Ice Arizona sue for $3.5-million security deposit due to force majuere -- the NHL forced them to sell.

[Ciao]

After ditching Arizona, Coyotes sue to get $3.5M security deposit back

IceArizona, which owned the team, says it deserves its security deposit back despite breaking its lease for Mullett Arena.

www.phoenixnewtimes.com

Lawsuit reported in the Phoenix New Times: The Coyotes want their deposit back and have sued ASU, relying on a force majuere clause because they claim the NHL forced them to sell.

Neither side is talking.

 

[Fenway]

Alex Meruelo walked away with at least a half billion in pure profit, and is he doing this?

Meruelo played Bettman and the BoG like a violin. Why pick a fight with the State of Arizona for chump change?

 

[hangman005]

Alex Meruelo walked away with at least a half billion in pure profit, and is he doing this?

Meruelo played Bettman and the BoG like a violin. Why pick a fight with the State of Arizona for chump change?

Fun

 

[TheLegend]

Alex Meruelo walked away with at least a half billion in pure profit, and is he doing this?

Meruelo played Bettman and the BoG like a violin. Why pick a fight with the State of Arizona for chump change?

I think your estimate of his profit is high. After you account for the debt he assumed when he took over the franchise and losses in between.

But yeah this doesn't make any sense. Even if he were happen to win (and I don't think so) the lawyer's fees would eat it all up anyway,



EDIT: Thought just occurred to me is if this is Alex Meruelo Jr. doing this? IIRC, after the sale of the Coyotes hockey ops and players were sold, IceArizona was turned over to him to oversee the Tucson Roadrunners.

 

[Voight]

Alex Meruelo walked away with at least a half billion in pure profit, and is he doing this?

Meruelo played Bettman and the BoG like a violin. Why pick a fight with the State of Arizona for chump change?

Because hes a grifter and always has been.

 

[aqib]

I think your estimate of his profit is high. After you account for the debt he assumed when he took over the franchise and losses in between.

But yeah this doesn't make any sense. Even if he were happen to win (and I don't think so) the lawyer's fees would eat it all up anyway,



EDIT: Thought just occurred to me is if this is Alex Meruelo Jr. doing this? IIRC, after the sale of the Coyotes hockey ops and players were sold, IceArizona was turned over to him to oversee the Tucson Roadrunners.

If the purchase price was $500M which is what I remember reading then he made $500 million minus whatever losses he took over 5 years. So he probably took home a couple of hundred million. He probably didn't put in that much of his own cash and assumed the debt in place. He did get a solid return but not $500M.

They are probably hoping for a quick settlement and will drop it if there is any resistance.

 

[TheLegend]

If the purchase price was $500M which is what I remember reading then he made $500 million minus whatever losses he took over 5 years. So he probably took home a couple of hundred million. He probably didn't put in that much of his own cash and assumed the debt in place. He did get a solid return but not $500M.

They are probably hoping for a quick settlement and will drop it if there is any resistance.

Forbes had the sale at around $300 million in 2019.

Alex Meruelo May Get The Arizona Coyotes For Roughly $300 Million

The assumption of the team’s debt may be all that is required to buy it.

www.forbes.com

The sale left Andrew Barroway with a 5% share of the franchise. Which would indicate that was all the equity he had in it at the time and the rest was debt. Add in $30-50 million in losses for the last 5 years, plus the $7 million he claimed he spent on the TED project and who know what else. It all starts adding up.

[Edit: Add another $30 million for the upgrades to Mullett Arena]

But I'm not going to get into another protracted megathread style debate over this. More interested in what this latest suit is about and whether it's Alex Senior or Juniors who's pushing this.


SI has picked up on the story BTW.....

Former Coyotes Owners Sue Over Arena Deal

It's been almost a full year since the Arizona Coyotes suspended hockey operations, but they aren't fully gone, and neither are their owners unfortunately. On F

www.si.com

 

[aqib]

Forbes had the sale at around $300 million in 2019.

Alex Meruelo May Get The Arizona Coyotes For Roughly $300 Million

The assumption of the team’s debt may be all that is required to buy it.

www.forbes.com

The sale left Andrew Barroway with a 5% share of the franchise. Which would indicate that was all the equity he had in it at the time and the rest was debt. Add in $30-50 million in losses for the last 5 years, plus the $7 million he claimed he spent on the TED project and who know what else. It all starts adding up.

But I'm not going to get into another protracted megathread style debate over this. More interested in what this latest suit is about and whether it's Alex Senior or Juniors who's pushing this.


SI has picked up on the story BTW.....

Former Coyotes Owners Sue Over Arena Deal

It's been almost a full year since the Arizona Coyotes suspended hockey operations, but they aren't fully gone, and neither are their owners unfortunately. On F

www.si.com

I thought Barroway bought for $300ish million.

Google tells me Barroway bought for $305 million and then AM for $425M and then proceeded to lose $30-60M per year. So even at the high end he still made over $200 million. Not bad

As far as the lawsuit goes, are judges in Arizona elected? Not that this would be a campaign issue but I can't see a judge going "yeah you had no choice, ok tax-payer supported institution cut him a check"

 

[TheLegend]

I thought Barroway bought for $300ish million.

Nearly all of it financed.

Google tells me Barroway bought for $305 million and then AM for $425M and then proceeded to lose $30-60M per year. So even at the high end he still made over $200 million. Not bad

YMMV

As far as the lawsuit goes, are judges in Arizona elected? Not that this would be a campaign issue but I can't see a judge going "yeah you had no choice, ok tax-payer supported institution cut him a check"

Depends….. Most are appointed but there is a finite term and it requires a yes/no vote of the public whether or not they stay on the bench after each term is up.

 

[russ99]

Meruelo still owes them back rent and wants his deposit back? What other lease would ever work that way?

What a loser.

 

[TheLegend]

Meruelo still owes them back rent and wants his deposit back? What other lease would ever work that way?

What a loser.

No.... Meruelo paid up front for three years and only played two.