Alex Meruelo the new owner of the Arizona Coyotes

[Svechhammer]

Congrats on getting this done. I hope this signals an intention to stay and actually invest into the game in the region much like Dundon has done in Raleigh. The fans in that area have been through the absolute ringer and deserve to see it pay off in a resurgence of the franchise.

 

[Tawnos]

The existing fans support overwhelmingly a return to the original uniforms. They wear them on Saturday nights for home games. Fans, players and the team have acknowledged how popular they are. Fans are often asking for a full switch, even some players have chimed in and the team has hinted that the message has been received and a switch might be made when eligible.

As far as local marketing goes, one of the defining themes of Alex Meruelo’s career has been outreach to Hispanic communities. Turning the struggling pizza company into a Hispanic themed one and making it a success. The casino he bought is now targeted at catering to Latinos.

There is a lot of speculation that the only way a new arena gets built is with a tribal partnership. If the team can embrace native tribes and the local Hispanic population, while also moving the new arena just the other side of the freeway from Scottsdale, I think that’s a long way to gearing marketing toward the real local market.

I would absolutely love to see the team sponsor youth hockey for tribal kids (on and off the reservation) as well as kids in other underprivileged areas (demographically often Hispanic). I would love to see this ownership change result in not only stability for the team, but as a significant step forward in diversity of the game. I want to see a kid from the Rez get a scholarship to Michigan. I want to see an ESL kid get a full ride to BU. Or even better, stay here and raise ASU up to the level of those other programs.

I always go back to what happened in Nashville. Things changed when they started marketing to Nashville itself, both on the country music side (hockey tonky) and sort of promoting the violence in order to appeal to the rabid college football fandom (Smashville). It sounds like Meruelo is invested in that same style of targeted marketing, which hopefully will be great.

 

[rt]

I always go back to what happened in Nashville. Things changed when they started marketing to Nashville itself, both on the country music side (hockey tonky) and sort of promoting the violence in order to appeal to the rabid college football fandom (Smashville). It sounds like Meruelo is invested in that same style of targeted marketing, which hopefully will be great.

Up until now our ownership has always tried to market the team as Canadian as possible. They brought in Tim Horton’s and Smokes Poutine. Hell, they have Molson beer on tap. Theytried to make the team look like the Canadian World Junior team in terms of aesthetic. Everything’s about how they’ve operated seems to be designed to attract Canadians in town. The same people who were going to come anyway. They wasted all of their time and energy into being welcoming to the people who were always going to be there no matter what.

It reminds me of the Chicago Cubs spring training facility in the valley. When you go there, it’s all Chicago style everything. They made the park reminiscent of Wrigley from an aesthetic standpoint. They have Chicago beers. They have Chicago snacks. They have Chicago foods. It makes sense. The park is for Cubs fans visiting the valley for spring training. It’s a Cubs facility. It’s run by the Cubs.

Gila River Arena is just like that but for Canada. It’s pathetic.

 

[LadyStanley]

Love the original "kachina" coyotes logo.

 

[Tawnos]

Up until now our ownership has always tried to market the team as Canadian as possible. They brought in Tim Horton’s and Smokes Poutine. Hell, they have Molson beer on tap. Theytried to make the team look like the Canadian World Junior team in terms of aesthetic. Everything’s about how they’ve operated seems to be designed to attract Canadians in town. The same people who were going to come anyway. They wasted all of their time and energy into being welcoming to the people who were always going to be there no matter what.

It reminds me of the Chicago Cubs spring training facility in the valley. When you go there, it’s all Chicago style everything. They made the park reminiscent of Wrigley from an aesthetic standpoint. They have Chicago beers. They have Chicago snacks. They have Chicago foods. It makes sense. The park is for Cubs fans visiting the valley for spring training. It’s a Cubs facility. It’s run by the Cubs.

Gila River Arena is just like that but for Canada. It’s pathetic.

That seems like an awful misreading of their market

Sorry you had to deal with that.

Also worth mentioning that the change in marketing strategy in both Nashville and Carolina came simultaneously with a resurgence of competitiveness on the team itself. Hopefully the same thing is going to happen there, because that's a great way for an organization to really hit a stride.

