Ongoing Arizona Coyotes arena saga: Arena land auction June 27

[Sidney Crosby's Hat]

Originally Posted by dissentowner

I still think the only smart play here is regardless on if they win the bid they need to relocate the team after next year. Arizona can be at the top of the expansion list but even if they win the bid they are 3-4 years at minimum from getting the arena finished. So are the other owners in a revenue sharing league ok with a team playing in a 4000 person arena for possibly another 4 years? It makes no sense. The league would be much smarter to pivot to SLC and then when the arena is ready in Arizona you open up expansion again.

I don't think Meruelo has the money for an expansion team (though I'm also guessing the NHL would be perfectly fine with a totally different owner, but if Meruelo owns that land you're tied to him a bit).

My personal theory is Meruelo is just delaying and delaying because he knows the longer he waits, the more the franchise value is going up since franchise values are booming. If he sold this team two years ago, for example, he's probably getting $400 million but now it's probably upwards of $700 million. Then Salt Lake would likely top it up with a relocation fee that makes it $1 billion.

[Jay Random]

Originally Posted by Sidney Crosby's Hat

If he sold this team two years ago, for example, he's probably getting $400 million but now it's probably upwards of $700 million. Then Salt Lake would likely top it up with a relocation fee that makes it $1 billion.

The existing owner doesn't get the relocation fee. The league does.

[Zary's-Mustache]

Originally Posted by White Out 403

Let's check in this post in a few years and see how it holds up

All depends if they start winning. That will bring the fans surely.

[topfiverecords]

Originally Posted by Zary's-Mustache

All depends if they start winning. That will bring the fans surely.

Like 44-19-5 kind of winning?

[Zary's-Mustache]

Originally Posted by topfiverecords

Like 44-19-5 kind of winning?

Yes that was my point haha.

[Jordan!]

Originally Posted by Sidney Crosby's Hat

I don't think Meruelo has the money for an expansion team (though I'm also guessing the NHL would be perfectly fine with a totally different owner, but if Meruelo owns that land you're tied to him a bit).

My personal theory is Meruelo is just delaying and delaying because he knows the longer he waits, the more the franchise value is going up since franchise values are booming. If he sold this team two years ago, for example, he's probably getting $400 million but now it's probably upwards of $700 million. Then Salt Lake would likely top it up with a relocation fee that makes it $1 billion.

Suns owner recently formed a Sports ownership parent company https://www.player15group.com

He will 100% get a crack at the Coyotes if Meruelo's Group can't secure this site

[Jay Random]

Originally Posted by Jordan!

Suns owner recently formed a Sports ownership parent company https://www.player15group.com

He will 100% get a crack at the Coyotes if Meruelo's Group can't secure this site

Does he even want to?

[Jordan!]

Originally Posted by Jay Random

Does he even want to?

He's being respectful to the process as the team isn't forsake but his spokespeople have said he's open to the conversation. Dude is from Michigan, wants to win in whatever he does, is already a sponsor of the Red Wings.

He created a parent company just for the purpose of owning teams, I'd say that's a good bet and I'd guess Gary Bettman has him as a speed-dial entry.

Throw them into Footprint Center until the lease ends in 2037 where he will need a new building. It's a better setup than the Delta Center in SLC and proven to work. They just need an ice plant

[dustygoon]

How is an organization with this reputation supposed to "win" this auction including approval for their development?

Eight vendors that worked with the team told The Athletic the Coyotes failed to pay their bills on time or had negotiated what they owed to a lower amount. For example, Paradigm Ventures Southwest, the team’s private airline charter, sued for breach of contract claiming the team owed them nearly $300,000. A longtime employee also sued the organization for wage theft.

Meruelo has also been sued for unpaid bills outside of the Coyotes. According to The Athletic, the SLS Las Vegas Resort and Casino he owned was sued by a public relations firm for not paying for the $22,000 worth of work it did.

According to the Phoenix Business Journal, a report from financial analytics company Dun and Bradstreet rated the Coyotes as having “high” delinquency and risk scores. Former Tempe City Councilwoman Lauren Kuby shared that report at a council meeting during negotiations last year.

Kuby says now that it doesn’t make sense to her that while a tenant who didn’t pay their bills would be evicted and have the eviction on their record for seven years, she sees the Tempe Entertainment District deal as letting the Coyotes off the hook.

