General Ongoing Coyotes saga thread

[troutman]

City of Glendale - Budget Workshop transcript:

http://hfboards.hockeysfuture.com/sh...148345&page=12

Mayor Elaine Scruggs: Arena Management…Councilmember Alvarez’s favorite idea/subject. Page 294 we have $20 million plugged in for next year. I will not support a budget that has $20 million plugged in for arena management… and I’m not just going to end it right there. I’m gonna tell you… um… Everybody in this room knows, I have been asking for information since June… that I have repeatedly done this in every way, shape or form possible and have gotten nothing. Last time at our meeting of February 28th, I think it was, everyone agreed you would get it on March 20th. I watched… listened to the meeting on March 20th… not one word about it. So I’m going to come up with my own number.

Mayor Elaine Scruggs: Ok… first of all… what I am offering my comments on the draft, the draft budget that the staff presented to us when we started all this back in February…. So my comments are on that. The $11 million is what I think we would spend instead of the $20 million that is in the book, based on the figures I have had from the arena from past years and based on what Phoenix spends for U.S. Airways. It can’t be zero… we own a building… there are expenses… somebody has to run it… and pay the salaries and so forth… So instead of $20 million, I am suggesting $11 million. Separately, I am suggesting that anybody who is interested join me in writing a letter to Gary Bettman… saying release us from that $20 million that is in escrow and let us pay you over time because you have just about….

http://translate.google.com/translat...le-135244.html

It has not been kind to Gary Bettman and the NHL accusing them of leading the city in a financial hole without ensuring that the team would move does not.

"We have fooled" (They misled us), the mayor said on Tuesday during the next budget review of his city. We were held hostage for years. "

[Northendzone]

fortunately for Glendale Jerry Riensdorf is going to buy this team very soon

[troutman]

Originally Posted by Northendzone

fortunately for Glendale Jerry Riensdorf is going to buy this team very soon

Jerry doesn't mind losing $30 Million per year?

[Sidney Crosby's Hat]

Originally Posted by Northendzone

fortunately for Glendale Jerry Riensdorf is going to buy this team very soon

Sounds to me like Glendale's tired of putting money into this sinking ship and is about to cut the strings.

Any deal involving the purchase of the Coyotes would still need to be heavily subsidized by the city and I don't see that happening anymore.

HOWEVER, I also think that any threat to move the team for next season by the NHL is a total bluff (Seattle and Quebec are not ready). I wouldn't be surprised if the NHL accepted the $11 million and ran the team in Phoenix one more year. Colisee should be ready for 2013-14 though.

They'll tack next year's losses onto the purchase price.

[Regular_John]

This saga has dragged on for so long that I wouldn't be shocked if we end up seeing a Baltimore Colts' style midnight move pulled by the NHL.

We just wake up one morning to the news of "NHL has moved the Coyotes to Quebec/Seattle/Kansas City and has announced it's intention to sell the team to Billionaire Bart" while Glendale is left holding the bag of an empty arena.

Unless the NHL is planning to contract (unlikely) and is simple holding onto the Coyotes as a bargaining chip for the next CBA, "We'll concede on points [X,Y,Z] with the understanding that the NHLPA will not interfere in our decision to dissolve the Coyotes franchise"

Although I admit I've stopped following the saga since the Thrashers moved to Winnipeg, is there any chance of a legit buyer at this point?

[troutman]

Glendale at War with the NHL


http://thehockeywriters.com/glendale...-with-the-nhl/

The saga about the Phoenix Coyotes took another twisted turn yesterday when the City of Glendale Mayor Elaine Scruggs “blew a fuse” during the Glendale City Council Budget Workshop. Before the Coyotes’ last home game of the season where they blanked the Columbus Blue Jackets 2-0 thanks to a 54-save effort by goaltender Mike Smith, the City Council met for its monthly session. What was supposed to be a regular and informal session about the matters of the city turned into a key step in the whole saga surrounding the future of the NHL in the desert.

