I can understand why Glendale is desperate to keep the team. They built the arena for the Coyotes (I think, my history on this one might be way off) and some crappy Lacrosse team that folded a few years ago. If the Coyotes leave, then the city has a huge, high-priced arena, sitting empty. It's sort of the opposite to Oklahoma City - didn't they build an arena BEFORE having a team and had to try finding a team to move in (the Thunder finally did, but now Seattle is missing an NBA team).
That all being said, it seems idiotic to beat the dead horse to keep a team that can't draw 50% capacity. I don't get it.
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