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

[Locke]

Originally Posted by Resolute 14

15 year deal that paid $15 million per year. They just finished year two.

Okay so $200M isnt unreasonable at all, its essentially the remaining cash value of the contract.

So if Glendale cant get that Arizona loophole to stand up in court and back away from the deal then they're in breach of contract and are well and truly screwed.

"Yeah Tommy...proper screwed!"

[FlamesAddiction]

Originally Posted by Vulcan

Yeah okay but whatever their motives the re-alignment has created a problem for QC and what the NHL has been talking about is expansion to the West with Las Vegas and Seattle being the priority and none about Quebec. I'm not saying Quebec has no chance but their odds for an expansion franchise or moving the Coyotes there is slim as they would need to convince Detroit or Columbus to move back West.

I guess I just don't see alignment as an issue as it can always be changed. Winnipeg wasn't really a hot relocation topic at the time, but when there is an arena and a willing owner, it is probably going to trump geography every time.

Personally, I wish the NHL would do away with geography based alignment as it just strongly favours eastern teams anyway. It's not like teams are traveling by bus. I know it would have a slim chance of passing, but as a fan I would prefer it personally.

[Locke]

Originally Posted by FlamesAddiction

I guess I just don't see alignment as an issue as it can always be changed. Winnipeg wasn't really a hot relocation topic at the time, but when there is an arena and a willing owner, it is probably going to trump geography every time.

Personally, I wish the NHL would do away with geography based alignment as it just strongly favours eastern teams anyway. It's not like teams are traveling by bus. I know it would have a slim chance of passing, but as a fan I would prefer it personally.

I think it has less to do with the method of travel and more to do with the fact that travel in general is horrendously expensive.

[automaton 3]

The timing is curious.

I wonder if the audit revealed something that lead to this (drastic) action.

There are some moving parts here that aren't yet apparent.

[Jordan!]

Originally Posted by Locke

Okay so $200M isnt unreasonable at all, its essentially the remaining cash value of the contract.

So if Glendale cant get that Arizona loophole to stand up in court and back away from the deal then they're in breach of contract and are well and truly screwed.

"Yeah Tommy...proper screwed!"

The damage is already done, the bid for the 2018 World Jrs is gonzo amongst uncertainty from contract holders with the team and their marketing partners.

A huge WTF are they doing here.

[Jordan!]

Originally Posted by automaton 3

The timing is curious.

I wonder if the audit revealed something that lead to this (drastic) action.

There are some moving parts here that aren't yet apparent.

No, it is a council made up of 5 members who are grandstanding for their future careers.

End of story, there is no thought or reason to this otherwise, it's politics

[GioforPM]

Originally Posted by CroFlames

Coyotes are also as stupid as the City.

They plan on suing for $200 million? What taxpayer in his right mind would actually buy tickets to the Coyotes after they just sued you (literally). Gong show no other words.

Taxpayers who don't pay taxes to Glendale (i.e. Scottsdale, Phoenix, Mesa, etc. etc. residents).

Really, what choice do the Coyotes have? Just say "gee, you signed a contract and now you are breaking it, but we will just accept it"?

[Vulcan]

Originally Posted by FlamesAddiction

I guess I just don't see alignment as an issue as it can always be changed. Winnipeg wasn't really a hot relocation topic at the time, but when there is an arena and a willing owner, it is probably going to trump geography every time.

Personally, I wish the NHL would do away with geography based alignment as it just strongly favours eastern teams anyway. It's not like teams are traveling by bus. I know it would have a slim chance of passing, but as a fan I would prefer it personally.

I'd like to see Quebec get a team but alignment is a problem and was even
brought up by Bettman in his interview last night when questioned about Quebec.

The main reason for the new alignment is so that teams are all in the same time zone or close to it, so their fans don't need to stay up till midnight to watch the out of town games.

[Resolute 14]

Originally Posted by automaton 3

The timing is curious.

I wonder if the audit revealed something that lead to this (drastic) action.

There are some moving parts here that aren't yet apparent.