 

[The Feckless Puck]

That seems like an awful misreading of their market

Sorry you had to deal with that.

It's been mentioned before, but bears mentioning now - IceArizona wanted to play Coyotes home games in Saskatoon.

Saskatoon.

I legitimately wanted to write a book about this whole decade-plus but I got too damned depressed after a few chapters.

 

[cbcwpg]

That's what we all (or most of us) hope - on both counts. Phoenix is just under half Hispanic, demographically speaking (I think I read 42% in a recent story), and it's a hell of an untapped market. Having a Hispanic owner with a history of making a fortune by simply recognizing that demographic bodes well for the future, at least in theory.

In your opinion, would that untapped market be enough to keep the team in Glendale? Or will the arena end up still being an issue no matter what?

 

[Mightygoose]

Yep. It says the Coyotes have been sold. To Alex Meruelo.

It sure does. Even at 60% of the asking price, I think this can put the franchise in a better position than having the league stubbornly hold on to an unrealistic value.

Let a potential good owner pay the price they're willing to pay, especially if they'll need to invest allot more post purchase. Otherwise, they risk getting another IA.

 

[GordonGraham]

How many different owners in past 10 years ?

Of course he will say all the right things, great team, community, fan base,bright future , new arena ….
but with a year to year lease did he have to commit to the league to stay there for a minimum of 3-5-7-10 years ?

 

[TheLegend]

Saw the sale price is 300m... that's low.

Alex Meruelo May Get The Arizona Coyotes For Roughly $300 Million

Alex Meruelo purchase of Coyotes finalized, making him NHL's first Latino majority owner

Ozanian (Forbes) was spitballing at the price and his track record on anything Coyotes over the years hasn't been the greatest.

BUT..... if you look at how Meruelo acquired the SLS Las Vegas.... from what I have read to date..... on the surface he got it for merely paying off the debt (of around $400 million), and immediately committed another $100 million to remodeling and rebranding (back to its original name The Sahara).

 

[The Feckless Puck]

In your opinion, would that untapped market be enough to keep the team in Glendale? Or will the arena end up still being an issue no matter what?

The team isn't staying in Glendale. Somewhat ironic that Glendale would be the perfect place to tap into the Hispanic market, but Scottsdale/Tempe is where they (read: the NHL) want to move, and there's no stopping that rolling stone now.

How many different owners in past 10 years ?

Of course he will say all the right things, great team, community, fan base,bright future , new arena ….
but with a year to year lease did he have to commit to the league to stay there for a minimum of 3-5-7-10 years ?

There have been three owners in the past 10 years (if you start calculating from when Jerry Moyes declared bankruptcy): the NHL, IceArizona, and Andrew Barroway. Two of those owners - the NHL and Barroway - were placeholders for permanent owners. IceArizona turned out to be a cabal of bad actors with no money, and Barroway came into the picture specifically to get rid of them after they defaulted on their lease agreement and spent a couple of years making the NHL look bad by proxy.

Comparing Alex Meruelo to any of these folks is comparing apples to lint traps.

The thing you and everyone else need to know about Meruelo is that he wants to own this team for much different reasons than anyone since Gluckstern back in the Winnipeg days. Whether he's successful or not remains to be seen (although his track record to date is impeccable) - but in no way, shape, or form should he be lumped into the same group of pretenders that have held the reins since the early 2000s.

 

[Mightygoose]

Ozanian (Forbes) was spitballing at the price and his track record on anything Coyotes over the years hasn't been the greatest.

BUT..... if you look at how Meruelo acquired the SLS Las Vegas.... from what I have read to date..... on the surface he got it for merely paying off the debt (of around $400 million), and immediately committed another $100 million to remodeling and rebranding (back to its original name The Sahara).

Yeah, I would like to see another piece to see their take on the price.

Still, if Meruelo paid the debt on SLS and invested afterwards, it seems along the lines of what Ozanian is suggesting. If Meruelo is paying the debt - as opposed to just taking it on - that would put the team in a better position moving forward.

