A big Red Menace has descended upon the NHL with a list of names, and we're not talking about Santa Claus, but rather the surprising Phoenix Coyotes who are kicking desert sand in opposing visors. Regrettably, not even their positive start to the hockey season hasn't been able to stem the tide of red ink on the bottom line.

With a quarter of the NHL season already elapsed the Desert Dogs are holding down a playoff spot with a 12-9-0 record, however, on the ledger most hockey people care about as it pertains to the club, they lost $5-million (all figures U.S.) in the month of October according to documents filed in the Coyotes Bankruptcy case.

The numbers for the fiscal year are equally bad, as the Coyotes hockey club has lost $15.9-million, but the NHL isn't rattled by the losses, nor their impact on the league's ability to sell the franchise.

"I don't expect that publicly reported loss numbers will have any impact whatsoever on our ability to sell the club," [Bill] Daly said in an e-mail yesterday. The "losses in the short term don't seem to be factoring into the interest of potential buyers. They have much bigger, longer-term vision of the investment." Daly added the league has fielded a number of inquiries about the club. "Lots of calls and discussions [i.e., more than six]. Not sure I would classify them all as interested bidders."

When the NHL took control of the Coyotes from majority owner, Jerry Moyes, the league's public position has been to find a local owner or an owner who is committed to keeping the franchise in Phoenix. One of the big efforts required by the NHL to sell these interested white knights would be to fill the Jobing.com arena and slowly rebuild the Coyotes brand to make them relevant in a market with a leery fan base.

After selling out the home opener on Oct. 10, with prices for some good seats as low as $25, attendance for the next games has been as low as 5,855. According to figures complied by ESPN, the Coyotes are averaging 9,736 a game, by far the lowest in the NHL. The club announced another seat sale yesterday for several games with ticket prices for good seats once again going for $25.

While on the surface this sounds all fine and good, many observers are left to surmise how keen prospective owners - of which there are apparently more than half-a-dozen nameless and faceless individuals - will be keen to fund a losing proposition anchored in the Valley of the Sun. How long the NHL can keep this "shell game" going will probably depend in part to the economy and signs of recovery. I suppose we'll find out if Santa Claus has a gift in his sack of this magnitude.

Given all that has transpired and what we know about the Phoenix Coyotes circumstances, should the NHL find someone to purchase the hockey club, can the team remain in Phoenix or Glendale for the long-term?

Yes, with prudent ownership and fiscal management hockey can succeed in Arizona.

No, the purchaser will buy the team with the sole intention of moving the team to another market either in the United States or Canada.

What say you Fadoo?

Red ink flowing at record rate in Phoenix [The Globe & Mail]