Possible, that part was always a little fishy. The Coyotes aren't a direct competitor to the D-Backs but one less entertainment option wouldn't hurt them.
The thing is professional sports rely on government money in the form of providing facilities etc., baseball too. Baseball doesn't want to see this bonanza go down the drain, so they could tell the GWI to back off and don't set any precedents.
If I had my way I'd force the NHL to make an arena fund to finance their future facilities. It won't happen as they'd have to take the money out of the players share and they'd scream to high heaven and the league don't want it as they wish to continue blackmailing governments to finance their arenas.
Probably in this thread somewhere, but do you have a short explanation of what GWI is? I always hear about it but have never taken the time to look into it.
They are something of an organizational equivalent to Paul Bissonnette: They talk a lot but ultimately spend more time sitting uselessly on the sidelines.
The thing is professional sports rely on government money in the form of providing facilities etc., baseball too. Baseball doesn't want to see this bonanza go down the drain, so they could tell the GWI to back off and don't set any precedents.
If I had my way I'd force the NHL to make an arena fund to finance their future facilities. It won't happen as they'd have to take the money out of the players share and they'd scream to high heaven and the league don't want it as they wish to continue blackmailing governments to finance their arenas.
Sure, but the D-Backs already have theirs, existing ownership could certainly see the elimination of a competitor as a benefit.
in a way this really cracks me up as for years, some people in rural Manitoba claimed they would not go to Jets games because they were the Winnipeg Jets not the Manitoba Jets.
Seems to me that there is really more stopping you than just the name, but the name is a convienent excuse......
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Sure, but the D-Backs already have theirs, existing ownership could certainly see the elimination of a competitor as a benefit.
Just as the bankruptcy was bigger than just hockey and the Coyotes, this is bigger than just the D-Backs. Government subsidies (besides providing the facility) in the form of facility operating costs are the way of doing business. Baseball and the other pro sports don't want the D-Backs and the GWI interfering with this golden egg.
Even Katz wants another $6M annual subsidy to offset arena operating costs.
Just as the bankruptcy was bigger than just hockey and the Coyotes, this is bigger than just the D-Backs. Government subsidies (besides providing the facility) in the form of facility operating costs are the way of doing business. Baseball and the other pro sports don't want the D-Backs and the GWI interfering with this golden egg.
Even Katz wants another $6M annual subsidy to offset arena operating costs.
None of this is news to anyone, but the fact is this particular situation involves direct conflicts of interest, which could have easily driven the agenda GWI was pressing, along with the whole Tea Party ideal. As I said, the D-backs have their deals, they've already claimed their golden egg, keeping other hands out of the jar while they reap the benefits is certainly not out of the realm of possibility.
That said, I'd say more than anything the apparent unwillingness to take action here comes more from a relatively weak legal team at GWI and a deal that was crafted specifically to thwart the few avenues they have utilized to challenge deals in the past.
That said, I'd say more than anything the apparent unwillingness to take action here comes more from a relatively weak legal team at GWI and a deal that was crafted specifically to thwart the few avenues they have utilized to challenge deals in the past.
We don't know what GWI is willing to do. They have said that there is nothing they can do, until there is a deal.
Seems to me it would be an interesting case. There clearly seems to be a subsidy to Jamison, but from what I understand of the law, this can be justified if more money would be lost by the City without it. I'm not sure COG has really established that, and relied on some shaky financial reports.
We don't know what GWI is willing to do. They have said that there is nothing they can do, until there is a deal.
Seems to me it would be an interesting case. There clearly seems to be a subsidy to Jamison, but from what I understand of the law, this can be justified if more money would be lost by the City without it. I'm not sure COG has really established that, and relied on some shaky financial reports.
I think GWI has shown their hand already, and they now face a deal specifically crafted to beat that hand. I don't have much faith in their ability to maneuver around that, partially based on what I perceive to be their true purpose (political posturing) and partially from having dealt with people from this realm of the legal profession (quasi lawyers, but mostly politically driven). It seems like it would be too much of a fight for them to get involved with. But you never know, they have certainly been a wildcard all along.
We don't know what GWI is willing to do. They have said that there is nothing they can do, until there is a deal.
