Judge approves sale of Coyotes to NHL

Published online on Monday, Nov. 02, 2009

The Phoenix Coyotes are now owned by the National Hockey League after a bankruptcy judge on Monday approved the transfer of franchise from Jerry Moyes to the league.

Moyes and the NHL agreed to the deal last Monday, and a week later U.S. Bankruptcy Court Judge Redfield T. Baum signed off on the transaction.

According to the Arizona Republic, the purchase price was $140 million. The league will continue its efforts to find a buyer that will keep the team in Arizona.

Moyes entered into Chapter 11 bankruptcy in May and tried to sell the franchise to Canadian billionaire Jim Balsillie, who wanted to relocate the club to Hamilton, Ontario. The league interceded because it does not want the team moved.

"We are pleased and very encouraged by today's developments in court," NHL deputy commissioner Bill Daly said in a statement. "Now that approval of the proposed sale has been entered by the court, the National Hockey League will work to close the transaction quickly and assume full control of the Coyotes' business operations. The league also will engage immediately in a process to identify -- and expedite sale of the franchise to -- new ownership that is committed to the club's long-term success in the Phoenix/Glendale area. We do not intend to comment publicly on that process."

Baum rejected Balsillie's bid to purchase the team out of bankruptcy in September, and also denied the NHL's first offer. The league altered its proposal last month.

Ice Edge Holdings, a business group from the United States and Canada, has an interest in buying the Coyotes.

Since moving to Arizona in 1996 from Winnipeg, the team has consistently lost money and has had trouble drawing a fan base. The Coyotes have only made the playoffs five times since going to the desert and have never made it past the first round. Also, the team has had just one winning season since last making the playoffs in the 2002-03 season.