Photo of a game between the Phoenix Coyotes and the Detroit Red Wings.

Image Credit: JPowers65 - Flickr (CC BY-SA 2.0)

May has been a historic month for the NHL's Phoenix Coyotes. Shortly before edging out the Nashville Predators for a Western Conference Final berth,  a well-credentialed businessman has agreed to purchase the franchise that filed for bankruptcy three short seasons ago.

Former San Jose Sharks General Manager Greg Jamison and a group of investors have agreed to shell out more than $170 million for the Coyotes which would likely eliminate any hopes of the Quebec Nordiques returning to Quebec City. Jamison has a proven track record of success by building a strong fan base in San Jose; a franchise that was also once irrelevant.

After the NHL revived the Phoenix Coyotes in 2009 by rescuing the organization from bankruptcy, the franchise has still consistently been dead last in NHL attendance. The fact that the franchise continues to lose millions of dollars in the desert raises the question of why anyone would consider the Phoenxi Coyotes a good investment. The city of Glendale will begin paying the franchise nearly $15 million per season to remain in the city; a decision that still needs to be voted on by the Glendale city council.

The main incentive to keep the Coyotes in Glendale is that they're the primary tenant in a relatively new arena. A vacant Arena would be a waste of the millions in taxpayer dollars used to construct the venue. However, area residents are excited about the Coyotes new lease on life while many others could care less if the team relocated to another city. A relocation would place a large burden on the National Hockey League via the enormous relocation costs.


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