The Great One is finally getting paid for his time in the Valley of the Sun.
Courtesy of the Los Angeles Time on December 4, 2013:
The NHL has agreed to pay Wayne Gretzky the money he was owed from his tenure as a part-owner of the Phoenix Coyotes, a sum reported to be between $7 million and $8 million….A spokesman for Gretzky confirmed Tuesday that a deal had been reached between the league and Gretzky, who lost money after Coyotes owner Jerry Moyes put the team into bankruptcy in 2009.
The NHL had sued Moyes in an effort to recover money it claims it was owed by Moyes, including a sum on behalf of Gretzky. A federal bankruptcy court dismissed most of the league’s claims in that suit. The Coyotes were operated by the NHL until last summer, when they were purchased by a group of Canadian businessmen.
In May 2000 Gretzky agreed to buy a 10% stake in the Phoenix Coyotes, who were in the process of being sold. The sale was completed in February 2001 and Jerry Moyes was the majority owner of the hockey franchise. Gretzky coached the Coyotes from 2005 to 2009 and was also head of hockey operations. Since leaving the Coyotes Gretzky has not been associated with an NHL team in any capacity.
In a way Gretzky lost some potential earning by not getting his share earlier. Based on the Bureau of Labor Statistics CPI Inflation Calculator, $8 million in 2009 is now worth $8.7 million.
Now if in 2009 Gretzky put that $8 million dollars in a basic savings account, with a 1.0% interest rate compounded monthly and added $1.00 per month, by 2013 he would have had $8,665,769.38.
Based on my calculations the Great One lost money in this deal. But then again he is $8 million richer today.