The Ongoing Coyotes Sale Thread

[Sidney Crosby's Hat]

Originally Posted by Cowperson

I agree. Goldwater really looks like its stumped.

It's either go for the whole enchilada - winning the principle the city couldn't legally sign the deal - or get lost since anything less than total victory costs taxpayers $100 million.

And the more I think about it, the more it looks like the poison pill was designed for exactly that all or nothing purpose.

Goldwater = gnats.

Cowperson

Except, at the current interest rate (8%) and the threat of litigation, it is impossible to sell these bonds and Goldwater knows that.

Glendale needs to find a plan B and fast because these bonds aren't selling.

[Dogbert]

Originally Posted by fokkerfan

After reading the following it looks like he is getting the franchise for free:
http://goldwaterinstitute.org/article/5741

He is. Glendale is essentially bending over and asking Hulsizer to be gentle so they won't have a fancy new arena without a tenant.

[Cecil Terwilliger]

THE Goldwater Institute called Matthew Hulsizer's bluff on Monday and no imminent resolution appears upcoming in the ongoing saga of the Phoenix Coyotes sale.

"Moody's and S&P both already downgraded Glendale's general bonds due to excessively high levels of debt. Any investor with a head on his shoulders should be nervous about buying bonds to back a corporate subsidy that appears to be an illegal deal in violation of the Arizona constitution," said Olsen, in an email to the Free Press.

http://www.winnipegfreepress.com/spo...117135928.html

[valo403]

Originally Posted by Sidney Crosby's Hat

Except, at the current interest rate (8%) and the threat of litigation, it is impossible to sell these bonds and Goldwater knows that.

Glendale needs to find a plan B and fast because these bonds aren't selling.

You missed the point. Goldwater's involvement has all but guaranteed that the taxpayers lose $100mil+ with next to no chance of recouping the loss. Great tax payer advocacy there, not that I expected anything more after looking at some of the people involved with the group.

[PegCityFlamesFan]

You missed the point. Goldwater's involvement has all but guaranteed that the taxpayers lose $100mil+ with next to no chance of recouping the loss. Great tax payer advocacy there, not that I expected anything more after looking at some of the people involved with the group.

GWI knows that they can just threaten a lawsuit and it will force the bonds to plummit more, leaving the likelyhood of the COG giving up. Coyotes fans may hate GWI but the 90% rest of the population won't even notice.

[fokkerfan]

Wouldn't everyone in Glendale be better off finding new ways to fill the 41 dates a year?

[valo403]

Originally Posted by PegCityFlamesFan

GWI knows that they can just threaten a lawsuit and it will force the bonds to plummit more, leaving the likelyhood of the COG giving up. Coyotes fans may hate GWI but the 90% rest of the population won't even notice.

Due to apathy that's probably correct, but the fact remains that Goldwater's actions do more to guarantee a $100mil loss for Glendale than the subsidies to Hulsizer ever would have. At least with the altter scenario there's a potential to recoup the loss, and potentially profit. As is the loss is guaranteed and virtually unrecoverable. The net result is bad for everyone, except of course that courageous bunch over at Goldwater.

[valo403]

Originally Posted by fokkerfan

Wouldn't everyone in Glendale be better off finding new ways to fill the 41 dates a year?

Such as?

[fokkerfan]

I dunno, Monster Trucks, Justin Bieber, an AHL team? Parking costs would probably be the same as it doesn't seem to matter what the event is at the saddledome. It's always the same cost.

[valo403]

Originally Posted by fokkerfan

I dunno, Monster Trucks, Justin Bieber, an AHL team? Parking costs would probably be the same as it doesn't seem to matter what the event is at the saddledome. It's always the same cost.

So it's your opinion that there are an unlimited supply of events just waiting to be in the Jobing.com arena (it's still called that, right?) and if the Coyotes were to leave those 41 dates would be easily filled? Okay

[fokkerfan]

No, all I said was maybe they should start looking for other events.

[valo403]

Originally Posted by fokkerfan

No, all I said was maybe they should start looking for other events.

And that's my point, there's a reason that arena's want anchor tenants like professional sports franchises, other events don't come by all that frequently. Sure you could fill a few of those dates, but you aren't going to be able to offset 41 dates by amping up your monster truck shows. The Phoenix market is especially tough in that there's another arena to compete with for these alternate events.

[automaton 3]

Originally Posted by valo403

Such as?

Honestly, good question. Concerts and tractor pulls I suppose, but would they be in competition with the US Airways Arena for those events?

At the end of the day it comes back to the original decision to build an 17,000+ seat arena in a city about the same size as Saskatoon. Granted a major market, population and fan base is nearby in the Phoenix area, but consumers vote with their feet. This venue simply might not be viable, new ownership/marketing plan or not.

[PegCityFlamesFan]

I know the trade deadline is over but:

To Phoenix:
Manitoba Moose
Goldenboy Statue
Naming rights to Salsbury House

To Winnipeg:
Phoenix Coyotes

[PeteMoss]

Do the Suns have an ownership stack in the US Airways Arena?

I've gone to a Suns game and the arena really isn't that nice. The Suns owner is extremely cheap as well... you'd think you could easily convince him to move if it'd earn him some dollars.

[BACKCHECK!!!]

[Lester]

So far as I can tell, GWI is holding up the sale of the Coyotes just fine doing nothing but threaten to sue if they put the deal thru. GWI doesn't have to do anything... they've successfully raised the interest rate and made the deal even worse for Glendale residents to the tune of 100 million+. Also, the NHL has stated it wont allow the deal to go thru if GWI sues. But GWI wont commit to that until the the city commits to the deal. It's like a game of chicken.

The question is how long will the NHL wait? The schedules have to be made within a few months for next year. I don't think the NHL will want to run the Yotes for another season so I think a realistic drop dead date would be around 2 to 3 months (tops) from now. And that's literally taking it up the razors edge.

This sounds like a headache and a half for the league frankly

[Stats87]

How much are they going to charge for parking, or what was the proposed number? I heard $20 a couple times but wasn't sure if that was legit.

[Lester]

the parking study shows that when they charge for parking (its free now) they estimate to BREAK even with 6% interest on bonds. There are other studies that show they lose money.

change the interest rate to 9%, what it is now, and it violates the gift clause. pure and simple. its a real mess for the city council. I've been reading the Glendale Republic online and it seems that the site is over run with Canadians and furious Glendale residents, and a token few Coyote fans who don't seem to care how much money the city has to pay to keep them around. They're arguing for overall impact on the city, while the others are arguing against the huge loans.

[Jets4Life]

Originally Posted by fokkerfan

Wouldn't everyone in Glendale be better off finding new ways to fill the 41 dates a year?

By moving them to Winnipeg?