The promised revisions that the city of Glendale was demanding to the Phoenix Coyotes‘ new lease have been partly revealed, and … prospective team owner Greg Jamison will get less city subsidies in the first five years of the lease, and in exchange get higher payments in the last 15 years. Yeah, that’s it. If you had your money on “Glendale tells Jamison he can have $224 million in subsidies when Arizona freezes over,” you lose.
At least, probably you lose, as the official re-revised deal isn’t public yet. And Glendale councillor Phil Lieberman, when asked what he expects to be in the new lease, told the Globe and Mail: “I have no idea. The city is so screwed up nobody knows what’s going on.”
Jamison’s purchase of the Coyotes, meanwhile, is still being held up, not because of the lease talks, but because, according to the Globe and Mail, it depends on “Jamison and his partners raising additional money, somewhere between $20-million and $40-million, to cover the annual losses of the Coyotes.”
If you’re wondering how on earth everyone got themselves into a situation where an NHL team playing in an arena it got for free is depending eight-figure annual public subsidies and still projected to lose money, the Arizona Republic’s Lisa Halverstadt has the whole, sad story. Highlight:
The sports debt, coupled with a voter initiative on the November ballot to repeal a city sales-tax hike, has some worried the city could be pushed to the brink of bankruptcy. But city administrators and experts say that is less likely than painful budget cuts. Among those unveiled this week: shuttering libraries, laying off nearly a quarter of city staff and even eliminating a decades-old holiday festival that draws thousands from across the Valley.
Political upheaval has accompanied the budget strife. The mayor and two City Council members, who for years touted the sports and entertainment vision, are not seeking re-election. The city manager who was the architect of that plan retired in June.
“We were once called visionaries,” said Glendale Councilman Manny Martinez. “Now we’re being called other things which I won’t name.”