The sale of the Phoenix Coyotes to Jerry Reinsdorf is in jeopardy.
Sources tell TSN the city of Glendale has asked Ice Edge Holdings to return to the bargaining table as a back up plan to buy the Coyotes, in the event the deal with Reinsdorf falls through.
And the city of Glendale could file a document Friday outlining an exclusivity agreement with Ice Edge.
But before it gets to that point, sources say Ice Edge wants to make sure the NHL has assurances from the Glendale that the city intends to fund losses for next season.
If Ice Edge doesn't receive confirmation of this from the NHL, this group may not move forward.
Sources say Glendale reached out to Ice Edge late last week amid growing concern Reinsdorf's accepted bid to purchase the Coyotes from the National Hockey League is at risk of falling apart.
Until now, Ice Edge and city officials have had nothing more than initial discussions, which are expected to continue Friday, and there is no guarantee Ice Edge will be willing to fully engage in a negotiation to buy the Coyotes. But at this stage, it's believed the Ice Edge group is willing to listen.
Last month, the city of Glendale voted unanimously (6-0) in favor of Jerry Reinsdorf's proposal and voted 5-1 against a bid submitted by Ice Edge Holdings.
Recently, Ice Edge representatives also met with NHL commissioner Gary Bettman and deputy commissioner Bill Daly to review the Phoenix sales process and to also reiterate their continued interest in buying an NHL franchise.