Skip to content

Coyotes may turn a profit if lockout wipes out the season

Dec 26, 2012, 1:25 PM EDT

Coyotes-logo

The NHL lockout, now in its 102nd day, has meant bad news financially for most teams. For the league-owned Phoenix Coyotes, however, it might mean they get to turn a profit.

Mike Sunnucks of the Phoenix Business Journal reports the team’s new $300 million lease agreement with prospective buyer Greg Jamison would help keep the team in the black.

The bulk of that deal is the city paying Jamison on average $15 million per season to run Jobing.com Arena. The first season of that deal is for $11 million but is pro-rated to when Jamison closes on the purchase.

“The $11 million dollar figure would have been for a full year,” said Glendale spokeswoman Julie Frisoni. “Since we are now halfway through the year, it will most likely be in the range of $5.5 million to $6.5 million. It just depends on when the purchase of the team is complete and when Jamison takes over management of the facility.”

It’s remarkable that it would take a complete meltdown of a year where no hockey is played in order to help the Coyotes make money, but in this situation does anything surprise anyone?

Should the season be saved, the Coyotes would have to hope the fans return to fill out the building for every game or else they’ll risk having another financially losing season.

  1. bhawksrule - Dec 26, 2012 at 1:30 PM

    An NHL owned team making more money (losing less?) because they aren’t playing?
    ALL MAKES SENSE NOW

    • nothanksimdriving123 - Dec 26, 2012 at 3:28 PM

      What an intriguing business model, wherein the business owner only makes a profit by withholding the product from the would-be buyers. I do hope my local grocery store doesn’t go this route!

  2. blomfeld - Dec 26, 2012 at 2:01 PM

    “has meant bad news financially for most teams” ? …

    Sorry, but I have to respectfully disagree with Yerdon on that statement. The truth is that to date, this lockout has already improved the bottom line for as many as 18-20 franchises throughout the league. It’s a shame that it’s like this, but that’s unfortunately where we are (ie: and to think people had the nerve to scoff at my “contrived” lockout theory, eh?). At any rate, what this all boils down to is the fact that the players will now have to face reality. Theirs’ is no different than any other industry or profession. When times are tough, jobs are lost and those remaining take pay cuts.

    An analogy could be made comparing the NHL players today to some hippie in need of a haircut. The hippie walks into a barber shop and begins to inquire about various possible hair styles. Will it be a modest trim? … perhaps a stylish perm? … or maybe just a little off the back? Well much to the hippie’s dismay, a “no nonsense” barber suddenly barks at him … “get in the chair boy and shut up! … we’re gonna take care of that mess and make you look like a real man!”. The hippie realizes that it’s probably best to comply and so he proceeds to have his head shaven clean. When the barber is finished (15 seconds later) the “once” hippie is feeling a bit of shock. But after he pays and thanks the barber and he’s out on the street, he glances at himself in a store window and realizes much to his surprise, that he actually “really” likes his new clean image! :)

  3. spongebobsportspants - Dec 26, 2012 at 2:01 PM

    Sooooo….. Is this the reason we have a lockout? Naaaa, that’s crazy! ….isn’t it?

  4. sportsfan69 - Dec 26, 2012 at 2:41 PM

    Blomfeld,

    Great analogy. Let’s see if “the boys” will figure it out. Not all the players are boys, except for the 18 key members of the NHLPA. They could have been playing back on November 1, instead they lose a half season salary. And for what????

    If they keep it up, it will be the an entire season loss with NO salary. I hear Russian airplanes are top notch and they can enjoy the Russian winters. Like our forefathers. The NHLPA can enjoy the Kessel.

    • williplett - Dec 27, 2012 at 3:16 AM

      It was super classy to reference the Lokomotiv tragedy in such a self serving and sarcastic way. I’m a Wild fan who was quite sad to see Pavol Demitra lost along with the rest of the team. Fourty three people died on that plane and it would be nice if you could show just a little bit of respect for them instead of acting like a jackass straining mightily-and failing, by the way-to make your point.

      Thanks.

  5. matt8204 - Dec 26, 2012 at 3:27 PM

    If this doesn’t scream “broken business model”, I don’t know what does.

  6. id4joey - Dec 26, 2012 at 3:40 PM

    There are at least 7 teams in the NHL that would be better off financially without a season. That’s how bad things are right now. These teams want to be competitive for their fans but its costing them more than they can afford because the salaries have increased way beyond their means. I know you kids reading this will express you disagreement with a thumbs down, but that’s the reality of the current situation. A new CBA is needed to help align salaries with the current economic situation.

    • matt8204 - Dec 26, 2012 at 4:17 PM

      That’s what we were told in 2005. But trust us, we’ll get it right this time. Yeah, right. We’ll be in the same boat 8-10 years from now.

      • id4joey - Dec 26, 2012 at 5:04 PM

        You know matt8204, if you’d have an open mind, think business economics, and look at the impasse from the owner’s perspective, then you’d get it. Many here could explain to you the economic differences between 04 and this year. When this whole mess started many took sides without having all the data. Over time those same fans learned more and more about the business aspect, and became knowledgeable about the issues separating players and owners and were able to provide meaningful input. However, you refuse to grow, and with comments like the one below you are only demonstrating your immaturity.

