News late Friday evening tells us that the Phoenix Coyotes, the NHL and the City of Glendale have reached an agreement to keep the team where it belongs. The problem is that the deal is only a temporary solution and gives the sides one more year to reach a permanent solution. The Glendale City Council will vote on the new deal on Tuesday according to an official team source.
The Phoenix Business Journal reports that Glendale will pay the NHL another $25 million to help cover losses for another season while a long-term solution is worked out. If approved by the city council, the agreement would ensure the Coyotes play the 2011-12 season at Jobing.com arena and avoid having to move to Winnipeg, Canada.
The NHL is on board with another interim deal according to this statement from NHL deputy commissioner Bill Daly.
"As we have for the past two-plus years, we have been working very closely with the city of Glendale to do everything possible to ensure the Coyotes' future in Glendale. At the city's request, we have agreed to pursue another one-year interim arrangement while we jointly pursue a long-term ownership solution. We remain confident that one exists, and we intend to continue to pursue it."
This is good news for Phoenix hockey fans that filled the arena to 71 percent capacity this past season but it is far from the permanent solution that was hoped for.
The agreement to sell the team to Matthew Hulsizer is still on the table according to Phoenix Business Journal sources, but more time is needed due to the objections raised by the Goldwater Institute which scared away investors in the city's bonds which were needed to close the deal.