CXL - UPDATE 12/9 - Coyotes settle bills after unpaid taxes come to light

[Llama19]

I searched through the Tempe municipal code and it's not clear to me that the City Council would have needed to vote to authorize issuing the RFP - the Procurement Department may have been able to issue it on its own, even if the Council ultimately has the authority to accept or reject any proposals.

Discussion of the Rio Salado Parkway and Priest Drive location...
has occurred multiple times in Executive Sessions...
dating back to the initial discussion in February 2021...
after consensus was reached to proceed...likely at the June 24 session...
the RFP was issued on July 22...

 

[gstommylee]

I searched through the Tempe municipal code and it's not clear to me that the City Council would have needed to vote to authorize issuing the RFP - the Procurement Department may have been able to issue it on its own, even if the Council ultimately has the authority to accept or reject any proposals.

Seattle didn't vote to issue their RFP either the mayor at the time did it himself.

 

[TheLegend]

Seattle didn't vote to issue their RFP either the mayor at the time did it himself.

Tempe did something similar recently with the California Angels. They authorized the mayor to cancel the current lease for Tempe Diablo Stadium and sign a new replacement lease that had been negotiated.

Happened to catch it while looking through council agendas one day a few weeks back.

 

[TheLegend]

Article headline is a little bit of click bait but it confirmed discussion of the Coyotes proposal is finally reaching the city council. (Executive session slated for Monday)

Nothing really new in it other than IF an approval comes it will be towards the end of February.

https://www.azcentral.com/story/news/local/tempe/2021/12/20/tempe-discuss-options-land-where-arizona-coyotes-propose-arena/8947267002/

 

[TheLegend]

Also today…

 

[gstommylee]

Did people really think the city was gonna actually lock them out?

 

[Mightygoose]

Did people really think the city was gonna actually lock them out?

Meruelo and co. apparently did as they settled up almost immediately after the story broke

 

[gstommylee]

Meruelo and co. apparently did as they settled up almost immediately after the story broke

It was all posturing from both sides.

 

[Gotaf7]

It was all posturing from both sides.

Then why did they pay their bill?

 

[jonathan613]

Maybe they can buy GRA and split games between GRA (where they could play friday, saturday and sunday for example) and chase field (where they can play weeknights) and commit to a 10 year agreement to chase field so the fans know they are committed to staying long term. The playoffs would be at GRA (and if the location of GRA would cause problems the market is not ripe for an NL team anyway) It might be cheaper than having to spend a ton of money on a new place. Then at the end of the 10 years, they could implode gra with a new permanent replacement in tempe assuming strong enough demand.

 

[gstommylee]

Maybe they can buy GRA and split games between GRA (where they could play friday, saturday and sunday for example) and chase field (where they can play weeknights) and commit to a 10 year agreement to chase field so the fans know they are committed to staying long term. The playoffs would be at GRA (and if the location of GRA would cause problems the market is not ripe for an NL team anyway) It might be cheaper than having to spend a ton of money on a new place. Then at the end of the 10 years, they could implode gra with a new permanent replacement in tempe assuming strong enough demand.

The team isnt staying in state with out a new building. Chase field is where the diamondbacks play..

 

[TheLegend]

Did people really think the city was gonna actually lock them out?

If they hadn’t paid up…. yep.

Tommy…. note they’re also agreeing to keep with the payment schedule that ASM sent them.

With the Tempe city council getting around to discussing the proposal now they do not need any more drama being played in the media.

I have no doubt Bettman had a say in that.

 

[Mightygoose]

It was all posturing from both sides.

I guess Meruelo or more likely those in league office didn't want to take that chance

 

[TheLegend]

Borrowed from the attendance thread:

https://www.pollstar.com/Chart/2021/12/arenas_992.pdf

Noted GRA has improved its non-sporting event sales from 2019. Footprint in downtown Phoenix still dominates them with 50% more business but it’s easy to understand why Glendale is acting the way they are:

1- Glendale thinks they can do even better and get along fine without the Coyotes.

2- Glendale doesn’t want to lose what they’ve gained by another arena being built across town.

 

[MNNumbers]

Borrowed from the attendance thread:

https://www.pollstar.com/Chart/2021/12/arenas_992.pdf

Noted GRA has improved its non-sporting event sales from 2019. Footprint in downtown Phoenix still dominates them with 50% more business but it’s easy to understand why Glendale is acting the way they are:

1- Glendale thinks they can do even better and get along fine without the Coyotes.