Better not to have the buyer take on extra expenses (i.e. paying an inflated franchise value) if there's so much more work to be done later. Makes sense why a value hasn't been announced.

 

[DaBadGuy7]

As of now, the mega thread is closed

HOWEVER @mouser @Llama19 - There is still the continuing question of the arena.

The Suns and Coyotes need to do what happened in Chicago with the United Center - where both teams are full partners.

Atlanta followed the Chicago blueprint with the then Phillips Arena as did Philadelphia with the Sixers and Flyers but then Atlanta failed when Time-Warner had to sell off their sports properties because of the disastrous merger with AOL.

Won’t happen, Sarver got the Phoenix city council to approve renovations on TRSA early this year. Sarver wants all the revenue to himself and has little desire to partner with Coyotes on either making TRSA a hockey friendly building or a new arena in downtown Phoenix.

 

[TheLegend]

Arizona Coyotes CEO Ahron Cohen on the radio about 2 hours ago (listening as I type this so don't know the content )

July 30, 2019 - Hour 4 - Doug & Wolf - Omny.fm

 

[cutchemist42]

So how does the price factor in the debt? Did the NHL absorb it?

 

[tarheelhockey]

May this usher in a long term of stability for the Coyotes.

Obviously Phil Kessel was the final piece to ensure the deal happened.

Wouldn't it be something if the renaissance of the franchise coincided perfectly with acquiring Phil Kessel? That would be the most meme-able thing to happen... maybe ever.

 

[justafan22]

Congrats!

 

[kaiser matias]

I legitimately wanted to write a book about this whole decade-plus but I got too damned depressed after a few chapters.

I've thought about that as well, and considering the 10 years of sources we have here, it would actually not be too difficult I think. Though have to wait to ensure this is the end, as we've heard this before. But I'm cautiously optimistic.

 

[End on a Hinote]

First Hispanic owner too.

Matthews to the Yotes eventually?

 

[Jumptheshark]

How long will this guy last?


Hopefully he sticks around

 

[The Feckless Puck]

Wouldn't it be something if the renaissance of the franchise coincided perfectly with acquiring Phil Kessel? That would be the most meme-able thing to happen... maybe ever.

We'd have to have a statue of a hot dog next to the Shane Doan statue at the new arena.

 

[Llama19]

So how does the price factor in the debt? Did the NHL absorb it?

It is interesting that someone has purchased, what is now a portable asset (as it is speculated that the no-move/7-year clause has been waived), by buying into a mountain of debt...

There has to be nothing short of a massive turnaround at the gate, with corresponding increases in ticket prices, big(ger) sponsorships, better broadcast revenue, etc...

With Meruelo 'assuming' the franchise's debt load...he will be covering substantial losses if any of the below mentioned items fall short...

In the aforementioned radio interview...CEO Cohen hemmed and hawed on a multi-year lease extension at GRA...and danced around the new arena location...again...still talking about a private/public partnership...

 

[The Feckless Puck]

It is interesting that someone has purchased, what is now a portable asset (as it is speculated that the no-move/7-year clause has been waived), by buying into a mountain of debt...

I really hate to put a damper on your typically sunny assessment of things, my camelid friend, but you are literally making up the bolded part. I mean, far be it from me to forbid you to fantasize about it privately, but neither portability nor the clause waiver has any factual basis.

 

[TheLegend]

Well....... to aleeve some of the afore mentioned drama with what we actually know.

Meruelo has an established history of aquiring assets that can be turned around and hangs on to them.

He isn't afraid to drop additional funds into newly acquired assets (as evidenced by the Coyotes current cap hit).
He has connections in the gaming industry.
He has a media group.
He has his own construction/real estate group.

And "public/private partnerships" can mean a lot of things.

AND..... there is zero evidence of the existence or NON-existence of a "no move" agreement (but as I said previously.... You Tin Foil Hat May Vary).

 

[ottawa]

Was hoping for a Quebec relocation ultimately even though it was unlikely. Now it's just impossible. It'll need to be an expansion and who knows how long that will be since Seattle just took the 32nd spot.

Is there a clause saying the team has to remain in Arizona permanently?