coyotes saga may be coming to an end but would Winnipeg prove to be a successful market?
The days of Phoenix Coyotes players golfing on their off days during the season appear to be coming to an end.
Maybe they can take up curling. Or ice fishing.
Although the NHL denies it, it appears the Coyotes will once and for all move with the destination most likely being Winnipeg. That's the story that has been making the rounds the past 48 hours as one of the longest and most drawn out sagas in NHL history, appears to be coming to a conclusion.
This thing has been dragging on for what seems like an eternity. Remember when Jim Balsillie was going to buy the Coyotes and move them to Hamilton a couple of years ago? Former Chicago White Sox and Bulls owner Jerry Reinsdorf once expressed an interest in owning the team, but many contend he was never that serious about taking on the potential financial losses. Ice Edge, a group of Canadian and American businessmen led by Daryl Jones, kicked the tires and said if it got the Coyotes, some of the team's regular season games would be played in Saskatoon.
More recently Chicago businessman Matthew Hulsizer has been negotiating with the NHL in an effort to get his paws into the team through a sweetheart deal. The sticking point is the city's inability to sell $100 million in municipal bonds because the Goldwater Institute, which is a public watchdog group, says it will take the city to court if the sale of the bonds is permitted. Goldwater maintains such a sale is illegal in Arizona.
Blah, blah, blah…
At the end of the day, hockey just won't go in Phoenix. The NHL hopes a long playoff run by the Coyotes would generate last-ditch interest in the club, but that is the longest of long shots.
The question now is will it be a success in Winnipeg? The Jets played in Winnipeg from 1972 to 1979 as part of the World Hockey Association and from 1979 to 1996 as a member of the National Hockey League. Bobby Hull was the face of the organization when the Jets played in the WHA. Andres Hedberg and Ulf Nilsson were among the first Europeans to make it big in North America. Dale Hawerchuk began his Hall of Fame career with the NHL Jets. Other notable players for the Jets included Thomas Steen, Randy Carlyle, Dave Babych, Laurie Boshman and a kid named Shane Doan, the current captain of Phoenix who played his rookie season with Winnipeg.
Ultimately, the owners of the Winnipeg Jets got tired of losing money and couldn't find local interests who were willing to purchase the team so it headed for the desert. That's the funny thing about many millionaires - they actually like to hang on to their money. Now Mark Chipman, owner of the American Hockey League's Manitoba Moose, is the driving force behind bring the Jets, er, Coyotes, home to Winnipeg. The Moose is the farm team for the Vancouver Canucks.
Could somebody really make a go of it in Winnipeg? The feeling is, in the short term, yes. There would be a lot of enthusiasm in the city if an NHL team returns and the club could probably coast for three or four years. But, at some point, reality could set in. Just because a team relocates in hockey-mad Winnipeg, does not guarantee long-term success.
The MTS Centre, which was opened in 2004 and is owned by True North Sports and Entertainment, seats slightly more than 15,000 and has 48 luxury suits. However, there is very little corporate money available in Winnipeg. A team like the Toronto Maple Leafs rakes in more than $70 million in corporate money each year. The Jets, or whatever they are called, would be lucky to get $10 million.
Also, how much local TV money could the team expect to draw? Toronto gets around $30 million a year while the Vancouver Canucks get in the neighborhood of $20 million. Winnipeg would be lucky to get $10 million a year. As much as the NHL is a gate-driven league, teams require more than straight ticket sales to make a profit.
Perhaps the biggest factor is the Canadian dollar. It is currently valued higher than its American counterpart, but who's to say a year or two or three from now that will be the case. If the Canadian dollar were to take a significant dip, as it has over the years, it would be horrible for a small market, Canadian-based NHL team such as Winnipeg.
Acknowledging this, one source wondered, "Can the owners sustain losses of $30 million a year?"
Listen, the NHL has, in all likelihood, run its course in Phoenix. The writing has been on the way for years, no matter what NHL commissioner Gary Bettman insists. The Coyotes have their fare share of passionate fans…just not enough of them.
This time it looks like the NHL really is returning to Winnipeg. Here's hoping the new owners of the team are able to overcome the obvious obstacles and is a success over the long haul. Good luck.
