Announcement of Barroway-Coyotes deal likely to come Wednesday
Once the deal is announced, the Coyotes will likely hold a press conference within the week to introduce Barroway to local media. Barroway has remained out of the spotlight since word of the deal first broke in early October in an attempt to respect the process.
Current Coyotes governor George Gosbee said previously that when Barroway takes over, he and the current members of IceArizona will combine to infuse $30 million directly back into the team, with as much as $9 million going directly to payroll. If true, that could make the Coyotes more significant players during free agency this offseason, although this summer's free-agent class is not considered strong. Barroway's arrival could also give GM Don Maloney more immediate guidance as he looks to retool the roster after a disappointing start to the season.
It's no secret that Arizona is short on top-end, skilled forwards. Coach Dave Tippett and Maloney have also expressed interest in adding a more physical defenseman or two to the mix.
With the Coyotes already 11 points out of the Western Conference playoffs and ahead of only Edmonton in the conference standings, Maloney has made it clear he is actively seeking to reshape the roster via trades. Those could come closer to the March 2 trade deadline when return value may be higher, but it's likely some moves will come more quickly.
The team's unrestricted free agents may be the most likely targets to be moved, along with defenseman Keith Yandle, who would have to bring at least a top-end forward in return for Maloney to make a deal. The team has seven players on the current roster who will be unrestricted free agents at the end of the season: Forwards Antoine Vermette, Martin Erat, David Moss and B.J. Crombeen, defensemen Zbynek Michaek and David Schlemko and goalie Devan Dubnyk.
Moss went without any offers this summer when he was a free agent before the Coyotes brought him back on a one-year $800,000 deal. Schlemko was waived earlier this season with no teams putting in a claim.
The Coyotes currently sit 28th in cap payroll at about $54.4 million according to capgeek.com, but that figure does not account for the fact that they are paying only half of Erat's $4.5 million salary. Washington is paying the other half as part of the deal that sent Erat to Arizona at the trade deadline last season.
It is unclear how the structure of the ownership group or the hockey operations department will look once Barroway arrives. He is expected to become the governor with CEO Anthony LeBlanc remaining in place, but there could be changes elsewhere.
Coyotes (14-18-4) at Stars (16-14-5)
When: Wednesday, 6 p.m.
Where: American Airlines Center, Dallas
Injuries: Dallas: Patrick Eaves (ankle), Patrik Nemeth (arm) and Valeri Nichushkin (hip) are on injured reserve. Arizona: C Joe Vitale (lower body) is day to day and could play. D Chris Summers (upper body) is on injured reserve and unlikely to play.
Quick facts: Dallas snapped the Rangers' eight-game winning streak on Monday and is in the midst of a 6-0-1 run, its best stretch of the season. ... Coyotes goalie Devan Dubnyk has stopped 91 of 95 shots during the team's three-game winning streak. ... Stars C Tyler Seguin leads the NHL with 25 goals and is second in points at 43.
NHL deputy commissioner Bill Daly said previously that Barroway's arrival should be viewed as a financial restructuring and an infusion of capital, not a sale in the traditional sense.
Gosbee said IceArizona has had several conversations with Barroway about its desire to keep the team in the Valley. Although there is no known formal language in the deal that guarantees the team stays, both Daly and commissioner Gary Bettman said fans should not be concerned about the team leaving. That is not the purpose of this deal.
Barroway is buying 51 percent based on a $305 million equity valuation of the team. The infusion of capital was expected to allow IceArizona to wipe out its loan from Fortress Investment Group (believed to be $85 million), but it is unclear whether anything has changed in the financial structure of the deal.
Barroway's arrival will not eliminate the current out-clause that allows the Coyotes to leave the Valley if their losses reach or exceed $50 million in five years. IceArizona would also still owe part of the $85 million it received in a loan from the NHL.
Barroway tried to buy the New Jersey Devils two years ago and believed he had an agreement to buy the New York Islanders earlier this year before owner Charles Wang instead reached a deal with Jonathan Ledecky.
As part of this 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.
IceArizona bought the Coyotes for $170 million last summer, but faced with this financial opportunity, Gosbee said the partnership was willing to cede financial control, although it decided it did not want to sell its entire stake in the team.
With the deal imminent, Barroway, a Philadelphia native, attended the Coyotes' morning skate on Monday and the game against the Philadelphia Flyers that night with his son.
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