CXLII - Coyotes agree to play at ASU with $20m annex for next three years.

[gstommylee]

It’s all about clicks. Something tells me if the headline was “Coyotes-ASU deal includes moral clause common in modern business deals” won’t exactly get the clicks and Twitter traction that the athletic wants.

They know that shitting on the coyotes and inviting their readers to join in is a click goldmine, actual facts be damned.

Indeed. Its why ehtical honest journalism has gone down the hill lately.

 

[Mightygoose]

The "clickbait" story is making enough rounds that Sportsnet....an official NHL media partner....is mentioning it

Report: Arizona State can kick Coyotes out for poor behaviour

Arizona State University can break its lease deal with the Phoenix Coyotes if the NHL club or its owner violate certain terms on behaviour, The Athletic reports.

www.sportsnet.ca

They don't need the click the way the Athletic does so it it's a standard part of a contract there's a reason to point this out in the team's case

It may end up being nothing but closer to the first home game will measure it's validity IMO. Just look at center ice and spot the Coyotes logo.

Spot it..all is well in the world. Don't spot it.... it's doom.

 

[TheLegend]

Wouldn't a good writer also research stuff before writing?

You would think....

I believe The Athletic requested and obtained a copy of the full lease, read it, then came up with their own conclusions without exploring any further context.

If their interpretation of the lease was such a 'gotcha" thing it could have stood up on it's own. But it doesn't, so they add all of their previous articles slamming the franchise to support their interpretation.

ASU has confirmed it's a standard clause in their agreements with private entities, and had they realized that it would have turned it into a big nothing burger of an article.

------

Here's the thing about The Athletic.... the literally cut all their local staff writers that covered the Arizona market (sans one) some two years ago. Four major sports franchises in the state and they keep one guy who's main coverage is the Suns and ASU. Everything else is written by someone who mails it in from somewhere out of state.

 

[Jyrki]

Seems more like you guys are clinging onto a strawman to overlook how godawful and embarrassing the deal is.

The NHL not only isn't making overwhelming financial concessions and subjecting itself to ridicule by playing in a tiny arena, but they've also caved in to just about every demand - even letting ASU make a dent on the sacrosanct branding of the league.

The Coyotes won't even get to show their logo in center ice - ASU gets it. They can't sponsor or sell concessions willy nilly either, ASU has to OK arena partnerships or beer sales. The Coyotes make improvements to the arena, well, ASU gets to keep them all with no compensation. Parking revenue for Coyote games? That also goes into ASU's pockets. The NHL gave up normal revenue supplements and much of their branding power in spite of already taking major losses to play at ASU at all.

The "good behavior" clause is a flex from ASU acknowledging they have all the leverage and that there's nothing the NHL can do about it, because the league is so bloody stubborn about making the Coyotes work in spite of the perennially hemorrhaging finances. If the deal somehow sours from ASU's perspective, they have a potential out that can saddle the NHL with 100% of whatever problem the Coyotes would hypothetically introduce.

It's fine to want the Coyotes to succeed despite the odds, but you can't just put the blinders on and pretend the NHL isn't being bent over here. If anything, it shows the league will pay any cost - whether financial, PR or intangible - to make the NHL work in Arizona. For their part, ASU literally gets a major league tenant while getting to promote their own brand and get ancillary revenue - all without needing to put forth their own product. It's actually free real (and intangible) estate.

 

[Acesolid]

I understand some people who feel the need to be "steelmaning" for the Coyotes... but from all angles this is absurd.

1. The Coyotes will be playing in an arena with BELOW-JUNIOR HOCKEY CAPACITY.
2. In that Arena, they wont have their advertisers... or even their own logo on the ice... instead it'll be a medium-sized University's!
3. They will massively invest in said University facilities... for nothing as the University will then take ownership of these facilities.
4. The University reserves the right to kick the team out if the organization or the team's owner looks too bad.
5. This insane arrangement will last YEARS and it's replacement's planning isn't finalized yet!

Taken together. This is 100% nuts.

