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Report: Even with big playoff success, Coyotes would lose money in Glendale

Jun 6, 2012, 12:17 AM EST

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Former San Jose Sharks CEO Greg Jamison might be the best ray of hope for the Phoenix Coyotes* to stay in that area, but that doesn’t mean it’s a perfect situation for the City of Glendale. An Arizona Republic study of the latest proposal shows that even a lengthy run of playoff success might not make the team profitable.

Prepare for a disturbing (yet abridged) rundown of the dire financial situation for Glendale and the Coyotes, even if it’s not quite shocking.

A Republic analysis revealed that even if the Coyotes went to the Stanley Cup Finals for the next 20 seasons and the arena booked 30 sold-out concerts each year for the next 20 years, Glendale could still expect to lose about $9 million annually.

That figure does not include the city’s annual arena debt payments, which will average about $12.6 million a year over the next 20 years.

Longtime Glendale Mayor Elaine Scruggs, who has said next year’s budgeted $17 million arena management fee is too steep, said Monday she cannot support the deal.

It pretty much keeps getting worse for Glendale/the Coyotes in this report, including a bit where Mayor Scruggs points to dispiriting developments such as the fact that the city “won’t see the construction of new city facilities or park upgrades for at least the next five years.”

It’s not about losing, but how much they lose

Here’s the thing, though. Saying the Coyotes probably won’t be “profitable” seems to belabor the point. The real important factor here is for Glendale; the city is likely to lose a significant amount of money one way or another. Depending on a new deal, the Coyotes have the potential to limit those losses, which is something that tends to get lost in all the doom and gloom.

Yes, it’s a bummer of a situation, but ultimately it might come down to a decision that is the lesser of many evils. Let’s not forget that – ignoring admittedly important factors like market factors and arena details – the Buffalo Sabres and Pittsburgh Penguins seemed doomed going into the last summer of CBA negotiation, too.

Still, it’s a complicated and potentially worrisome situation, but hopefully a best case scenario resolution comes to fruition once all the smoke clears.

* Or maybe Arizona Coyotes?

  1. greatminnesotasportsmind - Jun 6, 2012 at 1:40 AM

    Just announce the relocation to Quebec.

  2. tommytd - Jun 6, 2012 at 6:11 AM

    Who plays ice hockey in the desert???

    • hystoracle - Jun 6, 2012 at 10:11 AM

      Actually the question is who WATCHES hockey in the desert?

      They obviously play quite well given their recent run in the playoffs.

      Just move them already!

  3. lucicfan603 - Jun 6, 2012 at 8:12 AM

    Kansas city scouts

  4. bleed4philly - Jun 6, 2012 at 8:48 AM

    Seattle Baristas

  5. georgemuresanwasmygiant - Jun 6, 2012 at 9:22 AM

    Scruggs needs to shut her trap. She is the one who approved the $25 mil twice, but $17 is too steep? If Glendale would let the Tohono O’odham Nation build their casino/resort across the freeway Westgate, Jobbing.com Arena, and the Coyotes would be fine.

  6. ynothockey - Jun 6, 2012 at 9:43 AM

    Again do people who make comments about hockey in the desert realize that most of the people who live in Phoenix are from somewhere else??

  7. buffalomafia - Jun 6, 2012 at 9:55 AM

    Half of Arizona is illigal immigrants on welfare!

    I can see Kansas City Scouts, Quebec Nordiques or Seattle Sound?

  8. hockeyflow33 - Jun 6, 2012 at 10:08 AM

    Am I the only one who finds this impossible to believe? It just doesn’t make any sense

  9. kwells44 - Jun 6, 2012 at 11:40 AM

    Perhaps you need to change your headline. Your headline says the Coyotes would lose money, but your article describes how the City of Glendale would lose money. Whether or not the Coyotes would be profitable is a different issue and an entirely different analysis.

  10. kingfooj - Jun 6, 2012 at 12:27 PM

    IMHO, when I trekked out to Glendale for game 2 of the WCF, leaving the rink at 9pm after the game to 95 degree heat just didnt feel right….. but other than the temperature outside the game went perfectly! GO KINGS!

  11. t16rich - Jun 6, 2012 at 1:20 PM

    They are not going to Kansas City. I will puke if they go to Kansas City. How is that even an option? And what dumb fan supports that idea? Give hockey to wear hockey matters. I am not saying it has to be Canada, but PLEASE, get out of Phoenix and go anywhere but Kansas City. I think about the Kansas City option the same way Allen Iverson thought of practice.

  12. buffalomafia - Jun 6, 2012 at 1:42 PM

    Kansas City built a new arena when Pittsburgh was suppose to relocate!

    • t16rich - Jun 6, 2012 at 2:31 PM

      I remember that. It was closer to happening than Mario was telling us too. I don’t know why I am so opposed to Kansas City. I guess there are other cities that I think pack more of an excitement for fans than Kansas City will. When looking on a map though, Kansas City would certainly be central and close to alot of other teams, and might add a fun new rivalry with the Blues. I am still pulling for The Pacific Northwest and Canada to get a team first, but on second thought and look, Kansas City really isn’t as bad as I made it out to be in my last comment.

  13. ynothockey - Jun 6, 2012 at 2:55 PM

    Funny thing is I’m sure a lot of people where saying the same things when LA and Anaheim got an NHL team.

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