General Ongoing Coyotes saga thread

[Shin Pad]

I'm very happy that the Coyotes have a deal in place. I love going to games at Jobbing.com. Winters in Arizona just wouldn't be the same without the Coyotes.

[Tsawwassen]

Originally Posted by hwy19man

Not quite. On Monday night, "the prospective owners of the Phoenix Coyotes have signed their lease agreement for Jobing.com Arena."

There are still things that need to be completed, but, the article goes on to say that those will be formalities.

Safe to say all that will be done on a Monday.

[Resolute 14]

Originally Posted by TurnedTheCorner

Why is this thread still going? The saga is over.

Because people like you keep posting in it?

It's a big internet. Feel free to visit a different part of it then.

[BACKCHECK!!!]

Originally Posted by TurnedTheCorner

Why is this thread still going? The saga is over.

You *honestly* think this is the absolute last we ever hear about the Coyotes potentially moving and/or being sold?

[nfotiu]

Originally Posted by valo403

I've wondered about this, does NBC look at presence in Phoenix and assign points even though the ratings are so low? I mean sure Phoenix is a huge market, but do they count it as one when nobody is watching? My guess is that it's somewhere in the middle, the acknowledge the potential viewers but also deduct for the actual market penetration. I'll have to ask a friend in ad sales if he knows how things like that might be viewed.

NBC ad sales with Phoenix or without for hockey are pretty much just pennies to them. The only real money is in the NBC sports net carriage fees. If there are 2-3 million cable and satellite subscribers, they are looking at probably 20-40 million per year in carriage fees from Arizona for NBC Sportsnet, whose flagship program is hockey. ESPN probably rakes in over 200 million/year in carriage fees from Arizona. If national TV is any factor in all of this (keep in mind that the national tv deal is only about 7 million a team, and I can't see that changing one way or the other by more than a few hundred thousand with or without PHoenix), NBC would see its potential in growing that carriage fee closer to ESPN across the country because that's where the real money is at the moment.

[troutman]

http://goldwaterinstitute.org/blog/s...anagement-deal

STATEMENT OF GOLDWATER INSTITUTE ON GLENDALE-COYOTES DEAL

Based on the information available to us at this time, we do not believe that the Glendale arena management deal would be held unconstitutional. Changes made to the agreement during the course of negotiations partially bridged the gap between the market cost of arena management and the amount of the payment to the team owner, thus bringing the deal into conformity with cases interpreting the Gift Clause of the Arizona Constitution.

The initial deal proposed several years ago would have included not only a substantial annual arena management fee, but a $100 million up-front payment to subsidize the purchase of the team. We are proud to have played a constructive role in protecting the taxpayers and taking an illegal deal off the table.

Glendale’s long and painful experience illustrates why local governments should focus on providing basic and essential public services and avoid the temptation to subsidize private enterprises such as sports teams.

Craig Morgan ‏@cmorganfoxaz
Another major hurdle has been crossed for the #Coyotes' future in Glendale. Still to come: potential referendums/citizen-backed challenges?

[troutman]

Shoalts: New Coyotes owner bought in when revenue-sharing model changed


http://www.theglobeandmail.com/sport...ticle13130564/

Gosbee and his partners scored another revenue boost when NHL commissioner Gary Bettman decreed the Coyotes would always receive a full share of the league’s revenue-sharing plan, which is as much as $20-million (all currency U.S.) a year. Every other NHL club has to meet revenue and ticket-sales targets or its share is docked. Add the $15-million a year to manage Jobing.com Arena in a 15-year lease coughed up by Glendale, and Gosbee could see the possibility of at least breaking even.

However, despite the blue-chip list of investors, the group has just $45-million in equity in the Coyotes. It does have about $245-million raised, but most of it is borrowed, with the NHL lending $80-million and $120-million coming from Fortress Investment Group LLC.

While an NHL source said Gosbee is responsible for $35-million of the $45-million, with the other nine partners in for much smaller amounts, he said it is divided evenly among the group – although it does have two tiers of investors. He also said there is still considerable risk for the partners.

“I think people still confuse equity with not having risk,” Gosbee said. “We have significant risk with the fact we were able to leverage and borrow some cash. What also makes this unique is we will have $70[-million] to $80-million in cash on Day 1 to turn around the operation.”

Gosbee and his partners have an escape clause from their lease after five years or a cumulative $50-million in losses. At the same time, they do not have to pay the principal on the NHL loan until five years has passed. That just happens to be the time period when arenas in Seattle, Quebec City and perhaps Las Vegas will be ready.

