AIG, a private insurer with offices in Miami and Atlanta, is about to embark on a $25 billion expansion bid in the NHL’s National Hockey League.
It would become the third-largest U.S. insurance company.
“We are confident we have the right fit for the expansion market,” said John Ehrlich, AIG’s chief executive officer, in a conference call.
AIG is a private company with offices at Miami and Miami Beach, Fla.
It also has two regional offices in Atlanta and Tampa, Fla., and operates on a mix of corporate and government networks.
The deal is expected to close by the end of the year.
AIG has a contract to buy about 80 percent of the expansion team in Detroit, which has an estimated $100 million in debt, according to the Wall Street Journal.
The other 80 percent will be sold to a consortium led by the Chicago Blackhawks and Los Angeles Kings.
The expansion team will be named the Los Angeles Stars, after the NHL team in L.A. that became the first NHL franchise to use a nickname.
The team’s logo will be changed from “Stars” to “The L.I.A.”
The announcement comes just days after the NFL announced it is moving forward with its own expansion plan.
The league’s announcement on Thursday that it would spend $1 billion to relocate the New York Giants from the Los Angels stadium was a first step toward a deal with AIG.
The Chicago Blackhawks, which are the current team in the NFL, are also expected to be in the expansion mix, although no timetable has been given for their arrival.
The Blackhawks announced earlier this week that they had received approval to relocate to the newly announced expansion franchise in Minnesota, and that a formal announcement could be made as soon as this weekend.
A number of teams are in talks to move to Minnesota, including the Edmonton Oilers and New York Rangers.AIG has already signed an agreement to buy the franchise in Tampa.
The Chicago franchise, which is owned by the state of Illinois, is in talks with the NHL.
An AIG spokesman did not immediately respond to a request for comment.
In January, the National Hockey Association (NHL) announced that it is expected the league will start looking for a team to build a new stadium in 2021.
The NHL said the NHL has already invested $1.5 billion in the development of a new arena and that it expects to spend $9.5 million on the stadium project.