 

[Burke the Legend]

What's so nuts about it? NHL teams have played in some pretty bad temporary facilities before while new arenas are constructed. If they can get this Tempe Arena project finalized and under construction then it's all good. If they can't get it going in a year then probably the Coyotes relocate.

 

[Cynicaps]

Is this all worth it? And should the 10 teams to relocate/fold in the modern era have been given the same chances the Yotes have?

Let this team die with dignity. It would be for the best.

 

[TheLegend]

I understand some people who feel the need to be "steelmaning" for the Coyotes... but from all angles this is absurd.

1. The Coyotes will be playing in an arena with BELOW-JUNIOR HOCKEY CAPACITY.
2. In that Arena, they wont have their advertisers... or even their own logo on the ice... instead it'll be a medium-sized University's!
3. They will massively invest in said University facilities... for nothing as the University will then take ownership of these facilities.
4. The University reserves the right to kick the team out if the organization or the team's owner looks too bad.
5. This insane arrangement will last YEARS and it's replacement's planning isn't finalized yet!

Taken together. This is 100% nuts.

Nyah…. What’s absurd has been people taking things that are standard business practices and blowing them up totally out of proportion to the point it’s become hilarious.

 

[TheLegend]

Is this all worth it? And should the 10 teams to relocate/fold in the modern era have been given the same chances the Yotes have?

Let this team die with dignity. It would be for the best.

At the moment to Alex Meruelo it’s worth it.

And until otherwise that’s all that matters.

 

[Cynicaps]

At the moment to Alex Meruelo it’s worth it.

And until otherwise that’s all that matters.

A man who clearly has issues and is unfit to own a team. A real owner would've begged to stay in Glendale rather than become an embarrassment.

Glendale wants the Yotes to die. Sarver wants the Yotes to die. Why so Meruelo and Bettman have this psychotic and deranged obsession with not conceding that this team is a failure beyond help?

 

[StreetHawk]

A man who clearly has issues and is unfit to own a team. A real owner would've begged to stay in Glendale rather than become an embarrassment.

Glendale wants the Yotes to die. Sarver wants the Yotes to die. Why so Meruelo and Bettman have this psychotic and deranged obsession with not conceding that this team is a failure beyond help?

NHL wants AZ to work I get that for the market size and all. But they have been there since 1996. Coyotes financially have not attracted great ownership groups over the years. Why is that?

For all that the nhl has propped up the potential of AZ, no billionaire has stepped up to make it happen for them. If AM can’t get this Tempe deal done is that finally going to be the end of the line?

It’s a big market and hopefully this gets resolved one way or another. But the potential of this market that the nhl has bet on hasn’t been enough to convince someone with deep pockets to make it work arena wise.

The NHL’s has known that a new arena was needed when they arrived. The Suns arena was basketball specific. So it, needed to have owners in the 90’s and early millennium who were capable of getting an arena deal done outside Phoenix as the city had already contributed to build the Suns arena which opened in 1992.

 

[TheGreenTBer]

Imagine being so transparently frightened by an intelligent, well-connected woman.



I find blatant misogyny more pathetic but that might just be me.

Do you judge a woman's writing differently than a man's? Do you judge a trans person's writing differently from a cis person's? There may be certain topics that people of certain gender identity, racial or religious identities may be more qualified to write/talk about, but said characteristics do not make the quality of their work any better or worse.

Your gender identity doesn't have a single thing to do with your skills or abilities as a hockey writer.

 

[hockeyguy0022]

People need to understand, even until the late 80's/early 90's many of these cities in north america didn't have large arenas outside the original 6 areas. So a temp small arrangement in Calgary/Tampa/San Jose etc.. was acceptable.

It's different now as all centers with significant populations have 15-20K arenas for many things. There are more options for both temp or permanent arrangements.

it's just a different time, keep it in mind.

 

[ottawa]

Nyah…. What’s absurd has been people taking things that are standard business practices and blowing them up totally out of proportion to the point it’s become hilarious.

Can you name other teams that are going through these "standard" business practices?

 

[Acesolid]

Nyah…. What’s absurd has been people taking things that are standard business practices and blowing them up totally out of proportion to the point it’s become hilarious.