It's the same kind of thinking that resulted in sports unions going on strike right before the playoffs started. Glendale is trying to exert maximum pressure on renegotiations. (In fact, in the meeting last night, some councilors frequently called it a vote to 'renegotiate', not a vote to terminate).


Anyway, in an accident of good timing, the mayor of Glendale is willing to let you taze him for $10,000.

http://www.azcentral.com/story/news/...c43dc4d911133f

Odds LeBlanc steps up?

[Property Manager DB]

Crazy about the 2018 world jrs

[GioforPM]

Originally Posted by Fire of the Phoenix

I don't feel like looking it up but I'm curious to the largest settlement awarded/bargained for when it comes to a city being sued. $200m sounds like enough to drive a place like Glendale into bankruptcy. Maybe that is their plan to wipe the slate clean...

http://www.theguardian.com/law/short...-city-new-york

[Resolute 14]

Originally Posted by Vulcan

They don't pay the full $15M though as the Coyotes paid the city about $6.5M.

The city pays the Coyotes $15 million per year to manage the arena. As part of the deal, the Coyotes return a percentage of various revenues to the city. But what they pay doesn't come remotely close to what they get back, so the new city council is upset. This fact is also why the old city council, which was more Coyotes-friendly, rushed the vote through.

[sureLoss]

Apparently there is already some history between the former city lawyer that the Coyotes hired and City council.

A city councilor reported him to the Bar claiming that he was advising the Coyotes while still under the cities employ. The Bar did not find any evidence.

[FlamesAddiction]

Originally Posted by Locke

I think it has less to do with the method of travel and more to do with the fact that travel in general is horrendously expensive.

So might as well make it that way for every team.

As a fan it drives me bonkers when players sign in the east because of the lighter travel.

The expenses would probably be the main issue, but even then, the costs of flights and accommodations aren't always aligned with distance.

[Vulcan]

Originally Posted by Resolute 14

The city pays the Coyotes $15 million per year to manage the arena. As part of the deal, the Coyotes return a percentage of various revenues to the city. But what they pay doesn't come remotely close to what they get back, so the new city council is upset. This fact is also why the old city council, which was more Coyotes-friendly, rushed the vote through.

Well TSN reported that they only paid $8.5M net after getting $6.5M back. They have 13 years left so a more reasonable settlement would be about $110.5M.

[Resolute 14]

Well, you never sue for what you want, you sue for a figure that makes what you want seem reasonable.

Beside that, the contract the city just voted to cancel had $195 million in outstanding payments, so the $200 million figure seems fitting. But I agree that the city would cite the revenue streams back to Glendale to try and reduce an award if the tide of legal action turns against them.

[Canehdianman]

Originally Posted by Vulcan

Well TSN reported that they only paid $8.5M net after getting $6.5M back. They have 13 years left so a more reasonable settlement would be about $110.5M.

If that is the only amount in question, the settlement would be even lower, to take into account the time value of money (unless it was paid annually for 13 years).

There will be other costs/claimed amounts though. $200M seems pretty reasonable as an opening demand.

[GioforPM]

Originally Posted by Resolute 14

Well, you never sue for what you want, you sue for a figure that makes what you want seem reasonable.

Beside that, the contract the city just voted to cancel had $195 million in outstanding payments, so the $200 million figure seems fitting. But I agree that the city would cite the revenue streams back to Glendale to try and reduce an award if the tide of legal action turns against them.

This. A claim has the maximum amount you could possibly get if you suffered the most damages possible. The defence will include mitigation - the argument that some damages could be avoided or lessened if the Coyotes take certain steps.

So if a tenant breaches a 10 year lease, the landlord sues for the rent remaining under the lease, but the tenant replies "yeah, but you can rent the unit for the same amount within two months, so you are only out two months rent".

[Mattman]

It's nice to see that the more passionate fans are speaking out
http://www2.tsn.ca/bardown/Story.asp...pute&id=543113

[Jordan!]

Originally Posted by sureLoss

Apparently there is already some history between the former city lawyer that the Coyotes hired and City council.

A city councilor reported him to the Bar claiming that he was advising the Coyotes while still under the cities employ. The Bar did not find any evidence.

and it was dismissed, which is a key portion of evidence against Glendale.