Glendale council votes 5-2 to tell Coyotes to take their lease and shove it

And it’s on:

Clearly the NHL is going to have to write a new press release. Way more to come in the morning.


16 comments on “Glendale council votes 5-2 to tell Coyotes to take their lease and shove it

  1. This is likely how things will play out….

    1. Glendale votes to void arena management agreement and lease agreement – Check
    2. Anthony LeBlanc goes ballistic in front the cameras – finger waging and tell everyone the city is wrong. – Check
    3. IceArizona files injunction to freeze everything
    4. NHL BoG meet to discuss its options and what to do moving forward
    5. Bettman stands in front of the media and proceeds to tell everyone it was Glendale’s fault for moving the team to City X
    6. Team leaves for City X and legal battle between IA, NHL and Glendale proceeds for next several years.

    Ultimately, even if Glendale was to lose any court proceeding is the cost of the legal battle less than $225M?

  2. You skipped a couple of steps there. Does IceArizona necessarily have a better offer from another city than whatever a renegotiated Glendale lease would look like? Seattle doesn’t have an arena, Vegas has all the problems Vegas usually has. Quebec is probably the best relocation option, but it’s hardly something to get all excited about, especially since they’d need to work out a lease with Quebecor.

    I foresee a long stage of litigation at the same time as all these cities are jockeying for position to win LeBlanc’s heart with their pocketbooks. In other words, pretty much status quo for the Coyotes.

  3. And I do think you can make a good case that Glendale is better off without the Coyotes if it means being stuck with this lease. The Coyotes disagree, clearly, but also clearly, they have 225 million reasons to.

  4. This will produce a nice self-inflicted black-eye on the NHL. A league trying to force-feed it’s product on an unwilling host while trying to drain that host of as much money it can at the expense of it’s citizens. After this, there should be no city with any senses dealing with the NHL ever again.

  5. On the flip side of things, maybe it will have people rethink the whole hiring people who worked for the company you’re negotiating a deal with while in the process of negotiating that deal.

  6. Seems pretty clear that the city of Glendale can terminate the contract they have with Ice Arizona.

    I don’t see how Ice Arizona would agree to a lesser deal from the city. At this point CoG can ask for a great AMF and more. They have the upper hand for the first time in years and have come to their senses. The party is over in Glendale.

    The risk of not having a place to play for 2015-16 should IA and CoG don’t come to an agreement is very big. Not sure the NHL will allow this.

    Will the NHL take the tab of a lame duck year in Glendale? Losing probably upwards of $50mil? I don’t think so but weirder things have happened in Glendale.

  7. I live in Quebec City and no one ever discusses the possibility of an outside entity moving a team here and renting from Quebecor. It is taken for granted (correctly or not) that Quebecor will purchase an existing or expansion franchise.

    Yes, this could be too expensive for Quebecor, but push comes to shove they’ll get another government subsidy to finance the deal.

  8. And just to throw more gas on the fire, there was an article from today where Phoenix city councilman Michael Nowakowski mentioned building a new arena in downtown Phoenix to act as a new home for both the Coyotes and Suns.

    http://www.bizjournals.com/phoenix/blog/business/2015/06/could-the-arizona-coyotes-move-back-to-downtown.html

    And in terms of relocation talk, while I would say QC makes the most sense on several levels, I wouldn’t overlook Portland either. The Moda Center can seat just over 18,000 for hockey (and was actually designed with it in mind), and I personally believe that city would support an NHL team pretty well.

  9. “… an article from today where Phoenix city councilman Michael Nowakowski mentioned building a new arena in downtown Phoenix to act as a new home for both the Coyotes and Suns”

    I believe that’s known as “I Just Watched My Neighbor’s House Burn Down But I Still Want To Pursue That Deep-Fried 20-lb Turkey Idea” Syndrome.

  10. Greetings All,

    I have the unfortunate privilege to have lived in Phoenix, Scottsdale, Litchfield Park (across the street from Gila River Arena), and Las Vegas (where I am bred). The situation with the Coyotes has always been a joke from day 1. The original arena was supposed to be near downtown Scottsdale, adjacent to one of the major freeways in Greater Phoenix. That failed because the owner at the time didn’t have the financial means to pay his fair share. So the team moved to Glendale and pretty much piggybacked off of the Cardinals in getting a deal done.

    As a businessman, I do not blame the Coyotes’ ownership groups (there has been many of them as you know) for looking out for their best interests. This is what businessmen do. They care not about anything outside of that. However, when things don’t go your way on the business side, don’t go out your way to demean those who have a difference of opinion from yours. That is what’s going on here.

    What Gary Bettman and IceArizona has said about Glendale city officials is egregious at best and wreckless at worse. The city has been hemorraghing money since the arena was built. Fan support isn’t nearly enough. It is competing against the NFL for 2 months, the NBA throughout the season (Phoenix was originally a Suns town until Sarver screwed that up – more on him in a minute), and baseball for another 3 months (Spring Training is absolutely huge in Greater Phoenix). If you can’t make money after being subsidized by the NHL and Glendale, while keeping all the revenues the arena generates, then it is time for you to go.

