General Ongoing Coyotes saga thread

[valo403]

Originally Posted by Sidney Crosby's Hat

You would think that they'd have a case considering that there are actual bids on the table for $6 million to manage the rink.

They may have a case, but they don't seem to have very much interest in doing anything but political posturing.

[Resolute 14]

Originally Posted by Sidney Crosby's Hat

You would think that they'd have a case considering that there are actual bids on the table for $6 million to manage the rink.

If they had a case now, they had a case when the city "gifted" the NHL $50 million for two years. If they were going to sue now, they would have sued then. I'm not saying they are right or wrong, merely that the only thing Goldwater seems interested in doing is to get Goldwater into the headlines.

[Sport Psych]

Originally Posted by troutman

All of this goes away if Bettman lowers the price. There are local, hockey-loving people in this Valley who will buy the team for $140 million and ensure stability for years to come. Bettman isn't interested in years to come. Glendale must stand its ground. Just because Bettman wants his money doesn't mean Glendale should pay off the new ownership group. Bettman can have his sale price for a long-term lease or he should allow a different ownership group to buy it cheaper on a short-term lease.

This is a bit disingenuous. I'd say Bettman has gone above and beyond to: (a) keep this team in Glendale for the long haul, and (b) attempt to keep franchise prices as high as is practicable for the good of the entire league.

I can't disagree with much of the rest of the article, though.

[troutman]

Originally Posted by Sidney Crosby's Hat

You would think that they'd have a case considering that there are actual bids on the table for $6 million to manage the rink.

I think the defence that COG would make is that the City would lose more $ if they didn't pay, so therefore it is not a subsidy. I'm not sure they are better off with the Coyotes.

[troutman]

Glendale may leverage City Hall


http://www.azcentral.com/community/g...city-hall.html

Glendale leaders are considering using City Hall as collateral to borrow $30 million to help pay off other loans the city gave itself to cover sports-related debt.

The City Council is expected to vote on the matter today.

The proposed loan is separate from discussions city officials are having with the potential new Phoenix Coyotes owners to manage Jobing.com Arena.

The debt the city seeks to repay goes back to two $25 million commitments the city made to the National Hockey League to operate the arena in fiscal 2011 and 2012, said Diane Goke, the city’s chief financial officer.

Glendale borrowed $45 million largely from its own enterprise funds, which are self-sustaining funds for such services as water and sewer and are separate from the city’s general fund.

If the council approves the plan, city officials will seek outside investors to lease back the City Hall complex for 20 years by making a one-time, up-front payment of $30 million.

“It’s a sad thing to have a city hall that’s paid for and we have to use it as collateral to pay the money that we’ve given the NHL, because that’s where it’s going,” Hugh said.

[troutman]

City Hall, escrow account come into play in Coyotes saga
http://www.foxsportsarizona.com/nhl/...79&feedID=3702

If the RSE deal fails and the Coyotes relocate, the NHL would require Glendale to repay the entire $25 million immediately.

[Resolute 14]

Oh, nice turn of the screws there. "Vote our way, or else."

[valo403]

Well it's not exactly like that was a term that was just thrown onto those funds this morning, they entered into the deal fully aware of the conditions on the funds. I mean the NHL had been doing them a favor, requiring the payment would simply be treating them by the terms of the deal.

[troutman]

NHL willing to give Glendale 5 years to pay off $25M owed for Coyotes arena deal


http://www.bizjournals.com/phoenix/n...e-5-years.html

[Jordan!]

annnnnd Boom goes the dynamite

[seattleflamer]

Originally Posted by Bouw N Arrow

annnnnd Boom goes the dynamite

Based on what has been leaked, do you still think it is 4-3 vote "FOR" after this brief public comment phase?

[Jordan!]

Originally Posted by seattleflamer

Based on what has been leaked, do you still think it is 4-3 vote "FOR" after this brief public comment phase?

I see that staying the same with the possibility of Ian Hugh being the 5th yes vote.

[Resolute 14]

Originally Posted by valo403

Well it's not exactly like that was a term that was just thrown onto those funds this morning, they entered into the deal fully aware of the conditions on the funds. I mean the NHL had been doing them a favor, requiring the payment would simply be treating them by the terms of the deal.

No, but as Troutman's other story notes, the difference between paying $25 million off over several years vs. paying it off tomorrow adds pressure to cave. For as crazy as it is that this is still going on, one of the more consistent aspects of this entire saga is how Bettman has manipulated the city.

