A Potential Franchise-Boosting Purchase of the NHL Phoenix Coyotes

NHL Phoenix Coyotes
Image: nhl.com

The chairman and CEO of Capstone Financial Group, Inc., Darin Pastor seeks out companies that are undervalued and offer significant investment opportunities. He emphasizes a hands-on “operations-centric” approach in ensuring that profitability goals are met. Among Darin Pastor’s noteworthy business endeavors was a bid to acquire the NHL Phoenix Coyotes.

Mr. Pastor brought together an investor group and engaged proactively with both the city of Glendale and the NHL in brokering a potential deal that would bring stability to a team still recovering from a 2009 bankruptcy.

That deal saw ownership of a struggling franchise partially owned by NHL legend Wayne Gretzky revert to the NHL. Over the next four years a number of potential suitors, including a San Jose Sharks executive, sought pathways toward acquisition of the team, but had financing arrangements fall through.

Mr. Pastor’s proposed acquisition drew on a family legacy as grandson of the owner of a Calder Cup-winning American Hockey League team. He described the Coyotes as being motivated and driven by the fan-supported talents of young players. However, despite the profit potential he outlined for the $170 million deal, the NHL decided not to accept it in 2013.

Darin Pastor’s 2013 Bid to Purchase the NHL Phoenix Coyotes

 

NHL Phoenix Coyotes
Image: nhl.com

As CEO of Capstone Affluent Strategies and Capstone Financial Group, Inc. Darin Pastor seeks out undervalued companies with sound operations and significant upside potential. In 2013, Darin Pastor announced the creation of an exploratory committee that included family members and longtime municipal financing professionals, with an aim of assessing the potential acquisition of the NHL Phoenix Coyotes.

Maintaining assets under management of nearly $1 billion, Mr. Pastor saw profit potential for the team, which had a $170 million price tag associated with its sale. Having suffered from poor management, the team had declared bankruptcy in 2009 and was taken over by the NHL at that time. Coach and part owner Wayne Gretzky quit during the bankruptcy proceedings, while owner Jerry Moyes filed a lawsuit.

Despite its history of financial instability, the Phoenix Coyotes were an excellent team that generated community support and fan excitement, and achieved the Western Conference championship in 2012. Mr. Pastor described the team as young and motivated, and the staff as committed to success. He also saw value in the team’s arena venue in Glendale, adjacent to the Arizona Cardinals stadium.

In his proposal, Mr. Pastor emphasized his intention to keep the team in the local area. while working to increase youth participation in hockey in partnership with area sponsors, schools, and non-profit organizations. However, this proposal was ultimately declined by the NHL in mid-2013.