2- Glendale doesn’t want to lose what they’ve gained by another arena being built across town.

Very true. Very true. And, it should be added (although who knows in what order these go for importance):
3- Meruelo has been a difficult business partner.

ETA (After Fairview liked the post)
It should also be mentioned that when COG was negotiating with IA, the best bid for the sake of the city was one that didn't include the Coyotes. Now, those bids didn't analyze the effects of secondary spending in the Westgate area. I am simply talking about the numbers in the bid. SMG (which existed at the time, and has since been swallowed in a merger) was offering the city a better deal if the team was gone. And, of course, the city doesn't get much from the team directly. Part of the problem is that Glendale gets nothing from the ticket sales on Coyote nights, and a big piece of the Naming Rights go to the team (at least I think that is still the case). And, as has been hashed here a lot, and will continue to be hashed here, to actually figure out how to do a good analysis if the team is not playing there is a very difficult thing. Difficult enough that I don't think it is really possible to say with a high degree of surety either way.

 

[gstommylee]

Here's the thing Glendale is betting they can pay off that arena debt with out a sports team... They are going to find out that its going to be difficult once the teams leaves. Its not that easy to replace 41 dates with non sport events especially when those non sport events have to be shared with the sun's arena.

 

[MNNumbers]

Here's the thing Glendale is betting they can pay off that arena debt with out a sports team... They are going to find out that its going to be difficult once the teams leaves. Its not that easy to replace 41 dates with non sport events especially when those non sport events have to be shared with the sun's arena.

Would you mind to share you independent, factual, numerical analysis that leads you to this conclusion?

 

[Dirty Old Man]

Anyone on here ever researched how Auburn Hills is doing after the Pistons left? Only other similar situation I can think of offhand, except their arena was 10-12 years older maybe.

 

[Mightygoose]

The Palace of Auburn Hills was owned by the Pistons so there wasn't going to be a situation where the city was owning a building after a major league team left

Of course they moved to Little Caesars Arena to join the Wings therefore the metro area went from 2 major indoor arenas down to 1.

A very different situation to what's going on in greater Phoenix

 

[LadyStanley]

Chase Field in running to host NHL hockey?

Chase Field might be Coyotes short term home. Some conflicts for 22-23 season.

 

[aqib]

Here's the thing Glendale is betting they can pay off that arena debt with out a sports team... They are going to find out that its going to be difficult once the teams leaves. Its not that easy to replace 41 dates with non sport events especially when those non sport events have to be shared with the sun's arena.

The arena is 18 years old. So it would be due for upgrades to keep pace with other arenas regardless. Keeping the Coyotes would mean more expenses. Also you'd have additional operational expenses having to convert to hockey and back so often. The idea is you wouldn't need 41 events to make up for the lack of Coyotes games. Add to that you can also give whatever show is coming to town whatever nights they want. The current City Manager is trying to make the best out of a bad situation. So I can see why he thinks this is the best move.

 

[TheLegend]

The arena is 18 years old. So it would be due for upgrades to keep pace with other arenas regardless. Keeping the Coyotes would mean more expenses. Also you'd have additional operational expenses having to convert to hockey and back so often. The idea is you wouldn't need 41 events to make up for the lack of Coyotes games. Add to that you can also give whatever show is coming to town whatever nights they want. The current City Manager is trying to make the best out of a bad situation. So I can see why he thinks this is the best move.

GRA has already had upgrades to the sound system, ice/chiller system, WiFi, concessions, suites, scoreboard, etc.

There is not a lot more than they really need to do other than seating.

The scheduling issue is a red herring.

 

[MNNumbers]

Is there a reasonable estimate for how much it's going to take to do the environmental clean up?

 

[Ciao]

Did people really think the city was gonna actually lock them out?

Yes.

 

[Ciao]

I think the City of Glendale, Arizona, got paid just in the nick of time.

It's reported on Monday afternoon that the Coyotes have paid the better part of $1 million outstanding to the City, in default of which the City would lock them out of the arena.

A few hours later, on Monday evening, the NHL announces that they are suspending play until December 26. However, the possibility exists that play will not immediately resume, if it resumes at all this season.

If I'm a lawyer – which I am – representing Glendale, Arizona – which I'm not (thankfully) – I'm breathing a big sigh of relief. As they say, timing is everything.

Move that December 20 deadline back one day to December 21, and Glendale would likely still be chasing the Coyotes for their money.

I have spent long enough litigating bad debts that I can smell these guys all the way from Ontario.