Here’s a fun headline to start your week with:
The article, in the libertarian magazine Reason, doesn’t break a lot of new ground, but it is a great overview of the Arizona Coyotes situation, in which the team relocated from Winnipeg to Phoenix in 1996, then across town to Glendale in 2002, and now is trying to move to Tempe or anyplace else in the Phoenix area that will build them a new arena. The team owners are not just looking to play off cities against each other, though, but get state funding, which is extra-stupid because:
Since the team is already in the area, building a new stadium would not create a new source of tax revenue for Arizona, says Victor Matheson, a sports economist at the College of the Holy Cross. Moving from Glendale to Tempe, Matheson says, merely would shift the economic benefits from one municipality to another.
Building more stadiums in a single metropolitan area will only create more competition for a limited number of major events.
“Lady Gaga isn’t going to play both Phoenix and Glendale,” is how Matheson puts it.
And then there’s:
The Coyotes are unlikely to leave for greener pastures, though, because NHL executives care much more about having a team in the Phoenix area than anyone in the Phoenix area cares about having a hockey team. The Phoenix metropolitan area is the sixth largest media market in the United States, which means an NHL benefits from having a presence there—even if the team is terrible and the fans are apathetic—for marketing purposes and television advertising revenue.
That’s more debatable: The NHL’s national U.S. TV revenue is pretty piddly as these things go, and I really doubt NBC said during negotiations, “Well, since you have that all-important Phoenix hockey viewership market, we’ll tack on an extra $25 million a year.” More likely is that NHL commissioner Gary Bettman is fixated on his “Sunbelt strategy” to to seed NHL franchises across the U.S. South and West, and doesn’t want to back down — though since that’s a strategy predicated on filling U.S. markets to get bigger U.S. TV deals, I suppose Reason is at least half-right. You’d kind of think by now that some of the other NHL owners would be saying, “Gary, this whole Arizona thing isn’t working out, let the team move somewhere that it can actually sell a ticket or two,” but I suppose where there’s arena-subsidy life, there’s hope.