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Glendale’s proposal to keep Coyotes is a doozy

Jun 27, 2013, 2:18 PM EDT

Jobing.com Arena

The City of Glendale posted the details of their offer to Renaissance Sports and Entertainment (RSE) to help keep the Phoenix Coyotes at Jobing.com Arena. As you might expect from this ordeal, the details are dizzying.

The agreement has the Coyotes staying at Jobing.com Arena for the next 15 years as the arena’s anchor tenant with Glendale paying RSE $15 million a year to run the arena. There’s a catch to all this, however.

According to Mike Sunnucks of the Phoenix Business Journal, RSE has a five-year out-clause to move the team if they pile up $50 million (or more) in losses over that time frame. The City of Glendale has a lot of “unresolved serious concerns” with the deal. Those are:

  • The city bears all the risk if the revenue projected by Renaissance is not realized.
  • The deal requires a $15 million management fee to Renaissance. The city has budgeted $6 million to pay for part of the $15 million arena management fee and Renaissance has projected shared revenue streams to help bridge the gap. Should those projections not be realized, and the city does not receive the projected revenues, then the city would need to make up that loss.
  • The proposed agreement is for 15 years and does not allow for the city to terminate the deal if  revenue projections are not met as long as the Coyotes play in the arena.
  • The proposed contract can be terminated by Renaissance if their cumulative losses reach $50 million, and, in any event, after five years.

The plan is to have the proposal voted on on July 2. Should this deal not pass, the NHL could seek to move the team to Seattle immediately. Next Tuesday will be decision day one way or the other.

  1. tmoore4075 - Jun 27, 2013 at 2:25 PM

    I really have no idea what to say. Does it go through? Does it not? No one has any idea anymore.

  2. The Hockey Fan - Jun 27, 2013 at 2:29 PM

    Please. Can we just move them already?

  3. jacketsfan7 - Jun 27, 2013 at 2:34 PM

    I’d like to

  4. hsnepsts - Jun 27, 2013 at 2:35 PM

    Yes, this just confirms what we’ve known for a while: businessmen are better at business than politicians.

    Glendale and taxpayers are in a tough spot. This deal spells out what has been the reality of the underlying negotiation since the beginning. The NHL has all the leverage, since they have the team. So they are going to use that leverage for money.

    In a nutshell, this is the deal: If the team leaves, it will cost Glendale X million dollars in lost business. So Glendale should be happy to pay the NHL X-something dollars to keep the team in Glendale. Oh, and Glendale, if something changes that we didnt foresee, then we can bail out. But you can’t.

    For taxpayers, its a lose or lose-less situation.

    The problem comes for the original planners that decided to build an arena in Glendale and get an NHL team to fill it. They amortized the cost of the arena over X years, but didnt take the necessary precautions to make sure the NHL team was going to stay for X years.

    • kwells44 - Jun 27, 2013 at 3:50 PM

      You’re right on every point. The other part of the problem is the Coyotes ownership (going all the way back to Winnipeg) have been lousy businessmen. So politicians did a business deal, which put at risk the future of a City and a sports team, with lousy businessmen. What could possibly go wrong?

    • georgemuresanwasmygiant - Jun 27, 2013 at 3:52 PM

      Finally someone with valid points and information. Although, it will probably go over most commenters here, since all they can come up with is “Move team to (fill in the blank city)” as a response.

    • ray2013 - Jun 27, 2013 at 4:28 PM

      I’ve been interested in the business side of the deal, and you nailed it on the head much better than I could have.

      But the real problem is they thought they could make Glendale a destination. People like to go to the downtown arenas to watch the D-backs and the Suns play. Tempe is nice, people like it (where the Cardinals play). I lived in southern AZ for a few years, and not once in my time there, did I ever hear anyone say, I want to go to Glendale.

      So the team has been fighting a problem of a poor location.

      • blc70 - Jun 29, 2013 at 10:09 AM

        ray2013

        The Cardinals play at “University of Phoenix Stadium”located in Glendale, right next door to the hockey arena. They have played there since 2006.

        Prior to that they played in Tempe at Sun Devil stadium at Arizona State University. But 2006 wasn’t exactly yesterday, so you’re throwing our false information.

      • ray2013 - Jun 30, 2013 at 3:04 AM

        When I lived there from 2001-2004, they played in Sun Devils Stadium. If they now play in Glendale, then it’s good to know. But the rest of my point is still valid. Phoenix is great, Tempe is awesome, Scottsdale is great, and Glendale is not like the others.

  5. credible316 - Jun 27, 2013 at 2:38 PM

    Just move to Seattle or Quebec already!

  6. wingz101 - Jun 27, 2013 at 2:40 PM

    I lost interest in this thing a long time ago and now I just follow it out of some kind of sick, morbid curiosity. What’s worse is that the on ice product itself is pathetic and probably plays a huge part in the struggle to attract customers. Yes the Yotes are competitive, but simply because they use some kind of zero-offense, trap first system with a moronic 1-4 forecheck (if you can call it that) as soon as they go up 1-0.

