GLENDALE, Ariz., May 3 (UPI) -- The city of Glendale, Ariz., has paid $25 million demanded by the NHL to cover its losses with the Phoenix Coyotes, Canadian broadcaster TSN reported Tuesday.
Citing unnamed sources, the network said the city turned over the cash, which was due Tuesday, as part of its agreement with the league while a new owner is sought for the financially struggling franchise.
The NHL, which has temporary ownership of the club, presented the bill for this year's losses after the Coyotes were eliminated from playoff contention last month.
Glendale had reserved $25 million from a utilities-repair account to help cover the team's losses. The Coyotes' actual losses for the past season were $36.6 million, The Arizona Republic reported.
City officials had promised residents the money would not have to be paid if a buyer was found. But negotiations on a sale between prospective owner Matthew Hulsizer, the NHL and the city are dragging on.
A deal to issue city-backed bonds to finance the sale is opposed by the conservative Goldwater Institute, while another prospective owner, True North Sports and Entertainment Ltd., is waiting in the wings to move the team back to Winnipeg, Canada, the franchise's original home.