“They have a terrible credit record, they don’t pay their bills, they don’t pay their rent,” Kuby said. “And the city is offering them this wonderful deal. And it’s just so ironic that the residents get shafted and the billionaire developer gets rewarded.”

https://coppercourier.com/2023/04/04...-alex-meruelo/

[Sidney Crosby's Hat]

Originally Posted by Jay Random

The existing owner doesn't get the relocation fee. The league does.

That's what I meant. $700 to Coyotes owner, $300 to NHL via relocation fee.

[Lanny_McDonald]

Originally Posted by Jordan!

Suns owner recently formed a Sports ownership parent company https://www.player15group.com

That's not what you're hoping for. This isn't like CSEC where they are going to dip into other pro sports. This is strictly for his basketball ventures. He's copying some of the other teams and creating this for the G league team he's trying to launch and manage it all under the same umbrella. No interest in hockey.

He will 100% get a crack at the Coyotes if Meruelo's Group can't secure this site

There is no indication of this in any form. Ishbia is a basketball guy. THat's where his interest is and I don't see hockey coming into play. The name Player 15 Game group comes from his time at Michigan State as a walk on and as the 15th man on the roster. He's never had interest in hockey and made the stadium the Suns play out incapable of hosting hockey. He would have to build a new arena and considering they just finished a huge renovation of the building they are in, that doesn't make any sense.

[TheScorpion]

I believe the renovations to remove ice capability from Footprint were spearheaded by Robert Sarver, not Ishbia

[Lanny_McDonald]

That's a minor point for argumentation but the same conditions apply. They bought a team and an arena they knew could not support certain events. Have either of the Ishbia's expressed interest in hockey or having interest to launch another renovation of the building that was just finished to put in place infrastructure they were well aware of being removed just before the sale closed? No. Not at all. Outside of Jordon connecting Suns owners to the Coyotes there has been zero smoke. Just the opposite actually. Ishbia stated last month that he has no interest in the Coyotes. Stop trying to make "fetch" happen.

[Strange Brew]

Seravalli speculates the NHL is looking at buying out Meruelo (keeping him whole on deficit incurred to date) and extracting relo fee from Smith in SLC. All in time for next year.

Just my view, but this auction is not really the make or break event. Buying some land is a far cry from getting an arena development financed and built. Meruelo can still go try and develop this land if he is so inclined.

[Geeoff]

The NHL could dissolve the Coyotes and do a dispersal draft for all their assets and then bring in a new Expansion team with the regular expansion draft rules and have their cake and eat it too

[getbak]

Originally Posted by Strange Brew

Seravalli speculates the NHL is looking at buying out Meruelo (keeping him whole on deficit incurred to date) and extracting relo fee from Smith in SLC. All in time for next year.

Just my view, but this auction is not really the make or break event. Buying some land is a far cry from getting an arena development financed and built. Meruelo can still go try and develop this land if he is so inclined.

That's been my guess for how this will play out too. Dangle the carrot for Meruelo to be front-of-the-line for expansion when/if he gets the arena built and expect to never hear from him again.

Realistically, at this point, even if he wins the land auction in June, the arena won't be ready until 2028 at the earliest. I doubt anyone wants them to play at ASU for another 4 seasons and 2028 is likely when the next round of expansion happens, so it would work out perfectly for them.

[dustygoon]

Originally Posted by Strange Brew

Seravalli speculates the NHL is looking at buying out Meruelo (keeping him whole on deficit incurred to date) and extracting relo fee from Smith in SLC. All in time for next year.

Just my view, but this auction is not really the make or break event. Buying some land is a far cry from getting an arena development financed and built. Meruelo can still go try and develop this land if he is so inclined.

I see this as likely. There is no way that original purchase agreement from when Meruelo bought the team allowed him to recoup investment AND benefit on value uplift across league or get any relocation fee himself.

The league and owners who footed the bills for so long are going to want to keep gains to recoup the losses incurred over the years.

[Jordan!]

Originally Posted by Lanny_McDonald

There is no indication of this in any form.

https://gophnx.com/back-to-the-futur...lain-sunlight/

Oh really?

"Ishbia, through a spokesperson, told PHNX Sports that his group would be open to discussions if the Coyotes were ever to be for sale."

There is a process to be respectful of, and from what I've heard locally.. take it for what it's worth to you. I really don't care, he created Player 15 to acquire MAJOR sports franchises - not just to contain the Suns/Merc/G-League. You do understand he was VERY close to buying the Denver Broncos right? He's not just a "basketball" guy.