    Only in professionals sports are the public expected to provide welfare benefits to sickly rich people. Yet there are real people who need those dollars, real people who needs social services, real people who need a helping hand. But in this twisted world of insanity, these very people are villified as being helpless, lazy, and a detriment to society.

    As a stated earlier, I am a businessman operating of Las Vegas. I pay my fair share of taxes on the business and personal side in a multitude of ways. Imagine if my business wasn’t profitable and I asked city officials to subsidize my losses. You know what would happen to me? I would be skewered by the public, told to either compete or close shop. Yet big business in all industry run roughshod with impunity and without consequence.

    Now in regards to Las Vegas and the arena situation here. There is no way on Planet Earth IceArizona would relocate here. First, the arena is privately-owned and financed by a multi-billion dollar gaming corporation, so forget about receiving anything remotely close to a Glendale-type deal. Second, there is a prospective ownership group here alreaymdy, and they are not going to placate to anyone. Third, if hockey comes to Vegas, it will fail; however, it won’t be at the expense of the local taxpayer. The arena will still produce revenue and will be booked out with events if the would-be-team played there or not.

    Before I get to Sarver, let me mentioned the would-have-been site for the Coyotes in Scottsdale: it is now a satellite campus for Arizona State, producing far higher-paying jobs than the arena would have dreamt of producing. For those believing Sarver would get a new arena: it’s not happening. Every since Sarver bought the team, it has been downhill with the exception of the 7 seconds or less era in early 2000s. When Sarver screwed that up by not willing to reinvest in the product, fan support waned. He really lost all goodwill when he lied to Steve Nash about reinvesting the money he left on the table in resigning there. Sarver is the prime example of a corporate welfare recipient. Only in professional sports can an owner complain that he is not making enough money, and expects the labor force and the paying customer to subsidize his complete and utter ineptitude. Notice I said not enough money and didn’t say not being profitable.

    Essentially the City of Glendale should be applauded for standing up to a professional sporting franchise that has no business being there. Anaheim, Tustin, and Calgary should be commended as well. The NHL failed at this farsical experiment and should cut its losses. Oh and this has nothing to do with the viability of having professional hockey in Sun Belt markets. The concept works with the proper planning, corporate support, and infrastructure. The situation in Glendale is strictly a money play, as the team will not receives subsidies on this level from another city again. If relocation is such a sticky issue for the NHL, how come it approved one of its teams to move from the 8th largest media market in the U.S. with a metropolitan area exceeding 5 million to a city with one less than 1 million in the smallest arena in all of professional sports?

  11. Someone should check for fishy banking activity from the two guys that voted yes. How could anyone affirm such a train-wreck?
    “Tonight’s attendance: 37. The Coyotes thank you for you support.”

  12. If you’re the Suns and you know you want a newer building soon, this is the time to pounce. Play two years in Glendale while the current arena site is demo’d and refitted, come back to a newer building that can accommodate both the Suns and Coyotes. 80+ nights of crowds bigger than 14k downtown is greater than 40+, so development might be spiked by the newer building. And if they opt to play in Glendale (who will be needing the money) for two years, they can build on the old arena’s bones which save money on land acquisition and infrastructure. The footprint of the current Talking Stick Arena site will be big enough if the garage next to the arena comes down, and the arena is oriented East/West.

  13. Neil wrote:

    “Quebec is probably the best relocation option, but it’s hardly something to get all excited about, especially since they’d need to work out a lease with Quebecor.”

    Or they could simply sell the team to Quebecor for a really nice profit.

  14. What the City of Glendale is trying to do is get out of a contract as people have stated “Hemorrhaging” them. But because the deal has not worked out in their favor, they want to take their net home. No one has mentioned that the only loophole these officials are trying to use is IceArizona hired someone who started brokering the deal with “other” potential buyers. Craig Tindall helped write the language while the City was working with other potential buyers but left the City before talks even started with IceArizona. So he has not in anyway part of these proceedings except for in a “consulting” matter with the City in which they asked him for his input. Almost seems like they planted the seed to help them get out of trouble. Sounds all too fishy to me. I am from Chicago. I am a Hockey Fan big time. I root for my Hawks but back my Coyotes since I moved to the Desert. If the people who ran the arena and the Coyotes used some common sense in their ticketing prices, they could make a fortune hand over fist. #1 they dont make a majority of their money off of ticket prices, they make it at the concessions and Team Shop. Fill the damn arena with butts at an affordable price, give them a good product, and they will spend the money. I wouldn’t go to Disneyland if the rides were outdated and Main Street was dirty. They were going in the right direction a few years ago and this past year hit a pothole and derailed. This only complicates it more. I say move them out of there and in with the Suns somewhere. Create an affordable ticket overall to sell out the arena and they will make their money. Not that hard to figure out.