    The love for Coach Tippett makes me laugh. Here’s a guy that’s soley dedicated to not losing. His teams show zero creativity, zero style and well, are a mind numbing bore to watch.

    You really wanna sell Hockey in the desert? You have to do it with something exciting, something people want to watch. The dead puck era era trap they role out now certainly won’t cut it.

    • kwells44 - Jun 27, 2013 at 3:45 PM

      You must not live here, you’re giving the majority of sports fans in Phoenix too much credit for actual knowledge of the game. That applies to football, baseball and basketball, too. Everyone knows, as has been pointed out in the media, ad nauseum, that Phoenix fans are bandwagonneers (is that a word?). Show some Ws and we’re all over it!!! Doesn’t matter how it’s done, we only make noise when the board tells us to, anyway. (No offense to the core fans that appreciate a good product, just talking about the fans that would make the difference between the team maybe breaking even and making money.)

  7. baddogjosie - Jun 27, 2013 at 2:54 PM

    There’s a lot of hockey fans in the Pacific NW that would love to have them.

  8. endusersolutions2013 - Jun 27, 2013 at 3:00 PM

    I hope it goes thru for the good of the NHL. Right now, the conference alignment is a joke – 16 in the east, 14 in the west. Playoffs are division 1st, where in the west, the top 3 teams in each division make it in. The next two are those with the best records, could be the 4 and 5th teams from one division. So, you could have the Canucks making it into the playoffs as a wild card, winning the central division championship. Hugh?

    Neither Detroit nor Columbus wants to go back west. The best way to resolve is have the Yotes stay, then have expansion teams in Seattle and Portland. Now you can have 4 equal divisions among 32 teams.

    Sorry Quebec and Hamilton, your getting a team would make things worse.

  9. delusionalcardsfan - Jun 27, 2013 at 3:00 PM

    Never should have left downtown. :(

  10. barkar942 - Jun 27, 2013 at 3:10 PM

    Should I dare say it- but if the Glendale City Council passes this interesting “I am totally backed in the corner” deal, doesn’t anyone expect the Goldwater Institute to rear its head over this?
    Sounds like the taxpayers need some help on this one.
    Time for the Seattle Snow Owls. (Man- could that make for some interesting logos using the face of the owl for the letter O).

    • ron05342 - Jun 27, 2013 at 5:15 PM

      Seattle Metropolitans.

      Ottawa did it, Seattle can do it too. Go back in time and actually honor a former Stanley Cup championship team.

      • barkar942 - Jun 28, 2013 at 1:06 AM

        But there is already a crappy Metropolitans team- they play in NY and shortened their name many years ago to Mets! LOL!
        Interesting thought, Ron.

  11. soundsofsuccess7 - Jun 27, 2013 at 3:34 PM

    There was less than 100 people at one Ducks at Coyotes game I watched.

    • ron05342 - Jun 27, 2013 at 5:16 PM

      That really isn’t very believable. Do you have a date when this occurred?

  12. guitarmy204 - Jun 27, 2013 at 3:48 PM

    So if this deal is signed its guaranteed to move in 5 years.

  13. dbara43 - Jun 27, 2013 at 4:08 PM

    I think this deal is teetering on the bridge of failure. It’s a guaranteed money loser for the city of Glendale, the question is how much money do they want to lose? Without a tennant they will lose $X millions, but with the deal they might only lose $X.X millions, OR they could lose $XX millions. Doesn’t pencil out to me.

    Also, as far as the league goes, they group they have has agreed to pay %50 million more for teh team than RSE, so we know which side the league comes down on.

    db

  14. mpops86 - Jun 27, 2013 at 4:23 PM

    MOVE. THEM. ALREADY.

  15. mpg44 - Jun 27, 2013 at 5:04 PM

    It just really seems that the city of Glendale doesn’t want a hockey team. But why is the NHL insisting on shoving one down their throats ? Move the team to a city who is ready , willing , and able to support a team and be done with it already!!

  16. steeltuff - Jun 27, 2013 at 9:02 PM

    Are there coyotes in the state of Washington? Is there any jazz in Utah?

  17. stachowiakjp - Jun 28, 2013 at 12:25 AM

    I think it’s finally time for the return of the 1917 Stanley Cup Champions Seattle Metropolitans or simply Seattle Mets.

  18. scionofflame - Jun 28, 2013 at 7:43 AM

    I can’t say how stupid I think it is that Glendale is throwing SO MUCH at this business. There’s several reports out there that this deal would cut into the police and fire department funding for the city of Glendale too.

    Seems completely irresponsible.

  19. silversun60 - Jun 27, 2013 at 2:38 PM

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