The Thrashers are headed to Winnipeg.
True North Sports and Entertainment, the Canadian group that has been negotiating to buy the team since mid-May, made formal announcement of the move at news conference in Winnipeg at 12:20 p.m.
Lawyers worked through the night on the transaction, with the last piece put in place at mid-morning Tuesday. Commisioner Gary Bettman told reporters he took a conference call with the principals at 4:30 a.m. (EDT) Tuesday.
Bettman also said he regretted seeing Atlanta losing its second NHL franchise.
"Sometimes, we simply don't have a choice," he said.
The agreement is conditional on approval by the NHL Board of Governors. The board, which consists of one representative from each team, is scheduled to meet next on June 21 in New York. A 75-percent vote is required to ratify a change of ownership and a 50-percent vote is required to approve a franchise relocation.
The Thrashers owners, Atlanta Spirit, negotiated the sale of the Thrashers to True North since mid-May. The Thrashers' owners have said in court documents that the team has lost $130 million since 2005.
True North is led by Winnipeg businessman Mark Chipman and billionaire David Thomson and owns Winnipeg’s arena, the MTS Centre and the American Hockey League team that has played there, the Manitoba Moose.
The group turned its attention to the Thrashers after a deal involving taxpayer money was reached to keep the Phoenix Coyotes in Arizona several weeks ago. The city of Glendale, Ariz., committed $25 million for next season to cover operating expenses for the NHL-owned franchise.
The Thrashers began play as an expansion team in 1999 in then-new Philips Arena.
This is the second time the city of Atlanta has lost an NHL franchise. In 1980, the Flames left for Calgary. No other U.S. city has lost a professional sports franchise to Canada, and now it’s happened to Atlanta twice -- in the same league.
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