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Three budget scenarios laid out for Glendale: None include old Coyotes arena payment plan

Sep 19, 2012, 9:42 PM EDT

Shane Doan Getty Images

Glendale’s interim City Manager Horatio Skeete has prepared three scenarios involving the Phoenix Coyotes, based on a report by the Arizona Republic.

All three scenarios suggest the city is in dire financial straits.

The projected best case scenario, from a budget perspective, is that a sales-tax hike goes forward and Glendale restructures its arena payment plan.

Under the current proposal, Glendale would pay prospective Greg Jamison buyer $94 million over the initial five years of a $300 million, 20-year plan, but Skeete wants that reduced to $72 million.

The next scenario is that the voters reject the sales-tax hike, but the city still gets its restructured arena payment plan, and the third is that the Phoenix Coyotes leave. What’s obviously missing is a scenario where the city goes with the original $300 million plan and the Coyotes stay in Glendale.

It’s also worth noting that all three of these scenarios are projected to result in the city taking a financial hit annually over the next five years. Even if the sales-tax stays in place and the arena payment plan is restructured, Glendale would need to reduce expenses by $3 million this year and $6 million each of the following four years.

Jamison needs to secure a lease before he can buy the team. At this point, the Globe and Mail suggests that the odds of Jamison completing his purchase are “bleak.”

That all being said, when Shane Doan recently re-signed with the Coyotes, he said he was confident about the team’s future in Arizona.

  1. braddavery - Sep 20, 2012 at 12:16 AM

    “Sorry Shane, we are moving to Seattle.”

    • vanchuk - Sep 20, 2012 at 12:37 PM

      Well he was trying to decide between playing for the Coyotes or the Canucks…now he’ll play for the Coyotes, in front of all the Canucks fans that can’t afford tickets to games in Vancouver

  2. nothanksimdriving123 - Sep 20, 2012 at 1:17 AM

    With all due respect for the sentiments of the tens of millions of Coyotes fans, the only fiscally sane scenario is this franchise moving to greener pastures.

    • freneticgarfieldfan - Sep 20, 2012 at 3:09 AM

      from the city’s point of view, they’d still be on the hook of the arena cost, also without the ‘Yotes. The presence of NHL at least ease those costs.

  3. dayno66 - Sep 20, 2012 at 8:30 AM

    It be too funny If they moved now. Derp Shane Doan

  4. mrknowitallmtl - Sep 20, 2012 at 10:51 AM

    Bring em to Canada. They will sell out every game almost . Just don’t put em in Quebec. No English person deserves tht .

  5. blomfeld - Sep 20, 2012 at 2:07 PM

    “Would somebody just shoot the damn thing and put it out of it’s misery” …

    Today’s forecast for Phoenix calls for a temperature of 106 degrees with sunny skies and a slight NNE breeze at 6 mph. Yeah, I guess they can sure feel hockey in the air now, eh ? The entire “sunbelt” expansion effort has been a complete and abysmal failure and it’s the core underlying reason for the NHL’s financial problems today. Expanding into places like Phoenix and Dallas made about as much sense as the WNBA today expanding into Saudi Arabia and Yemen. The league needs to contract and it needs to migrate northward. There can be no further delay on this issue …

    I say deal with the “problem” and deal with it now !

  6. jersey77girl - Sep 20, 2012 at 8:27 PM

    How does Glendale feel about losing the 2012-13 season to a LockOut? Seeing as they’re in dire financial straits to begin with, doesn’t cancelling games mean whatever revenue the city could have gotten from those games is lost? Glendale should make sure whatever deal it signs regarding the arena that they receive financial recover of money lost due to a lockout.

    I think NHL cities should start filing suits against any NHL team that received or receives any public funding for lost revebues during the lockout. When teams ask local governments for funding for their arenas, they present justifications about how the local goverment would benefit [taxes, parking, revenue for local businesses]. Local governments that provided public funding for NHL arenas based on these arguements from team owners should be able to sue/receive compensation from the NHL teams preventing them [and local area businesses from recovering that money during the lockout]

    • cardsandbluesforever - Sep 20, 2012 at 9:50 PM

      i agree 100%. the financial loss has even more impact in smaller market teams.
      only problem is the teams would be required to play games even if the players reject contracts. you know what that means if those 2 things happen…. replacement players. i will be sharpening my skates if that goes down.

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