But Gosbee points out he and several of his partners already have homes in Arizona and did not get into this to move the team.

“We’re not focusing on that,” he said. “The five-year window is just so that if it is not working, we need to look at our options. As owners, we want to remain.”

[Fire]

So in 5 years they are re-locating to Markham, Quebec or Seattle?

[Northendzone]

sounds like Gosbee is the MacGuyver of financing........#ricketydeal

[Brannigans Law]

Originally Posted by Fire

So in 5 years they are re-locating to Markham, Quebec or Seattle?

It's hard to imagine that in 2020 the Coyotes will be in Phoenix. But for the time being it's another great place to check out Flames game on holiday and enjoy some sun.

I wonder what the chances of the team losing 50 million before 5 years is up?

[Resolute 14]

Wow, totally shocked that Goldwater wasn't interested in getting dirty with a court challenge.

[troutman]

http://www.bizjournals.com/phoenix/m...dale-over.html

RSE attorney Nick Wood welcomed the Goldwater’s group decision not to sue.

“We have a great deal of respect for the Goldwater Institute. When structuring this deal with the City of Glendale, we were always mindful of the gift clause concerns expressed by the Goldwater Institute in previous Coyote related proposals,” said Wood, a prominent Phoenix attorney with the Snell & Wilmer LLP law firm. “We felt that Goldwater’s prior concerns were legitimate and that we should address those concerns within the framework on this deal.”

[valo403]

Originally Posted by troutman

http://www.bizjournals.com/phoenix/m...dale-over.html

RSE attorney Nick Wood welcomed the Goldwater’s group decision not to sue.

“We have a great deal of respect for the Goldwater Institute. When structuring this deal with the City of Glendale, we were always mindful of the gift clause concerns expressed by the Goldwater Institute in previous Coyote related proposals,” said Wood, a prominent Phoenix attorney with the Snell & Wilmer LLP law firm. “We felt that Goldwater’s prior concerns were legitimate and that we should address those concerns within the framework on this deal.”

Gotta hand it to Goldwater, they did a heck of a job of being a big enough trouble maker to have their voice heard without going to court. I'm still not a fan of them, but I'm willing to give credit where it's due.

[troutman]

http://www.csnnw.com/blog/dwight/tra...ng-nhl-coyotes

According to a highly placed Portland Trail Blazer source, the Blazers were closely monitoring the situation, had been in discussions with the NHL and were ready to make an offer for the franchise in order to move it to Portland's Rose Garden, if the lease in Glendale didn't work out. The interest by the Blazers was considered serious, by the team and the NHL, with much time spent on financial analysis and projections. It is believed the team could consolidate several of its operations to serve both basketball and hockey while adding another full-time tenant for the arena.

Trail Blazer owner Paul Allen was said to be fully on board with the acquisition of the team, as long as the price and terms made financial sense.

[Jordan!]

Portland would be better suited than Seattle. The Rose Garden was almost home to the Calgary Flames in 2000.

[troutman]

http://nebulousverbosity.com/coyotes-rumor-roundup-4/

July 16, 2013

Including today, there are 17 days remaining until the deadline for submission of petition signatures to the City of Glendale.

Ken Jones’ signature gathering partner was hanging at Foothills Library reading a paper this morning.

I believe Jones requires over 10,000 (?) signatures, so this seems unlikely.

Also, I think RSE has to close by August 4th?

[MisterJoji]

Just when you thought the sun was beginning to set on this debacle ... from Michael Sunnucks of the Phoenix Business Journal:

Renaissance Sports and Entertainment — the group of business executives and oilmen from Canada and Texas who aim to buy the Coyotes — has until Monday, Aug. 5, to finalize its purchase of the team from the National Hockey League. The Monday deadline is part of the city of Glendale’s 15-year, $225 million arena deal that enables Renaissance and its Ice Arizona entities to secure financing and keep the team in Arizona. But two sources familiar with the Coyotes deal say some financing for the sale has either not been finalized or has dropped out of the deal. One local business executive said prospective owners are meeting with financiers and the NHL on the matter. It is not clear how serious the financing issues maybe for RSE and its investors."

[nik-]

Of course.

[Beatle17]

"One local business executive said prospective owners are meeting with financiers and the NHL on the matter. It is not clear how serious the financing issues maybe for RSE and its investors."

Who is the local business owner, and what does he know about the financing of the deal? If he is a legitimate source then its time to let them die in the desert, if he is some local shoe store owner then he is no better source than any of us are.

[Brannigans Law]

Dear jesus are you kidding me? This isn't over? What happens Aug 5? Another 10 months of this nonsense?