With only a few days remaining to the regular season, the clock is ticking fast to make a decision about whether or not the Coyotes will remain in Phoenix one more year. As there doesn’t seem to be any apparent buyer interested in purchasing the team and keeping it in Glendale, CoG Mayor Elaine Scruggs decided she had enough of the whole situation and decided to rant and rave about the NHL, Gary Bettman and Bill Daly.

“The reason why we approved that second payment of $25M to the NHL. Why 5 of us voted for this, was because we were told that we were just this close to a deal being done. Mr. Daly stood right in front of us and he told us that. “We have never been closer… There was a deal that was going to be done so we should never have to pay that $25M and the NHL wouldn’t go move the team off some place. So, here we are now, a year later, two months from having to pay this. No Mr. Hulsizer… No Mr. Anybody Else. No Deals, No Nothing. So we have a problem.”

“The NHL have been in control of this process the entire time. Everything had to start with them. We couldn’t do anything until they said that we could talk to somebody. The NHL have been in control of this and they have led us to this terrible point that we are at today.”

[troutman]

Originally Posted by Sidney Crosby's Hat

HOWEVER, I also think that any threat to move the team for next season by the NHL is a total bluff (Seattle and Quebec are not ready). I wouldn't be surprised if the NHL accepted the $11 million and ran the team in Phoenix one more year. Colisee should be ready for 2013-14 though.

They'll tack next year's losses onto the purchase price.

I've heard NHL people have already been inspecting the Colisee. The ground on the new arena is expected to be broken around Sept. 2nd.

[Regular_John]

Originally Posted by troutman

I've heard NHL people have already been inspecting the Colisee. The ground on the new arena is expected to be broken around Sept. 2nd.

Troutman, you seem to have been following this closer this season than I have, what's your gut prediction on how this plays out this year? NHL finally pulls the plug and moves to Quebec with a few seasons Colisée till the new building opens in 2015? Or do you see another season in the dessert?

[kyuss275]

Originally Posted by troutman

I've heard NHL people have already been inspecting the Colisee. The ground on the new arena is expected to be broken around Sept. 2nd.

I heard that they are ready to put $10 million into the Colisee for upgrade for next season. Colisee will be temp building until the new arena is finished.

With no new buyers in site for Phoenix, i think the NHL will announce the move after the playoffs.

Glendale is not going to be putting any more money into the sinking ship.

[automaton 3]

Originally Posted by troutman

City of Glendale - Budget Workshop transcript:

http://hfboards.hockeysfuture.com/sh...148345&page=12

I read through that transcript, pretty astounding that Scruggs appears to be just figuring out the terms of the escrow, and that $25M is not reflective of the actual cost to run the arena. I had to chuckle at the two councilmembers that voted no laying the boots to Scruggs.

Pretty clear that they feel badly lead astray by the NHL. "They told us the deal was this close to getting done".

Not exactly great publicity for the league. Cue the torches and pitchforks and the Coyotes being run out of town.

[valo403]

Originally Posted by automaton 3

I read through that transcript, pretty astounding that Scruggs appears to be just figuring out the terms of the escrow, and that $25M is not reflective of the actual cost to run the arena. I had to chuckle at the two councilmembers that voted no laying the boots to Scruggs.

Pretty clear that they feel badly lead astray by the NHL. "They told us the deal was this close to getting done".

Not exactly great publicity for the league. Cue the torches and pitchforks and the Coyotes being run out of town.

I always find it hilarious when people claim to have been 'lead astray' in one breath and then admit that they had no idea what they were committing to in the next. Perhaps you should familiarize yourself before signing, and you should definitely look into getting better counsel.

[automaton 3]

Originally Posted by valo403

I always find it hilarious when people claim to have been 'lead astray' in one breath and then admit that they had no idea what they were committing to in the next. Perhaps you should familiarize yourself before signing, and you should definitely look into getting better counsel.

Too true. I suspect that Scruggs knew more than she is letting on and is now engaging in damage control. Woe is us, the evil NHL sold us a bill of goods, ect.

[landshark]

Originally Posted by valo403

I always find it hilarious when people claim to have been 'lead astray' in one breath and then admit that they had no idea what they were committing to in the next. Perhaps you should familiarize yourself before signing, and you should definitely look into getting better counsel.