        Maybe you should move to a forum where you are knowledgable abiut the tooic so you don’t waste your time. There has to be forums outdoor about topics that you are knowledgable. Star Wars? Lord of the Rings? Seriously. Find something meaningful.

        matt8204 – Dec 26, 2012 at 3:28 PM
        This is beyond stupid. Just go away.

      • matt8204 - Dec 26, 2012 at 6:36 PM

        Stalk much?

    • williplett - Dec 27, 2012 at 3:58 AM

      The top ten owners/ownership groups have a collective personal worth of about twenty five billion dollars. The other twenty owners/ownership groups are worth billions. Why are you crying for these amazingly rich people? Because a few underachieving 3rd liners made millions during the last few years of record revenues for the league? Because the teams that Gary and the league placed in non-traditional markets are failing? Because the superstars that the owners willingly signed to gigantic contracts refuse to allow their contracts to be rolled back?

      Help me out here, because it looks to me like the owners could have played this season under the old CBA yet refused because they wanted to make just a little bit more by crushing the NHLPA.

      • duster1982 - Dec 27, 2012 at 9:27 AM

        and you seriously think the players would negotiate anything while playing under the old CBA?

  7. sampulls - Dec 26, 2012 at 3:53 PM

    id4joey

    Great post….

    The PA has no defence against the facts you raised (in fact, the PA has admitted that the are fully aware of all the teams that are losing money)….the only ‘argument’ they can bring to the table in this collective bargaining is that the ‘players have given back’ enough…now it’s the owners turn! Sound ‘economic’ argument (queue the dripping sarcasm).

  8. sampulls - Dec 26, 2012 at 3:55 PM

    PS….I used to side with the players until I started reading all the facts. As much as I didn’t want to keep an open mind, I did….now it’s crystal clear that the players don’t have a leg to stand on.

    • id4joey - Dec 26, 2012 at 5:13 PM

      You know you’re not the only one, and by being inquisitive you did some research and gained a lot of knowledge. You’re obviously a very smart person to have taken the time to do research and get to the root cause of the conflict. If anything, this conflict has made some fans much more knowledgeable about the business side of the league. It’s still ugly and an embarrassment, and I do hope we find labour peace for many CBAs to come.

  9. manchestermiracle - Dec 27, 2012 at 12:06 AM

    It’s becoming rather sad (and hilarious at the same time) that I keep reading comments here on how this disaster is the players’ fault. The owners lock them out, pound a new CBA down their throats, claim it will solve the league’s problems and then repeat the whole mindless exercise a few years later.

    The owners run the league and yet cannot put together a profitable business model. The players negotiate contracts with the owners with no way of knowing the owners are blowing smoke when they offer long-term, large-dollar contracts, since the owners do not make their financial status available to anyone. And yet lost seasons are somehow the players’ fault.

    Players don’t expand the league into previously non-hockey areas, plot the league’s business model, arrange the schedule, negotiate lease agreements, or keep the books. The owners do all that. And they continually prove that they are apparently horrible at it. But an utterly dysfunctional league is the fault of the hired help. Right. Got it. At this point I think I’d go with whatever plan the players’ union wants to implement, since the owners’ side has graphically proven that they are simply inept at running a viable league. Twice.

    • blomfeld - Dec 27, 2012 at 12:16 AM

      “Players don’t expand the league into previously non-hockey areas” …

      that’s true enough Miracle … and yet they seem to have no problem playing in those non-hockey areas for millions of dollars, eh? … no matter how you try to spin it, they are equally “guilty” by accessory to the fact … this is no different than someone who happens upon a lost wallet and then sees fit to empty the contents for himself …

      • williplett - Dec 27, 2012 at 3:06 AM

        At BEST that is a painfully strained analogy, Blomy. At worst it is another naked pro-owner excuse for the current situation. Players drafted by the Panthers, Blue Jackets, Thrashers, Predators and Coyotes were “guilty” of taking the money the teams were obligated to pay them for controlling their rights?

        Come on. That is cracked, even by your standards.

  10. florida727 - Dec 27, 2012 at 12:52 PM

    Sorry, I’m not being a smart-@$$ here, I’m actually asking these questions strictly out of my own ignorance, but are players’ contracts guaranteed? Or at least are some of them? Are there certain players that are getting paid during this “lock out”? If the owners are locking the players out, is it considered to be “by their choice”, thereby making it possible that some players are still getting paid despite not playing? Just curious. No hidden agenda behind my questions.

  11. id4joey - Dec 27, 2012 at 2:36 PM

    For sure there are guaranteed contracts, but not sure if all contracts are guaranteed. There are some players being paid during the lockout. These players were on the injury reserve list when the season ended and were not medically cleared to start the season. Such players also have access to team medical staff and facilities.

Featured video

Detroit must exploit Boston's young D
Top 10 NHL Player Searches
  1. T. Oshie (3925)
  2. M. Duchene (3374)
  3. B. Bishop (2738)
  4. D. Backes (2712)
  5. E. Malkin (2462)
  1. O. Palat (2430)
  2. R. Getzlaf (2381)
  3. S. Mason (2314)
  4. H. Zetterberg (2196)
  5. F. Andersen (1984)