[News] UPD: City of Glendale to vote on new arena agreement with Coyotes

[sureLoss]

http://www.tsn.ca/coyotes-survival-h...attle-1.283772

Senior elected city officials in Glendale, Arizona, say they are exploring whether legal grounds exist for them to void an arena management contract with the Arizona Coyotes, an agreement that calls for taxpayers to contribute $15 million per year over 15 years to the flagging NHL club.
When the city council in Glendale voted to give the owners of the Coyotes $225 million (all U.S. dollars) over 15 years, the money was supposed to be used by the team to manage the 12-year-old Gila River Arena, where the Coyotes play their home games.

The deal helped narrow the losses of a club that sports investment bankers say is a perpetual money loser, bleeding some $50 million or more per year.
But nearly two years after council approved the controversial pact, city officials claim the money that cash-strapped Glendale is paying to the team's owner IceArizona is instead going directly to Fortress Investment Group, the New York-based asset manager which financed holding company IceArizona's purchase of the Coyotes.

Glendale Vice Mayor Ian Hughes says using taxpayer dollars to pay down the team's debt rather than for direct arena management expenses amounts to a breach of contract. Hughes says he hopes in coming weeks to rally support on Glendale's seven-member city council to direct the city's attorney to explore whether the Phoenix suburb can get out of its contract with the Coyotes, a potential legal battle that could finally herald the Coyotes' exodus from the desert.

"The taxpayer got the short end of the stick," Hughes said in an interview. "If they call this an investment, you'd think there would be a possible return. I'm hard pressed to see the benefits to the city of Glendale."

[nik-]

who could have possibly seen this coming?

[Ozy_Flame]

Hello Vegas!

[sureLoss]

I liked Barroway's response to the Glendale asking him to prove he is the majority owner.

Fly up to New York and I will give you 90 minutes of my time.

[King Theo]

I had to check the data to see if that was news from 3 years ago.

Move the team already!

[ForeverFlameFan]

Worst location for a building. No one wants to make the 1 hour-1hour and 30 minute commute to a hockey game, let alone a season ticket holder. Would have been better off downtown or more on the Eastern side by Mesa, Scottsdale, Chandler area.

[Senator Clay Davis]

This is why I figured the NHL would pull an NBA and rig the lottery for the Coyotes. Their time in Phoenix was pretty much dead when they lost Eichel or McDavid. Only question now is Seattle Coyotes or Las Vegas Coyotes.

[Jets4Life]

Originally Posted by Ozy_Flame

Hello Vegas!

Vegas will be an expansion team. If the Coyote move anywhere, the NHL will try to place them in a Western US city (Portland, Seattle, etc.). They want to even out the Conferences with 16 teams each.

[saillias]

Move it to Winnipeg! Winnipeg's market can easily support 2 teams!

[BigT112]

Every summer this comes up. Just move the team and be done with it.

[LanceUppercut]

Originally Posted by Jets4Life

Vegas will be an expansion team. If the Coyote move anywhere, the NHL will try to place them in a Western US city (Portland, Seattle, etc.). They want to even out the Conferences with 16 teams each.

I think they would try to move the team somewhere like Kansas City or Milwaukee (if they build a new arena for the Bucks). I don't think the owners would want to give up the expansion cash from Las Vegas or Seattle. This would automatically balance the divisions too.

[The Original FFIV]

Maybe Barroway should hire Lionel Hutz to enforce the lease terms. Looked for the video clip but could not find. Best I can do is the quote below:

That was a right-pretty speech, sir. But I ask you, what is a contract? Webster's defines it as "an agreement under the law which is unbreakable." Which is unbreakable!

[Erick Estrada]

If the city can somehow void that deal that would probably be the death blow to the franchise remaining in Arizona.

[btimbit]

Just move it already, ffs

[polak]

"All Barroway says he'll give us is 90 minutes, and he says it has to be in New York,"

Haha. Pimp.

[Locke]

I'm sure if there was any merit to this they'd have done it eons ago.

[IgiTang]

Wow... Here we go again.

[Buff]

So, the Coyotes saga returns from it's hiatus.

Okay, Bettman. You have proven that you are willing to do what it takes to make hockey work in non-traditional markets. Now, the city is saying they don't want the team anymore. I think it is time to let them move.

Viva Las Vegas.

[saillias]

"I asked our finance director...if the hockey team packed up and left the next day, what would be the impact, and the answer was an $8.5 million windfall profit for us," Hughes said. "We increased sales tax to the citizens to cover this (arena management deal). We have needs in law enforcement and our fire department that we can't fund. We had to put off purchasing of new pumpers for the fire department. We have three libraries in Glendale and all of their hours have been cut way back."

Damn.

[dash_pinched]

I'm sure this will all be resolved on Monday - I'm just not sure which Monday.