Seems to me it would be an interesting case. There clearly seems to be a subsidy to Jamison, but from what I understand of the law, this can be justified if more money would be lost by the City without it. I'm not sure COG has really established that, and relied on some shaky financial reports.
The city just approved the lease. I am not certain what is stopping them from attacking that vote.
I won't even pretend to know the ins and outs of the Arizona State Constitution, but the layman's arguments of "OMGZ GIFT CLAUSE" is based on the idea that "If the city gives anyone money, it's illegal". But that doesn't stand up to logic. Logically, I would expect that Goldwater, or anyone else, would have to convince a judge/jury that the amount of money being given exceeds what could be considered reasonable under the circumstances.
Now, an eight figure payment to manage the arena may seem unreasonable at first blush, but when you consider the city is betting they will still make more money with the deal than without - both in direct revenue from having a major anchor tenant and an owner/operator motivated to bring in more events, and from increased tax revenue by bringing out of town people in for these events - I think you could make reasonable case that the AMF is not excessive to the point of running afoul of that law.
It is a hugely risky bet, and one that may well fail given the history of the team in Glendale, but I agree with Valo that Goldwater's silence is a sign that they've been outmaneuvered here and don't want to spend the resources needed to reposition for a new fight. I think further opposition will come from the community level rather than from professional political activists.
Depends on how many people he can get to help him collect them. If it's just him then no chance in hell... but if he can get say 30 people to help that's just 8 signatures per person per day. Easily done with the right organization.
Depends on how many people he can get to help him collect them. If it's just him then no chance in hell... but if he can get say 30 people to help that's just 8 signatures per person per day. Easily done with the right organization.
It's him and some old ass lady with no goldwater or financial backing.. Not a chance in hell.
But I respect him exercising his right to do so, and he is entitled to try.
Moody's downgrades Glendale, AZ's G.O. rating to A2, senior excise rating to A2, subordinate excise to A3, transit excise rating to A2, street and highway rating to A2; outlook is negative; water and sewer ratings downgraded to A1 and outlook is stable
The downgrade of the city's unlimited tax G.O. rating to A2 primarily reflects high exposure to enterprise risk and related deterioration of the city's financial position driven by payments to the National Hockey League (NHL) for operating losses of the Phoenix Coyotes; this led to significant declines in general fund reserves in fiscal years 2011 and 2012. The downgrade also reflects continued though moderating declines in the city's tax base and economy driven by the effects of a broad housing downturn and a recessionary environment expected to realize a slow recovery. Additionally, the downgrade reflects volatility in economically-sensitive excise tax revenues that are the general fund's largest operating resources, and a high debt burden that includes significant leveraging of excise taxes to support sports facilities with revenues that would otherwise be available for general operations.
The rating outlook on the city remains negative and reflects Moody's expectation that the city will remain challenged to balance its budget over the medium-term given an expected slow economic recovery and a high level of fixed costs. Importantly, the city's recently implemented five-year increase in the city's general sales tax rate to 1.9% from 1.2% will provide significant additional operating revenues to the general fund until fiscal 2017; however, it is expected that management will still need to implement additional and politically challenging measures in an effort to reduce annual operating deficits and achieve long-term fiscal balance that will require action over several years. Additionally, on November 27, 2012 the city council approved a Jobing.com Arena agreement that would require the city to pay management fees annually for at least the next twenty years that are expected to pressure the city's general fund performance, though arena management payments would be substantially reduced relative to arena payments from fiscal years 2011 and 2012.
CHALLENGES
- A substantially weak financial position compared to rated peers
- Repayment of sizable long-term loans from several enterprise funds to the general fund that supported payments owed to the NHL
- Commitment to fund substantial long-term payments to the prospective buyer group of the NHL's Phoenix Coyotes for managing the city-owned and financed Jobing.com Arena
Not surprising at all. It's interesting that while the situation with the NHL is obviously a drag Moody's also notes that there is an eroding tax base and a high debt burden, some of which is certainly arena related. To me that says that this would have happened regardless of the NHL being present, and that the attempts to keep the team there are based around a (quite possibly misguided) belief that they can stabilize the situation, or possibly bring people to the area to bump revenues. Overall I think it's safe to say that you probably shouldn't be looking to hire anyone involved with the City of Glendale as your financial planner.
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