[Rumour] Coyotes owner put in letter of intent to buy 41 acres of land in Mesa, Arizona

[sureLoss]

https://arizonasports.com/story/3523...for-new-arena/

Arizona Coyotes owner Alex Meruelo has put in a letter of intent to purchase 41 acres in Mesa for the team’s new arena, per Arizona Sports’ John Gambadoro. This would begin a process to develop the first privately funded sports and entertainment district in the state.

Meruelo is still looking into other possible sites, with areas in the East Valley, including Mesa, Phoenix and Scottsdale, according to Gambadoro.

Meruelo’s goal is to have multiple sites under contract so there are options. This is to have a plan in place by the first quarter of 2024, so a target date is hit for a new arena’s completion in time for the start of the 2026-27 season. This would continue the Coyotes’ efforts and intention of staying in the Valley.

[Strange Brew]

His goal is to have multiple sites under contract?

[Moneyhands23]

Interesting. 41 acres is a big chunk of sand!

[Jacks]

Hard to believe that the Coyotes can generate enough revenue to pay for an arena. Are the NBA Suns going to play there or something?

[Jay Random]

Originally Posted by Strange Brew

His goal is to have multiple sites under contract?

Nothing wrong with owning more than one piece of real estate. He can flip the ones he doesn't need.

Originally Posted by Jacks

Hard to believe that the Coyotes can generate enough revenue to pay for an arena. Are the NBA Suns going to play there or something?

As I understand it, his gambling licence depends on operating the Coyotes in Arizona. Apparently he thinks that the gambling addicts of Arizona can generate enough revenue to pay for the arena, and if he makes a few bucks off hockey fans too, that's gravy.

He might be right, but the sports gambling business is starting to remind me of dot-coms in early 2000. There might be enough business to make 10 percent of the operators rich, but the rest are bound to go bust. So much for the old rule that the house never loses.

[Oil Stain]

Originally Posted by Moneyhands23

Interesting. 41 acres is a big chunk of sand!

Enough room to build a church because that team needs a miracle.

[Locke]

Originally Posted by Oil Stain

Enough room to build a church because that team needs a miracle.

[Locke]

And their new Arena should absolutely be called the 'ACME Dome.'

[getbak]

Originally Posted by Jay Random

As I understand it, his gambling licence depends on operating the Coyotes in Arizona. Apparently he thinks that the gambling addicts of Arizona can generate enough revenue to pay for the arena, and if he makes a few bucks off hockey fans too, that's gravy.

He might be right, but the sports gambling business is starting to remind me of dot-coms in early 2000. There might be enough business to make 10 percent of the operators rich, but the rest are bound to go bust. So much for the old rule that the house never loses.

They're barely making any money from their gambling license.

The State of Arizona releases a monthly report on the revenue from the sports gambling companies operating legally in the state: https://gaming.az.gov/resources/repo...report-archive

Some operators, like FanDuel and DraftKings have been bringing in millions per month.

The site that Meruelo owns is SaharaBets. It launched in January 2022 and they still haven't cracked $100,000 in gross receipts in any month since launch.

They're not offsetting any losses from the Coyotes with their gambling operations.

[Jay Random]

Originally Posted by getbak

The site that Meruelo owns is SaharaBets. It launched in January 2022 and they still haven't cracked $100,000 in gross receipts in any month since launch.

They're not offsetting any losses from the Coyotes with their gambling operations.

It's pretty obvious that this is not what Meruelo planned, or he would never have applied for a licence contingent on operating a professional sports franchise.

A sensible person would write the whole thing off as a loss and sell the franchise, but I think the tax authorities in Glendale can confirm that Meruelo is not a sensible person. There's no telling how far he may go before giving up.

[TheScorpion]

The prospective cash cow the Meruelo Group is undoubtedly banking on here is the residential aspect of an entertainment district. 41 acres would be more than enough to build a pretty sizeable condominium complex. The sportsbook always seemed like relatively small potatoes, at least to me, but who knows.

[Strange Brew]

Originally Posted by Jay Random

Nothing wrong with owning more than one piece of real estate. He can flip the ones he doesn't need.



As I understand it, his gambling licence depends on operating the Coyotes in Arizona. Apparently he thinks that the gambling addicts of Arizona can generate enough revenue to pay for the arena, and if he makes a few bucks off hockey fans too, that's gravy.

He might be right, but the sports gambling business is starting to remind me of dot-coms in early 2000. There might be enough business to make 10 percent of the operators rich, but the rest are bound to go bust. So much for the old rule that the house never loses.

You generally don’t develop a property by buying multiple pieces of land and deciding afterwards which one you want to develop. No developer would ever follow this strategy, it’s either a misquote or more BS from these guys.

As far as the gambling license, he has had it for a few years now and done next to nothing with it. If it is that valuable, why is he waiting?

[powderjunkie]

Originally Posted by TheScorpion

The prospective cash cow the Meruelo Group is undoubtedly banking on here is the residential aspect of an entertainment district. 41 acres would be more than enough to build a pretty sizeable condominium complex. The sportsbook always seemed like relatively small potatoes, at least to me, but who knows.

I don't think a pro sports team/arena is an effective 'loss-leader' for a real estate scheme like a ski resort or golf resort...

It's pretty absurd that they'll still be playing in the Mullet with no concrete plan in place.

[Jordan!]

I think the best spot would be near Talking Stick resort but the Indian land thing is a HUGE issue.

Mesa is close to the fans who actually want to go to Hockey games, Scottsdale, Chandler, Gilbert all within 20-25 minutes as well.

Call me when shovels hit they're pouring concrete though. lol

[Jordan!]

Also, Welcome to CooleyPuck..

Our incredibly loyal and passionate fan base is extremely excited about our team and the incredible additions we've made this summer including Matt Dumba, Jason Zucker, Alex Kerfoot, Nick Bjugstad, Troy Stecher, Sean Durzi and the top prospect in the world, Logan Cooley.

You're damn right!

[The Cobra]

Originally Posted by Strange Brew

His goal is to have multiple sites under contract?

They are letters of intent, so there would be no binding commitment to buy.

Likely more like an option to purchase.

[KootenayFlamesFan]

Originally Posted by Jordan!

Also, Welcome to CooleyPuck..



You're damn right!

Connor Bedard is still considered a prospect, no?

[FanIn80]

I think I saw this movie. He got the land for cheap with the promise that anything under it is his to keep, and the sellers laughed at him because everyone knew there was no oil there... but they never thought to look for water!

[Reggie Dunlop]

[Strange Brew]

Originally Posted by The Cobra

They are letters of intent, so there would be no binding commitment to buy.

Likely more like an option to purchase.

The article literally states his goal “is to have multiple sites under contract”.

But executing multiple LOI’s with intent to only close on one? Again no reputable businessperson does this either.