The NHL and Renaissance Sports & Entertainment are nearing an agreement on the sale of the Phoenix Coyotes organization for $170 million, according to Mike Ozanian of Forbes. The deal is pending the group's ability to come to terms on a lease agreement with the city of Glendale for Jobing.com Arena.
Citing a source, Ozanian reports that Renaissance Sports will receive an $85 million loan from the NHL in order to help with the purchase. The group, headed by George Gosbee, will also receive $120 million from the Fortress Investment Group, which will be repaid by the fee Glendale will be asked to provide as part of the arena lease. Renaissance will provide $45 million.
The excess $80 million of that equation will be used as operating capital.
In addition, Gosbee and his group will not be required to begin repaying the NHL's loan for five years. Fortress also has the option of swapping its loan for equity in the franchise, which could result in a 20 percent equity stake. However, this deal still requires the city of Glendale to sign off on a new lease agreement. In the past, this has been a stumbling block in negotiations.