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Report: Coyotes receiving financial assistance from NHL

TSN.ca Staff

12/24/2008 2:36:23 AM

The Phoenix Coyotes are faring well on the ice but off the ice, it appears to be a different story.

According to The Globe and Mail, the Coyotes are receiving financial assistance from the National Hockey League to keep the team afloat. The report indicates the team is receiving advances on their share of league revenue.

While NHL deputy commissioner Bill Dayl would neither confirm nor deny the Coyotes were being assisted, he did tell The Globe and Mail via e-mail that ''advances on league distributions are not unusual.''

Financial documents obtained by The Globe and Mail show the Coyotes have pledged the franchise and all its assets as collateral for loans from a New York company.

A source told The Globe and Mail the Coyotes have already talked to the city of Glendale about renegotiating their 30-year lease at Jobing.com Arena. Under the current agreement, only a declaration of bankruptcy would allow the Coyotes to break the lease and relocate the team.

Owner Jerry Moyes is expected to lose more than $30 million this season and has reportedly lost up to $200 million since he purchased the franchise for $120 million seven years ago.