NHL exercises option to take $25 million from Glendale to cover Coyotes’ losses

GLENDALE, Ariz. – The NHL has exercised its option to take US$25 million from the city of Glendale to cover losses by the Phoenix Coyotes this season.

The city had placed the money in escrow a year ago at the NHL’s insistence to cover such losses if the sale of the team had not gone through by the end of this season.

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The city says the NHL took the funds on Monday.

The NHL bought the team out of bankruptcy in September 2009 with the intention of finding a buyer to keep the team in Arizona.

The proposed sale to Chicago businessman Matthew Hulsizer has been stalled by the threat of a lawsuit by the Goldwater Institute, a conservative watchdog group.