Quote:
Originally Posted by troutman
http://www.bizjournals.com/phoenix/n...ve.html?page=3
The biggest potential legal challenge for a Coyotes deal will likely be how the city crafts an arena management fee. Right now, Glendale pays the NHL $25 million annually to run city-owned Jobing.com Arena.
Everyone and their Canadian brother know that it doesn’t cost $25 million to run the arena, and the money is really to help cover the Coyotes’ losses.
Goldwater hasn’t challenged those two $25 million fees but could go after a Jamison deal if the deal raises the group’s gift clause ire.
Look for Glendale and the NHL to try to craft an arena management fee deal that helps get a deal done but avoids the courtroom.
I have been asked what I think will happen - I have no idea.
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I would expect the NHL, Jamison and Glendale will have crafted a pretty well supported argument as to why whatever fee they agree upon is reasonable before they ever get to the point of having it challenged. At that point it will really be a question of whether or not GWI has the ability to tear any support apart, or craft novel arguments as to why the fee shouldn't be allowed. Based on GWI's track record I don't like their chances, it seems that when it comes to actually ligating an issue, as opposed to political posturing, their skill set disappears. Unless they're just rope-a-doping all of us.