For now, Glendale appears off the hook for the $25 million it pledged last May as an insurance policy to keep the Phoenix Coyotes in the city at Jobing.com Arena.

The city announced Friday that a potential buyer has agreed to fund the $25 million that the National Hockey League demanded from Glendale in order to cover the team's operating losses this season.

"As the city and the prospective buyer work toward finalizing documents, in a show of good faith, the prospective buyer has deposited $25 million dollars into escrow," Glendale's statement read.

Glendale officials would not name the potential buyer, but the city has been negotiating for weeks with Matthew Hulsizer, a Chicago investor.

"This shows the city has met the NHL deadline for finding a qualified buyer, who will keep the team here, a requirement to release the City's $25 million currently in escrow," the statement said. "Glendale and the NHL will continue to move forward to work with the prospective buyer to facilitate a purchase of the team that will keep the Coyotes in Glendale for the long term."

If the deal isn't completed, Glendale would have to resort to its own $25 million again.

In May, the NHL pressed Glendale to put up $25 million for team and arena losses in the 2010-11 season. That bought Glendale leaders more time to negotiate a lease with potential team buyers.

The city money came from a fund for long-term improvements to infrastructure such as water and sewer systems.

Glendale officials would not comment beyond the released statement.

A spokesman for Hulsizer, co-owner of Chicago trading firm PEAK6 Investments, also wasn't talking.

But he said Hulsizer enjoyed watching the Coyotes rookie game Tuesday. He and a team of advisors visited the Valley this week.

Hulsizer, a former collegiate hockey player, is the fourth major investor in two years that has tried to buy the financially troubled Coyotes. Attempts by Canadian billionaire Jim Balsillie, Chicago sports mogul Jerry Reinsdorf and the businessmen of Ice Edge Holdings failed.

However, Ice Edge could become a minority owner with Hulsizer.

Wednesday was the first day the NHL could start billing Glendale for team losses up to $25 million through Dec. 31. After the Dec. 31 deadline, if Glendale had not secured a buyer for the team, the NHL said it would seek to relocate the Coyotes. The league reportedly has an agreement with Winnipeg investors to move the team if Glendale negotiations are unsuccessful. The Coyotes moved to the Valley from Winnipeg in 1996.

Glendale must come to a preliminary lease deal with Hulsizer so the team could play at Jobing.com Arena. Then the council must vote on it.

After that, Hulsizer and city officials would go back to create a final, more detailed lease document. The NHL also would have to negotiate a purchase price with Hulsizer, believed to be about $160 to $170 million, and approve him as an owner.

Glendale's statement said it "is moving forward with a prospective buyer for the purchase of the Phoenix Coyotes, subject to negotiation and approval of the prospective buyer and purchase price by the NHL."

Deals with past potential buyers outlined fees the team would pay the city, a taxing district in the sports and entertainment zone that would raise revenues for the team and charges for parking during games and concerts.

Glendale owns the arena and pays off the $180 million it spent to build it in 2003 through Coyotes payments and sales and property taxes.

The NHL purchased the Coyotes for $140 million out of bankruptcy court last summer, after former owner Jerry Moyes said he was done losing as much as $30 million per season on the team.