Two U.S. businessmen are leading the group that's been awarded a National Basketball League of Canada team in St. John's, according to the Canadian entrepreneur who made them aware of the opportunity.

"Irwin Simon was advised on Friday that he had been awarded a franchise and is now looking at running a franchise in Newfoundland," said John Graham of On Ice Productions.

There's a huge emotional connection. - John Graham

Simon, who was born in Cape Breton, operates Hain Celestial, an international health food company based in New York. He has been looking for a chance to invest in Atlantic Canada for some time, Graham said.

"There's a huge emotional connection for Irwin," he said, speaking by phone from Regina.

John Graham (left), the president of One Ice Management, and Scott Ferguson, the president and CEO of Trade Centre Ltd. (Pam Berman/CBC) "We've talked about different projects across the country and Irwin's mandate was that he wants to have something in the Atlantic provinces."

Robert Sabbagh, the owner of a Brooklyn-based car dealership is a minority partner in the group.

Graham has a long history of organizing sports events in St. John's. He was involved in bringing NBA basketball teams and The Harlem Globetrotters for games in St. John's. He also helped bring an American Hockey League team to the city.

"Basketball is a sport that's exploding in Canada and it just seems that St. John's is the right place at the right time for it," he said.

May expand into hockey, soccer

Graham said Simon may be interested in bringing a hockey team, or other sports, to St. John's in the future.

"I don't think there is any dispute that it would make sense to do that. The focus is on the basketball at the moment and that's what we want to do," he said.

"I've been involved in three Quebec Major Junior franchises in the Maritimes and a couple of AHL franchises. We've also talked about soccer because there is a new Canadian premier soccer league."

Leasing Mile One Centre

The group has not negotiated an arrangement to lease Mile One Centre yet but Graham said they won't negotiate a deal through the media.

"I talked to the people at the venue and they were very professional but they made us aware that they were negotiating with others and we presented a concept and we'll leave it at that and see where it goes" said Graham.

The city wants to avoid big subsidies for a basketball team, but the new franchise owners have yet to talk terms of an arrangement with Mile One Centre. (CBC)

On Monday, St.John's city councillor and representative on the board that runs Mile One, Sandy Hickman, said the city had reached a deal to lease the arena to another group led by Newfoundland businessman Tony Kenny.

​"The National Basketball League of Canada seems to have a deal with a different proponent than we have a deal with. Which is disappointing, and kind of mysterious really,"Hickman said.

The NBL Canada declined an interview with CBC News on Monday, saying it would have more information about the owner later in the week.

In conversations with the league throughout the summer, Hickman said the city was told there was a deadline of June 15 to approve an expansion team, with a preference for local ownership.

The league has now set a new deadline, he said, for the end of July.

"We find [the league is] not giving us the full information ... and certainly, the group they have a deal with has not come to us and sat down, face to face."

Hickman said the agreement with Kenny involved little or no subsidy and any other group renting Mile One would be expected "to pay their own way."