Six months after he became the majority owner of the Arizona Coyotes, Andrew Barroway will step into a lesser role with the club, multiple sources told FOX Sports Arizona.
The change is not expected to impact the hockey operations budget as the team approaches free agency.
Barroway is the Managing Partner of Merion Investment Management LP, an event-driven hedge fund that manages more than $1 billion. His addition to IceArizona helped the club eliminate its high-interest loan with Fortress Investment Group.
Barroway originally bought 51 percent of the Coyotes in a deal that was finalized on Dec. 31, 2014. His purchase was based on a $305 million equity valuation of the team.
He tried to buy the New Jersey Devils three years ago and believed he had an agreement to buy the New York Islanders last year before owner Charles Wang instead reached a deal with Jonathan Ledecky. As part of his Coyotes purchase deal, Barroway agreed to drop his $10 million lawsuit against Wang, which alleged the Islanders owner reneged on a deal to sell him the team.
Various outlets reported that Barroway had missed a payment due to IceArizona’s other members recently, but sources told FOX Sports Arizona that payment actually wasn’t due until the end of this month.
Coyotes CEO, president and co-owner Anthony LeBlanc addressed the speculation of Barroway walking away from the team during a teleconference on Thursday.
"Andy put tens and tens of millions of dollars into the team, as well as taking on his share of the obligation for the outstanding debt," LeBlanc said. "I guess the way you could look at it is, well, he has outstanding debt. But Andy, he made a sizable investment that was real cash. I have no expectation that he would walk away, nor would any of our partners."