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The Phoenix Coyotes' losses this season are expected to hit $45-million (all currency U.S.) once their debt servicing is taken into account, according to two sources, and the club is making further cutbacks after layoffs last week.

Among the austerity measures pushed on the club by the NHL, which is monitoring the Coyotes' financial and player-personnel moves, is a reduction in travel by the club's scouts, according to sources. Last week, the Coyotes laid off 18 people in the front office, about 10 per cent of their staff.

Sources have said the Coyotes owe about $80-million to SOF Investments LP, an equity fund owned by computer tycoon Michael Dell and his family. The club has pledged almost all of its assets and revenue to the company as collateral.

A report from ESPN.com said the Coyotes also failed to hit at least some of the mandatory targets last season for a full portion of the league's revenue sharing. The Coyotes had their expected share cut to $10.5-million from $15-million, one ESPN.com source said.

The league's sharing agreement distributes money from the top 10 clubs in revenue to the bottom 10 among the NHL's 30 clubs. The lowest-ranked club, the Coyotes last season, receives the most money, but to qualify for a full share, clubs have to hit certain targets, such as showing a specified improvement in their revenue and attendance over the previous season.

Last season, the Coyotes finished last in the NHL in ticket revenue with a total of $18.4-million, according to figures obtained by The Globe and Mail. That was a decrease from $22.55-million in 2006-07.

Club officials claim ticket sales are up this season by 99,000 overall from the same period last season. But the Coyotes are receiving advances from the NHL on their share of expected revenue from league-wide broadcasting, merchandising and other sources.

NHL deputy commissioner Bill Daly declined to comment yesterday on the Coyotes' total losses and whether the club was denied some of its revenue-shared allotment. He also declined to say whether the travel cuts were demanded by the league or whether Coyotes managing partner and head coach Wayne Gretzky agreed to defer some of his salary.

"I am not sure the league is in a position to answer or confirm any of these questions," Daly wrote in an e-mail message. "These would appear to be better directed to the club."

Jeff Shumway, the Coyotes' chief executive officer and governor, was asked the same questions by e-mail and declined to comment. "I have no comment at all," he said when reached by telephone.

The Coyotes are trying to renegotiate their lease at Jobing.com Arena in Glendale in an effort to get more money from the building or the city, although they already receive most of the revenue from the complex. Sources say city officials have so far refused to change the 30-year agreement, which calls for huge financial penalties if the team tries to relocate.