Skip to content

Coyotes ‘out clause’ means more uncertainty in the desert

Jul 3, 2013, 11:20 AM EDT

Last night was a good one for Coyotes fans. The prospective owner of the club, Renaissance Sports and Entertainment, got its $225 million arena-management agreement approved by the City of Glendale, allowing the club — to be called the Arizona Coyotes — to remain in the desert.

“For the people of Arizona and for Coyotes fans, we’re finally in a position to begin focusing on life without all the uncertainty,” NHL commissioner Gary Bettman said.

But with all due respect, much uncertainty remains. In large part because of this:

source:

That there is the contentious out clause that RSE was able to negotiate, allowing it to terminate the agreement (and relocate the team, presumably) after five years should cumulative losses reach $50 million.

RSE has repeatedly said its intention is to keep the franchise in Glendale for the long term and that the out clause was only needed to satisfy lenders.

Others are more skeptical, wondering if RSE’s end goal has always been to relocate the Coyotes. It should be noted that, in five years, new arenas could be standing in Seattle, Quebec City, and Las Vegas.

Whatever you believe, the following questions are worth asking now and monitoring going forward:

Will Coyotes fans rally around the out clause, knowing if they don’t support the team they could lose it? Or, will the out clause serve as an ongoing roadblock to making a financial and emotional investment?

How will the Coyotes address payroll? They’ll need to spend wisely to keep losses to a minimum; however, if they don’t spend enough they’ll risk icing a bad team and missing the playoffs (which would, of course, hurt revenues).

How high will the salary cap/floor reach over the next five years? Some have suggested it could go up considerably, making it even tougher on the NHL’s have-nots.

Yesterday, Bettman sounded optimistic at the potential for success with the Coyotes no longer being run by the league.

“With ownership that’s committed to making the franchise a success, with an opportunity for businesses and fans to know that there’s no uncertainty, we think that this franchise can do very, very well,” said Bettman.

We shall see.

Latest Posts
  1. Poll: Will the Sabres surprise critics this season?

    Aug 28, 2014, 7:11 PM EDT

    Tyler Myers Getty Images

    They have a lot of players on their roster with something to prove.

  2. Ryan White has surgery on pectoralis muscle

    Aug 28, 2014, 5:59 PM EDT

    Ryan White Getty Images

    There’s no timetable for his return.

  3. Under Pressure: Mikhail Grigorenko

    Aug 28, 2014, 4:47 PM EDT

    Mikhail Grigorenko Getty Images

    The former first round pick is entering the last season of his entry-level contract.

  4. NBC’s Dan Patrick: NHL to Vegas by 2016

    Aug 28, 2014, 2:29 PM EDT

    Las Vegas Getty Images

    Arizona or Carolina could relocate according to the host.

  5. No contract talks between Milano and Blue Jackets

    Aug 28, 2014, 1:33 PM EDT

    2014 NHL Draft - Round 1 Getty Images

    Milano clears the air on deal with Columbus.

  6. AHL gets drug testing program

    Aug 28, 2014, 12:36 PM EDT

    AHL logo

    To be implemented for 2014-15 season.

  7. Video: Ducks’ Ryan Kesler’s hilarious Ice Bucket Challenge

    Aug 28, 2014, 12:09 PM EDT

    Ryan Kesler AP

    Calls out former coaches Marc Crawford, Alain Vigneault and John Tortorella

  8. Looking to make the leap: Sam Reinhart

    Aug 28, 2014, 11:12 AM EDT

    Sam Reinhart AP

    After a solid junior career, hopes to make the Sabres as an 18-year-old.

  9. Report: Tomas Kaberle ‘in line’ to attend Devils’ camp

    Aug 28, 2014, 10:02 AM EDT

    Tomas Kaberle AP

    Last appeared in 10 games with the Montreal Canadiens during the 2012-13 season.

  10. Ex-NHLer Poeschek faces assault charge

    Aug 28, 2014, 9:00 AM EDT

    Court House

    He is scheduled to appear in court on Oct. 9.

  11. It’s Buffalo Sabres day on PHT

    Aug 28, 2014, 8:00 AM EDT

    Cody Hodgson Getty Images

    They’re in the middle of a rebuilding process.

  12. Eichel, like McDavid, will showcase his skills in Buffalo this fall

    Aug 27, 2014, 10:49 PM EDT

    Jack Eichel Getty Images

    Of course, neither will be wearing a Sabres’ uniform – not yet at least.

  13. Boston extends affiliation with Providence, Pandolfo named development coach

    Aug 27, 2014, 9:40 PM EDT

    Jay Pandolfo Getty Images

    They’ve also appointed Don Sweeney as the AHL team’s new general manager.

  14. Poll: Was 13-14 a fair representation of what Detroit was capable of?

    Aug 27, 2014, 8:28 PM EDT

    Pavel Datsyuk, Henrik Zetterberg Getty Images

    It matters given that they will start next season with a largely unchanged roster.

  15. Alfredsson’s future remains uncertain with camp looming

    Aug 27, 2014, 7:20 PM EDT

    Daniel Alfredsson Getty Images

    Ken Holland hasn’t been in contact with him lately, but that will change soon.

Top 10 NHL Player Searches
  1. C. Price (1894)
  2. J. Harding (1871)
  3. M. Staal (1732)
  4. J. Giguere (1665)
  5. J. Thornton (1487)
  1. A. Ekblad (1388)
  2. B. Bishop (1313)
  3. J. Spezza (1298)
  4. A. Semin (1290)
  5. C. MacArthur (1259)