A teams lease isn't a trivial business deal. Teams usually make sure to get an iron-clad lease or own the building themselves.

Because the alternative (of a team being homeless) must be avoided at all costs.

Heck, sometimes leases are so rock solid that the team hates it. (Like the TB Rays in their horrible Dome)

For exemple, that's the key lesson of how Robert Kraft managed to strong arm his way into his hostile taking over of the New-England Patriots. He (wisely) realized the Patriots had a BINDING lease until 2001, so he purchased the Stadium... and then when the team was to be sold for people who would move them to St-Louis.... he was able to use the lease and his ownership of the Stadium to make himself the only possible person to buy the team.

That's how totally fool-proof these leases can be.

The ASU deal shows how precarious the Coyotes situation is.

 

[gstommylee]

Can we stop with the whole trashing of the darn franchise. Its getting old. The team will remain in arizona until Meruelo no longer wants to own it and sells and there is NO one else that wants to won the team in arizona until both happens the team isn't moving and there not a darn thing the NHL can do about it.

Also just top Morgan tweeted yesterday

 

[Spring in Fialta]

Nyah…. What’s absurd has been people taking things that are standard business practices and blowing them up totally out of proportion to the point it’s become hilarious.

Oh come the f*** on at this point dude.

 

[TheLegend]

A man who clearly has issues and is unfit to own a team. A real owner would've begged to stay in Glendale rather than become an embarrassment.

Glendale wants the Yotes to die. Sarver wants the Yotes to die. Why so Meruelo and Bettman have this psychotic and deranged obsession with not conceding that this team is a failure beyond help?

Every owner past Steve Ellman looked to get out of Glendale.

Even when Greg Jamison made his bid to purchase the Coyotes he was already scouting sites in Scottsdale to place another arena. I know this from an acquaintance who directly worked with Jamison on his bid.

The business model for Glendale was destroyed the day Steve Ellman and Jerry Moyes dissolved their partnership that led to the Coyotes being separated from Westgate. Ellman used the Coyotes as a driver for Westgate and in return Westgate could provide the added revenue streams that are needed to support a pro sports franchise in this day and age.

Glendale didn't want the Coyotes to die. They just didn't want the team to go somewhere else in Phoenix Metro and build another arena they would have to compete with. Sarver is the same situation, but you realize he's got his own set of issues right now with the NBA.

 

[TheLegend]

Can you name other teams that are going through these "standard" business practices?

Dumb question.

How many teams are temporarily using a college owned facility to play in??

ASU confirmed this is their standard procedure.

 

[StreetHawk]

Every owner past Steve Ellman looked to get out of Glendale.

Even when Greg Jamison made his bid to purchase the Coyotes he was already scouting sites in Scottsdale to place another arena. I know this from an acquaintance who directly worked with Jamison on his bid.

The business model for Glendale was destroyed the day Steve Ellman and Jerry Moyes dissolved their partnership that led to the Coyotes being separated from Westgate. Ellman used the Coyotes as a driver for Westgate and in return Westgate could provide the added revenue streams that are needed to support a pro sports franchise in this day and age.

Glendale didn't want the Coyotes to die. They just didn't want the team to go somewhere else in Phoenix Metro and build another arena they would have to compete with. Sarver is the same situation, but you realize he's got his own set of issues right now with the NBA.

One of the main things the NHL had to vet during any AZ ownership change was to make sure the ownership group had a plan on getting a new arena and be comfortable with that plan. Phoenix arena was a temporary solution. Needed owners who could work with another city to get one built.

Can’t get the arena wrong.

 

[Cynicaps]

Glendale didn't want the Coyotes to die. They just didn't want the team to go somewhere else in Phoenix Metro and build another arena they would have to compete with. Sarver is the same situation, but you realize he's got his own set of issues right now with the NBA.

If Glendale didn't want the Yotes to die, they wouldn't have kicked them out of a perfectly good arena and would've grinned and beared it until Tempe was ready.

If Sarver didn't want the Yotes to die, he would've let them play at a flawed Footprint rather than end up in an embarrassing debacle.