[troutman]

Joyce Clark:

http://joyceclarkunfiltered.com/city...-meetingswhew/

It has been reported that the details of the bid may be released on Wednesday, June 25th. The only reason for this meeting is because RSE and the city (COG) are still negotiating the terms of the deal. There would only be two outcomes: 1. the council has accepted the terms and is comfortable with them or 2. the council still has issues with the final terms. Either way, this council has signaled that it is ready to put this issue to bed and vote on it on July 2nd. Keep in mind that just because the RSE bid has finally made it to a voting meeting does not insure a positive outcome. What it does signal is that the council is ready to vote, up or down, RSE’s bid and be done with the issue.

The finale of the Coyotes ownership RSE bid is still scheduled for July 2, 2013. Are there 4 affirmative votes? Only the councilmembers know or think they know. If RSE still wants $15M a year as the management fee and cannot or will not guarantee a minimum of $9M in “enhanced revenue streams” to the city this council may find it a difficult deal to swallow. Are we about to experience deju vu? The very mechanics of the deal could cause the Goldwater Institute to reappear. I suspect they are watching very, very closely. Then there is Ken Jones and his ilk who absolutely hate anything Coyote related. Could they mount another referendum drive? Yes, they could and would just to stall the deal. After all, how long will Fortress Investment Group leave an open-ended loan available to RSE?

[valo403]

Originally Posted by Resolute 14

No, but as Troutman's other story notes, the difference between paying $25 million off over several years vs. paying it off tomorrow adds pressure to cave. For as crazy as it is that this is still going on, one of the more consistent aspects of this entire saga is how Bettman has manipulated the city.

Manipulated? By doing them the favor of not acting upon terms the NHL could have acted on for a few years? I'd love it if counterparties to my deals were so manipulative as to not enforce terms that were in their favor for a significant period of time. Glendale should have been prepared to pay that entire sum on the date the terms called for it to be paid, not to be given different terms down the road. If that didn't happen it's on them. Allowing the concession while a team is still in Glendale makes sense, the NHL is still in the market and the concession benefits an existing partner. Allowing a concession if the NHL has no presence in Glendale is simply giving money away.

[Resolute 14]

Come now Valo, surely you understand the implications of the league saying "If the team leaves, we'll demand you pay it all now, but if the team stays, we can defer payments over an extended period." Yes, the city has to pay it regardless, and league could demand that it all be paid now anyway. But it is clearly offering a carrot to entice council to vote in favour, as well as a threat of immediate punishment if it does not.

[valo403]

Originally Posted by Resolute 14

Come now Valo, surely you understand the implications of the league saying "If the team leaves, we'll demand you pay it all now, but if the team stays, we can defer payments over an extended period." Yes, the city has to pay it regardless, and league could demand that it all be paid now anyway. But it is clearly offering a carrot to entice council to vote in favour, as well as a threat of immediate punishment if it does not.

Of course I understand the implications, that has nothing to do with my posts. Glendale entered into this arrangement with full knowledge of the structure, there's nothing here that's even close to manipulation. If Glendale chooses not to remain a partner of the NHL then the incentive to not fully enforce that deal as agreed to goes away, just as it would when any other business relationship ends. I haven't heard any of this from Glendale itself, but it seems that people expect the NHL to treat this as if they're dealing with a charity rather than as the business relationship that it is.

[oldschoolcalgary]

Is this still going on!?

Laughable. Obviously, the only people that think the NHL is viable in Glendale is the BOG...it's madness!

[oldschoolcalgary]

Dbl,post

[troutman]

http://www.azcentral.com/community/g...nclick_check=1


Glendale City Council members emerged from a four-hour private session Tuesday saying they were still unable to settle on an arena deal worthy of bringing to a vote.

Council members are seeking more assurances from the prospective owners of the Phoenix Coyotes that hockey will be a money-making venture.

Councilwoman Norma Alvarez, a vocal opponent of spending for professional sports, called her colleges knuckleheads for continuing negotiations with Renaissance.

When asked to clarify her statement, Alvarez replied, “I called them knuckleheads, because they don’t get it. They don’t get it. They don’t get it. They’re going to continue discussions. Discussions of what? We’re selling City Hall because of paying $50 million. C’mon. C’mon.”