Sunday, March 29, 2009

City takes on stake in Utah Grizzlies to keep them going

Two ECHL teams have folded this season, but that's just the tip of the iceberg in terms of teams in trouble. The Utah Grizzlies turned money owed for rent into a new owner -- West Valley City. They'll be one of the lucky ones when it's all said and done.

From The Salt Lake Tribune:

The minor league hockey team now has a partner and the city now owns part of a professional sports franchise. It's not an ideal situation for either party, but the fact is they need each other.

The Grizzlies need a partner to shore up mounting financial losses. The city needs its biggest E Center tenant to keep filling dates and bringing in the crowds.

West Valley City laid out $600,000 to buy a stake in the team, a figure that essentially wiped out what the Grizzlies owed the E Center in rent.


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