5/10/2005 9:59:10 AM

Wayne Gretzky is set to officially take over the coaching reigns of the Phoenix Coyotes, according to published reports.

The East Valley Tribune of Arizona quotes well placed NHL sources who say Gretzky and the Coyotes have all but agreed in principle to a new, three year deal with a formal announcement expected by weeks end.

A Coyotes spokesperson tells TSN that no deal or announcement is imminent but that discussions are ongoing and a deal is likely in the coming months.

Speculation has surrounded Gretzky's future in Phoenix since the team failed to officially hire a new head coach following last season. However, the collective bargaining lockout meant there was no need to name a head coach so long as there was no hockey being played.

In April, Gretzky - a part owner of the team since 2001 - said he would be reluctant to step behind the bench if the NHL agreed to use replacement players if no new collective agreement could be worked out with the union.

The newspaper says Rick Bowness, who was the interim coach at the end of last season, will return as an assistant with Gretzky and that Rich Tocchet will likely be hired as a second assistant once a new labour agreement is finalized.

"There is little information coming out right now regarding exactly how much of this situation has been resolved. But what is not happening says more than what is is right now. Neither side right now, even when working off a linkage deal with little time to waste, is pushing for round the clock meetings. The stakes are unbelievably high that this get resolved by June 15th. There are those who fear the PA is stalling, but the NHL is not internally acting frustrated....like they have in the past when they calimed the PA was stalling. It appears very much like both sides are over the huge differences, and although the PA may not be thrilled with the deal, they are trying to just make sure the revenues get counted in way that guarantees the most possible revenues"

In HOCKEY news...(hooray)
The Draft.
Rumor has it that a hotel has been booked in New York for the weekend of June 26th to hold the draft in New York City. Word is that the expected first-rounders will be flown in and of course Mr. Crosby will be in the big apple. Talking to many journalists in the states, the feeling is that the NHL almost should rig the draft to make Crosby a Ranger... "If they don't do it they are more stupid than we all thought, "said a respected hockey writer, "The kid is perfect for New York, and the NHL needs him there. We need a Jordan in hockey in a major hockey city." I have talked to half a dozen who feel the same exact way. I'm sure all you in Canada will have an opinion on this. I'm staying out of it.

ESPN dumps NHL

League revenues take another hit. How will this affect the CBA negotiations?

Sportsnet.ca -- ESPN has declined its option to retain National Hockey League broadcasting rights next season for $60-million US, Sportsnet has learned.

While some consider this a huge blow to the league and its exposure south of the border, there is a sense ESPN 2 may attempt to use this opportunity to negotiate a much cheaper rights fee.

Regardless, this decision will clearly have an impact on NHL revenues and may factor in to the current CBA negotiations as the pie continues to shrink.

Meanwhile, Bain Financial remains intent on buying the NHL. A memo was circulated around the league Friday announcing the group has tabled an offer of $4.3-billion for all 30 NHL teams. The offer would split the teams into three categories based on the estimated worth of each franchise.