Kaites and Beasley, in particular, have long been rumored to have an association that's more than just business. They serve on the board of at least one non-profit agency together and are said to be friends, something a city spokesman didn't deny when I asked him directly. (Kaites didn't return several messages seeking comment.)
"Ed Beasley and John Kaites have a good professional relationship," said Gary Husk, the city's longtime consultant and spokesman for the Coyotes deal; all requests for comment from the city were referred to him. "I can assume over the years as they've worked together, they've become friends."
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This hockey fight is now in a courtroom.
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Beasley's calendar shows repeated meetings with both Kaites and Reinsdorf over the past year. Kaites and Beasley had no fewer than four scheduled meetings or conference calls in August and September 2008, which is right around the time the Coyotes' ownership began asking City Hall for help.
An e-mail that New Times obtained through a public-records request suggests, at minimum, a lack of formality in their dealings. In May, as the Coyotes' current ownership filed for bankruptcy, some fans planned a "Save the Coyotes" rally.
It was Kaites who forwarded the information to Beasley. His note: "See below. They are working on this for Thursday. You need to be involved to make sure there is maximum impact."
For the record, Beasley e-mailed other staff to say that the city would not be involved. He told them he'd follow up with Kaites directly.
By now, of course, Kaites isn't just an audacious young pol asking a power player out to dinner, shocked by his own hubris. He's become a player himself.
In fact, when Kaites registered a limited liability company called Glendale Hockey LLC in June 2009, the company had two members: Kaites and Reinsdorf.
The ownership was split 50/50.
In bankruptcy court, attorneys for the team's current ownership have made repeated attempts to question Kaites. So far, they've been rebuffed: The judge has ruled that the lobbyist isn't the issue, at least not now.
But Tom Salerno, an attorney with Squire Sanders & Dempsey, which represents the team, said any connections between the city and Kaites/Reinsdorf bear examination.
"The ultimate issue is, can they be impartial?" Salerno asks. The possibility that the city's consultant met with Reinsdorf and Kaites in December, Salerno agrees, "does create some issues."
Salerno's clients also hope to explore whether there was collusion between the NHL and the Reinsdorf team, he says. "The judge has allowed us to take depositions in respect to that, and we'll be asking a lot of questions," he told New Times.
It's terrible, timing-wise, to try to explain all this. The situation is literally changing day by day. Blame Glendale for the lateness of my reporting this news: It took the city well over a month to process my records request.
For now, though, the team's ownership — which will determine whether the Coyotes stay in Glendale or leave for Canada — is in question. Last week, the NHL put its blessing on the Kaites/Reinsdorf bid. On September 10, the bankruptcy judge should decide which bid he likes. The emphasis is on "should": Everything is up in the air at this point, including Reinsdorf's participation. (Stung by leaks about the incentive package he's requesting, Reinsdorf is now threatening to pull out.)
The battle could get ugly.
For one thing, Moyes has shown that he won't go down without a fight.
For another, the Goldwater Institute, which successfully struck down Phoenix's incentives for the CityNorth shopping center, has vowed to fight any similar package that Glendale offers to keep the Coyotes in the Valley. The Goldwater Institute is now attempting to intervene in the bankruptcy, warning the judge that any deal may well require the Arizona Supreme Court's review.
Trust me: No matter what happens next, it's going to be a long, tough slog.
At some point, though, Ed Beasley will no longer be able to hide between "ongoing negotiations" and "active litigation." Then, he's going to have to explain just how long he's been talking to Reinsdorf and Kaites about this deal.
He's going to have to explain how he decided to hire Beacon Sports Capital Management — and how they ended up meeting with his favored bidder long before anyone else knew there was a chance to bid.
He's going to have to answer questions about his relationship with John Kaites.
Glendale may not have a hockey team in six months. That's up to the bankruptcy judge, the Glendale City Council, and ultimately, maybe even the state Supreme Court.
But as the smoke clears, we'd better be getting some answers about what exactly transpired with this deal. That part is up to us, and I hope we're pushy.