Well, OF COURSE they are gonna say that the NHL lied about the whole process. It couldn't possibly be the fault of those that voted for the agreement. Let's not forget that many people see a city council as a stepping stone to higher office. No higher office for you if your stepping stone is a disaster.

This is business folks. BIG business. There are 100s of $1,000,000s at stake. You can be sure that savvy tycoons are gonna get a government agency to cover as much of the costs as is conceivable. Glendale is clearly in distress - capitalist barracudas thrive on taking advantage of fiscal operations that are in distress.

I hope every municipality on the continent is watching closely. This is the risk they take when they decide to 'attract' business by providing freebies. Business will take every freebie offered and tell you that it isn't enough to make a go of it. Only after they have squeezed every last $ will they begin. The idea that you can force a team to stay put for 30 years by getting a signed agreement is preposterous. Even if it wasn't PHO, ANY large complicated business organization (like an NHL ownership group) can rearrange itself to appear to be a losing entity - and they will do just that if they see a better opportunity in another community. They will demand new concessions from the municipality while opening negotiations with another city WHILE appealing to the fans that there is nothing they can do without the help of government.

Stand fast Alberta! I know that EDM and CGY are trying to get new arenas. Barracudas are salivating...

[Toonage]

I am prepared to welcome our Saskatoon Coyotes

[TKB]

Originally Posted by Toonage

I am prepared to welcome our Saskatoon Coyotes

I would hope that wouldn't even be a option. Nothing like moving from one failure to another.

[troutman]

Glendale mayor blames NHL, city administrators for unresolved Phoenix Coyotes sale

http://www.azcentral.com/community/g...-sale-brk.html

The league, which purchased the Phoenix Coyotes at a bankruptcy court auction in 2009, has been managing the team and city-owned arena until an owner willing to keep the team in Glendale can be found. The city paid $25 million to the NHL during the 2010-11 season and pledged another $25 million for the current season, which is expected to come due in May.

To fulfill that pledge, the city put $20 million in escrow and still needs to come up with $5 million.

The hefty payouts have nearly drained the city's reserves, leading to a recent drop in the city's bond rating.
And the city is looking at a deficit next fiscal year that one councilwoman has estimated could reach $30 million. A possible sales-tax hike, furloughs and program cuts are on the table to close the spending gap.

Scruggs said the NHL last spring "misled us and they can't do this to our city."

She added, "I don't know if they will charge me with slander. This is how I feel. How long have we fiddled around with these people ... four years?"

City Manager Ed Beasley said he took the mayor's request for a payment plan, which she first mentioned in February, to Bettman. The commissioner is taking it under advisement and "will consider what he will do at the right time," Beasley said.

Deputy Commissioner Daly has not yet responded to The Republic's questions on the mayor's request.

Daly continues to say the NHL is committed to keeping the Coyotes in Glendale despite other cities interest in hosting the team.

[Northendzone]

To me this whole fiasco outlines why government should not get in bed with professional sports teams. What a mess. If the CoG winds up underwriting one more year of losses, they may as well look at buying the team.

On the other hand, I assume that any day now Jerry reinsdorf will provide the NHL with his real bid, because he remains interested......

[Resolute 14]

And now Glendale moves into full-on damage control mode. Must be an election soon. "They swindled us, it's not our fault. Vote for me!"

They are definitely trying to set up the NHL as the bad guy, as I am sure the ongoing loss on that arena will post annually will be a long-term headache for future councils.

[valo403]

Originally Posted by Northendzone

To me this whole fiasco outlines why government should not get in bed with professional sports teams. What a mess. If the CoG winds up underwriting one more year of losses, they may as well look at buying the team.

On the other hand, I assume that any day now Jerry reinsdorf will provide the NHL with his real bid, because he remains interested......

You really need to come up with some new material

[Northendzone]

Originally Posted by valo403

You really need to come up with some new material

I just keep transmitting the message that I hear.......

There was a humorous article in the globe and mail today, indicating that the CoG wants to retrieve it's $20 million from escrow. See,
Ms they are having a budget shortfall issue.