That the Yotes are reduced to being second fiddle to a college program is embarrassing. Let then play elsewhere for a few years a la the Hornets post-Katrina, it'd be good to beta test some markets.

 

[gstommylee]

If Glendale didn't want the Yotes to die, they wouldn't have kicked them out of a perfectly good arena and would've grinned and beared it until Tempe was ready.

If Sarver didn't want the Yotes to die, he would've let them play at a flawed Footprint rather than end up in an embarrassing debacle.

That the Yotes are reduced to being second fiddle to a college program is embarrassing. Let then play elsewhere for a few years a la the Hornets post-Katrina, it'd be good to beta test some markets.

NHL isn't going to do that like the NBA did. If they move then its pernament no temporary stay in a different market.

 

[TheLegend]

A teams lease isn't a trivial business deal. Teams usually make sure to get an iron-clad lease or own the building themselves.

Because the alternative (of a team being homeless) must be avoided at all costs.

Heck, sometimes leases are so rock solid that the team hates it. (Like the TB Rays in their horrible Dome)

For exemple, that's the key lesson of how Robert Kraft managed to strong arm his way into his hostile taking over of the New-England Patriots. He (wisely) realized the Patriots had a BINDING lease until 2001, so he purchased the Stadium... and then when the team was to be sold for people who would move them to St-Louis.... he was able to use the lease and his ownership of the Stadium to make himself the only possible person to buy the team.

That's how totally fool-proof these leases can be.

The ASU deal shows how precarious the Coyotes situation is.

Okay.... the Coyotes don't own the building.... ASU does.

As a publicly funded university ASU has specific clauses they put in their contracts to protect their interests. Are you going to tell me that this is something completely different because.... you know..... it's the Coyotes!!!

Meruelo is putting up to $40 million into the facility over the next 3-4 years (which ASU keeps, btw.... think potential tax write off for Meruelo given it's all going to benefit a university in the long run .) With most of the funds already been paid up front before the ink on the lease was even dry.

The precariousness here is what Tempe does.

But you have to admit.... Meruelo is covering a lot of bases with his actions to date.

- He's had Goldwater Institute in the loop the entire time he's been working with Tempe.
- He has ASU supporting him (they're Tempe's #1 economic driver) ASU has shown interest in using his arena for men's basketball if it appens.
- He has OVG now on board (they just signed a 1-year co-marketing agreement for the MPA and OVG could end up managing the arena at TED)

Yup..... guy's got serious issues.

 

[TheLegend]

If Glendale didn't want the Yotes to die, they wouldn't have kicked them out of a perfectly good arena and would've grinned and beared it until Tempe was ready.

If Sarver didn't want the Yotes to die, he would've let them play at a flawed Footprint rather than end up in an embarrassing debacle.

That the Yotes are reduced to being second fiddle to a college program is embarrassing. Let then play elsewhere for a few years a la the Hornets post-Katrina, it'd be good to beta test some markets.

Coyotes TRIED to get a 3-5 year deal with Glendale while they pursued the Tempe proposal.. Glendale told them it was going to be 15-20 years or nothing. On top of it Glendale wanted Meruelo to pump additional money into the arena where much of it would be of no benefit to him.

Sarver controls all of the revenue at Footprint Center. Why would he suddenly want that revenue going to someone else. Likewise.... why would Meruelo want to play in an arena where he had even less than what was getting at GRA. Playing at ASU is actually more beneficial to him (both short AND long term) than downtown..

 

[Cynicaps]

Sarver controls all of the revenue at Footprint Center. Why would he suddenly want that revenue going to someone else. Likewise.... why would Meruelo want to play in an arena where he had even less than what was getting at GRA. Playing at ASU is actually more beneficial to him (both short AND long term) than downtown..

Footprint would be a lot less embarrassing than ASU though and wouldn't have the horrible optics that this debacle has.

NHL isn't going to do that like the NBA did. If they move then its pernament no temporary stay in a different market.

Why not? A temporary stay elsewhere made the NBA aware of a untapped market. Why would the NHL not want similar?