Andrew Barroway's buyout of his partners is the riskiest deal I can recall in recent memory. The deal that was announced yesterday in which Barroway bought out the partners that owned 49% of the Coyotes valued the team at $240 million, the precise valuation we placed on the hockey team this past November. The valuation consisted of $60 million of equity and $180 million of debt. IceArizona, who bought the Coyotes in 2013, made out well in the deal, taking out $90 million in cash from the sale to Barroway, roughly doubling its $45 million equity investment. During the 2016-17 season, the Coyotes posted negative operating income (earnings before interest, taxes, depreciation and amortization) of about $20 million.

Source: Forbes June 13, 2017 15:57 UTC