These are the facts:

-The lease with the City of Phoenix expires in 2037, he will want to be in a new building by then.
-It will be more beneficial to house 2 major teams in a new building
-Renovations to accommodate the Coyotes is not a deal breaker, ice plant and locker room space will need to be built out - they can continue to play at mullett arena if needed until that's done
-The Coyotes will be cheaper if acquired at a discount from the NHL versus a future expansion or an expansion in another market

Bettman and the NHL are allowing Alex Meruelo to complete his deal but this is the plan B that will take place.

Relocation out of Market is plan C

Originally Posted by Lanny_McDonald

That's a minor point for argumentation but the same conditions apply. They bought a team and an arena they knew could not support certain events. Have either of the Ishbia's expressed interest in hockey or having interest to launch another renovation of the building that was just finished to put in place infrastructure they were well aware of being removed just before the sale closed? No. Not at all. Outside of Jordon connecting Suns owners to the Coyotes there has been zero smoke. Just the opposite actually. Ishbia stated last month that he has no interest in the Coyotes. Stop trying to make "fetch" happen.

If you're referencing Seravalli's article then yeah, he has no interest - Publicly... He is being respectful to the NHL's process. Seravalli is also doing anything he can to throw out torpedo's to this market in AZ.

[Lanny_McDonald]

Originally Posted by Jordan!

https://gophnx.com/back-to-the-futur...lain-sunlight/

Oh really?

"Ishbia, through a spokesperson, told PHNX Sports that his group would be open to discussions if the Coyotes were ever to be for sale."

HockeyNews versus a click bait fan site? I'll take the HockeyNews word for it thanks.

There is a process to be respectful of, and from what I've heard locally.. take it for what it's worth to you. I really don't care, he created Player 15 to acquire MAJOR sports franchises - not just to contain the Suns/Merc/G-League. You do understand he was VERY close to buying the Denver Broncos right? He's not just a "basketball" guy.

That was before he got the Suns. And let's not get crazy here. He wasn't VERY close. His group was one of five groups who made it through the bid evaluation process.

-The lease with the City of Phoenix expires in 2037, he will want to be in a new building by then.

That is 13 years from now.

-It will be more beneficial to house 2 major teams in a new building

That's your opinion, not a fact. There are all sorts of teams that have only one team in their building.

-Renovations to accommodate the Coyotes is not a deal breaker, ice plant and locker room space will need to be built out - they can continue to play at mullett arena if needed until that's done

Where do these spaces magically appear? Who is paying for them? It's not Ishbia's building. He can't just arbitrarily make structural changes to a building he doesn't own. City of Phoenix paid for approved the last renovations which resulted in a 1% tax hike on hotels and 2% tax hike on rental cars. They relocated the practice facility in favor of more revenue generating opportunities within the building and paid significant money to do so. Is the City of Phoenix going to okay this, in this political climate? I would call this a deal breaker as it not only impacts possible revenue streams but also tax agreements.

-The Coyotes will be cheaper if acquired at a discount from the NHL versus a future expansion or an expansion in another market

This is now the NHL's team to sell? I thought it was Meruelo's? It will only become the NHL's again if they revoke the franchise from him and it doesn't seem like they're prepared to do that.

Bettman and the NHL are allowing Alex Meruelo to complete his deal but this is the plan B that will take place.

They will search for prospective owners, but the building issue is a massive part of the problem. If the Coyotes ownership had just paid their bills they would still be in a viable building with time to make all the appropriate moves to secure a new location. I don't see anyone stepping up to buy the Coyotes without the arena issue being resolved. Footprint Center is not the solution.

Relocation out of Market is plan C

I think we're already at plan V or W for this franchise. The best thing possible is relocation while the market chaos cools, a new arena is built, and an expansion team with a no baggage is brought back to the market.

If you're referencing Seravalli's article then yeah, he has no interest - Publicly... He is being respectful to the NHL's process. Seravalli is also doing anything he can to throw out torpedo's to this market in AZ.

No body is trying to torpedo the market in Arizona except the Arizona Coyotes and the owners. Seravelli reports what he hears and this is consistent with the political and economic landscape of the region. You didn't have a clue about the Tempe situation and you tried to will that into being. You're doing the same here. This is so complex and messy the league should be looking for an exit strategy not trying to string this along.

[Strange Brew]

I feel bad for Phoenix fans of hockey. There are some out there.

No one from outside Phoenix is trying to torpedo anything. I understand embracing hope but you really need to evaluate any and all information coming from Meruelo and team. They have proven time and again that they are neither transparent nor overly honest.

The league wresting control of that franchise is probably going to be very messy.