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Sources in the investment banking and hockey communities were scratching their heads yesterday over reports of an offer to buy the Phoenix Coyotes and the surfacing of other "potential investors."

TSN reported on its website that someone made an offer to buy the financially crippled NHL team. The report did not identify the potential buyer and said the offer would only lead to "dialogue and further negotiations."

The report also said there were two other "serious parties" interested in the team, which is expected to lose as much as $45-million (all currency U.S.) this season. They, too, were not identified.

A few hours later, Coyotes majority owner Jerry Moyes, who has refused comment on recent stories about the severe financial problems of his hockey team, issued a statement saying there were parties interested in the franchise. Moyes said he and minority owner and head coach Wayne Gretzky have "had discussions with potential investors interested in joining us in continuing the team's presence in Glendale."

When sources familiar with the Coyotes' situation were asked about yesterday's reports, all said they had heard nothing about any serious interest in the team.

"Who would make an offer on that team?" one source said, referring to the total losses of the Coyotes, said to be as much as $250-million since Moyes took control of them in 2001.

An investment banking source said the only way the team could be sold and successfully remain at Jobing.com Arena in Glendale was if the new owner made an offer conditional on putting up as little as $50-million and the City of Glendale agreed to heavily subsidize the team by rewriting its arena lease. At the same time, Moyes would have to agree to give up the team without receiving much on his original investment.

"The involvement of the city is crucial," the source said.

Such a deal might even allow Gretzky, who was given a minority share of the team as part of his five-year contract as coach that is worth as much as $40-million, to buy the team if he could find financial backing.

"I have met with Glendale city management, who expressed strong support for the team, and whose assistance would contribute to helping the Coyotes operate on a positive cash flow basis," Moyes said in his statement.

But even though Glendale is willing to subsidize at least some of the losses, it may not be able to afford to pay enough for anyone to take a chance on investing in the team. Its population is only 250,000 and an annual subsidy of $9-million, which is what the city of Nashville may wind up contributing to the Predators, for example, would be onerous.