What's Next for the Coyotes?

Via: http://www.sportsnet.ca/hockey/2012/05/23/glendale_council_inches_toward_coyotes_lease/

"GLENDALE, Ariz. -- The Glendale City Council has approved a preliminary budget that includes $17 million to be paid to the prospective buyer of the NHL's Phoenix Coyotes for operating costs for the city's Jobing.com Arena.

The 4-3 vote on Tuesday night was the first in a series of moves necessary before the council approves a new lease for the arena.

The council has two more preliminary budget hearings before taking a final budget vote. No date has been set for the council to consider the new lease, but it is expected to do so in the next few weeks.

The NHL has reached a tentative deal to sell the team to Greg Jamison, former CEO of the San Jose Sharks, contingent on a new lease agreement with Glendale."

Moving forward...

Moving forward? Hardly. Lateral move at best. Still staying in Phoenix.

No way to they let the tax payers hold the bag for a team that's going to lose millions, and million, and millions.

Quebec City will have their team in very short order.

Riprock wrote:Moving forward? Hardly. Lateral move at best. Still staying in Phoenix.

Heh. I meant moving forward as far as the Coyotes staying on Phoenix. I'm surprised they're fine with paying $17M per year.

Yeah, wasn't making it out to make it seem like you mean't that, sorry for the confusion. I get that you meant the process of selling was moving forward, but it's still not going to make a difference, which seems like we all know.

Still can't believe how much leash the Coyotes have had and yet Atlanta up and out of the blue was gone.

How are Florida and Phoenix any better? I thought Florida was giving away tickets, and they are spending a lot of money too.

The issue in Glendale is that they spent so much on that arena they need to have someone in it. If the Coyotes bolt, it will sit empty and they'll be in the hole even more.

The hope is that revenue from the arena essentially offsets the management cost. No tenant will mean there is still a management cost.

dennycrane wrote:The hope is that revenue from the arena essentially offsets the management cost. No tenant will mean there is still a management cost.

I got this from the Goldwater website. It's from a Wall Street Journal article.

Yet unlike other Arizonans, Glendale taxpayers can't ignore the Coyotes. The city is obligated to make debt payments on the arena that average $12.6 million a year. To keep the team afloat, moreover, the city has been paying a so-called "arena management fee" of nearly $25 million a year to the NHL, which three years ago bought the Coyotes out of bankruptcy.

The NHL has announced a tentative sale to a group headed by former San Jose Sharks executive Greg Jamison, under terms that would essentially institutionalize Glendale's commitments. Under the proposal that the NHL has laid out for city council members, the city would continue paying an arena-management fee that would average about $14.5 million a year.

On top of the city's average $12.6 million in debt service, that amounts to annual expenses of about $27.1 million—to be offset by anticipated Coyotes-related revenue of $14.2 million, according to projections by Glendale's city management department. That adds up to a projected annual loss for Glendale of $12.9 million.

Looks like that bull$hit "management fee" is already being paid to the NHL!!!

Check this out:

These expenses outweigh Glendale's Coyotes-related revenue by such a degree that Moody's has downgraded the city's bond rating twice in the last 18 months, citing the city's ongoing hockey payments.



So their bond rating gets cut meanwhile Jamison can use his "management" contract to secure low-interest loans based on the future receivables of that contract. Glendale is being taken to the cleaners. End of story.

The $25M/year is to the NHL right now to cover the losses while the NHL looks for a new owner... if the sale goes through then I think they stop paying that and start paying whatever management fee they have with the new owners. Hopefully my understanding is correct...

The city itself is facing a $35M deficit problem.

They're in a no-win situation whether the Coyotes stay or go. But if they leave it does seem to be worse unless they have some other team to call the arena home.

shabbs wrote:The $25M/year is to the NHL right now to cover the losses while the NHL looks for a new owner... if the sale goes through then I think they stop paying that and start paying whatever management fee they have with the new owners. Hopefully my understanding is correct...

The city itself is facing a $35M deficit problem.

They're in a no-win situation whether the Coyotes stay or go. But if they leave it does seem to be worse unless they have some other team to call the arena home.

You're right. All I'm saying is the management fee is a scam and the Glendale taxpayers are holding the bag. And I guess I'm sort of pissed that I'm not getting a free hockey team and free collateral to secure large loans.

It's all smoke and mirrors... any new owner knows the City is in trouble and has no real leverage and will have to pay the management fee. The Goldwater institute can shut it down again if they want and then the NHL will say Diddle you and move the team to Quebec City.

http://www.sportsnet.ca/hockey/2012/05/24/glendale_councillor_clark_calls_canada_cities_poachers_coyotes/

Apparently Canadians are "poachers" according to a Glendale councilor

I love all the comments reminding her about how Phoenix managed to get their team in the first place.

Revisionist history there... holy crap...

I guess KC and the other US cities that want NHL teams are not poachers though... only the Canadian ones... right Joyce? Right?

Dumbass.

Found some more details on the payments Glendale plan on making to the new owners...

http://tucsoncitizen.com/arizona-news/2012/05/23/glendale-city-council-approves-579-million-tentative-budget/

"City administration has said Jamison agreed to the $17 million from the city for next year.

After that, the city would expect to pay Jamison $20 million annually until 2017, when the bill would drop to $15 million, city budget proposals show."

Will the fans come out during the regular season next year? They came out for the playoffs... but that seems to be the only time they come out...

And Goldwater wades into the latest mess...

http://www.winnipegfreepress.com/breakingnews/goldwater-institute-to-seek-restraining-order-to-halt-glendale-vote-on-coyotes-157984355.html

Also of note, the Jamison group apparently has not been able to raise enough cash to buy the 'Yotes.

Donkey Rodeo!!!!

So who do the Nordiques open against?

I wonder if Winnipeg will be pissed that they wound up with the Thrashers instead of the Coyotes. Meh...guess they are just happy to have a team.

I'm so sick of the Coyotes BS.