ESPN's Burnside: Hulsizer submitted new deal; COG city manager dragging it out

[Killion]

.....If a team couldn't make it under those conditions it never will.

Interesting suggestions mac, unfortunately for the long suffering fans in Phoenix, the team & the COG the NHL is not in the business of owning arenas (even temporarily). Hypothetically, even if they did as you suggest, there is no way they'd get $300M for the building & the team. Its even questionable that the Parking Revenues would be enough to cover the debt servicing charges on the existing bonds.

They'd still have to receive the parking surcharge on every ticket sold and apply that to the debt, and if they retained the parking rights, the owner of the team / arena manager would suffer. According to the GWI, the COG cant purchase the parking rights as they already own them, thus eliminating their ability to purchase them back from the team using monies derived through a bond issue, be it $100M or $50M.

I think your onto something though, if the team retains (and charges for) the parking, continues to pay the ticket surcharge tax to the COG & receives a reasonable Arena Mgmnt Contract; the CFD executed throughout Westgate, the TNSE Relo Fee applied to the Coyotes debt (along with the eventual Moyes settlement) then were within range of closing a sale.

There is nothing 'Yotes related on the Agenda for Tues' (6/14) Council Meeting - there is not even an executive session scheduled.
The next meeting is a Council Workshop on 6/21.

Isnt the NHL's BOG's Meeting also scheduled for the 21st?. I was hoping upon hope that the COG wouldve' made far greater progress than what these reports suggest, the league in a position to discuss & approve an offer to purchase by that time. It would appear instead that though there has been lots of back & forth between Beasley & Hulsizer, Council is still in the dark, and with Summer Break nearly upon us, the Draft, UFA & RFA season virtually upon us, this could just get really really ugly if God forbid something doesnt happen & fast. I know we've all been saying that for months upon months now, but really, this is just beyond critical, $25M "Arena Management" fee or not....

 

[Prussian_Blue]

SO the $25M to NHL is not to cover loses, it is to manage the arena and book entertainment. Ummm , is a professional sports league ran out of New York the best people to hire to book the Sheryl Crow concert for a 250,000 city in Arizona?

If you think that's all the people that live in the Phoenix metro area, you're living in 1950...

 

[Steve Passless*]

Well, you can't count the entire Phoenix metropolitan area as a target market for the arena. I mean, Scottsdale is so far away!!!

 

[davemac1313]

Interesting suggestions mac, unfortunately for the long suffering fans in Phoenix, the team & the COG the NHL is not in the business of owning arenas (even temporarily). Hypothetically, even if they did as you suggest, there is no way they'd get $300M for the building & the team. Its even questionable that the Parking Revenues would be enough to cover the debt servicing charges on the existing bonds.

They'd still have to receive the parking surcharge on every ticket sold and apply that to the debt, and if they retained the parking rights, the owner of the team / arena manager would suffer. According to the GWI, the COG cant purchase the parking rights as they already own them, thus eliminating their ability to purchase them back from the team using monies derived through a bond issue, be it $100M or $50M.

I think your onto something though, if the team retains (and charges for) the parking, continues to pay the ticket surcharge tax to the COG & receives a reasonable Arena Mgmnt Contract; the CFD executed throughout Westgate, the TNSE Relo Fee applied to the Coyotes debt (along with the eventual Moyes settlement) then were within range of closing a sale.



Isnt the NHL's BOG's Meeting also scheduled for the 21st?. I was hoping upon hope that the COG wouldve' made far greater progress than what these reports suggest, the league in a position to discuss & approve an offer to purchase by that time. It would appear instead that though there has been lots of back & forth between Beasley & Hulsizer, Council is still in the dark, and with Summer Break nearly upon us, the Draft, UFA & RFA season virtually upon us, this could just get really really ugly if God forbid something doesnt happen & fast. I know we've all been saying that for months upon months now, but really, this is just beyond critical, $25M "Arena Management" fee or not....

I'm gonna go out on a limb and say they already own the parking....my opinion...others may despite this thought...however, follow me, So best case (or worst depending on the parking study you choose) they get 2 million a year off the lot, charging for all events, another 2 off ticket surcharges. They sell the arena for 100 million and apply the proceeds to the debt, they now owe 60. They use the parking and surcharges to cover that cost. They SAVE 25 million a year in management costs....they are way ahead. GWI can't complain....difference in value 160 vs 60 is made up in less than 5 years by saving the management fee of 25 that they swear they will spend anyway.

A relatively new building is worth between 150 and 250...is it not? Team is 70 to 150.....value to me is there, not that I would invest a nickel on NHL in that market, but hey...someone will.

You can't have a profitable team with out full control of the building and all revenue streams...new owner gets it.

COG gets all the tax income and allows Westgate to do its thing for 10 years...its, in my opinion a deal that solves every parties problems....if it works as believed, coyotes stay forever, if not, COG at least has the arena paid off.

Beasley can broker the deal if the NHL is not interested.

There is NO WAY NHL Hockey can work in Glendale unless the team owns the Arena. The city doesn't have to operate with a gun to its head and a hand in its pocket and it can escape some of the crushing sports debt it faces.

 

[Plub]

Sell it before the 21st, or move the ****ing team!

 

[Puckschmuck*]

Sell it before the 21st, or move the ****ing team!

We all know that just ain't gonna happen.

 

[Whileee]

Interesting suggestions mac, unfortunately for the long suffering fans in Phoenix, the team & the COG the NHL is not in the business of owning arenas (even temporarily). Hypothetically, even if they did as you suggest, there is no way they'd get $300M for the building & the team. Its even questionable that the Parking Revenues would be enough to cover the debt servicing charges on the existing bonds.

They'd still have to receive the parking surcharge on every ticket sold and apply that to the debt, and if they retained the parking rights, the owner of the team / arena manager would suffer. According to the GWI, the COG cant purchase the parking rights as they already own them, thus eliminating their ability to purchase them back from the team using monies derived through a bond issue, be it $100M or $50M.

I think your onto something though, if the team retains (and charges for) the parking, continues to pay the ticket surcharge tax to the COG & receives a reasonable Arena Mgmnt Contract; the CFD executed throughout Westgate, the TNSE Relo Fee applied to the Coyotes debt (along with the eventual Moyes settlement) then were within range of closing a sale.



Isnt the NHL's BOG's Meeting also scheduled for the 21st?. I was hoping upon hope that the COG wouldve' made far greater progress than what these reports suggest, the league in a position to discuss & approve an offer to purchase by that time. It would appear instead that though there has been lots of back & forth between Beasley & Hulsizer, Council is still in the dark, and with Summer Break nearly upon us, the Draft, UFA & RFA season virtually upon us, this could just get really really ugly if God forbid something doesnt happen & fast. I know we've all been saying that for months upon months now, but really, this is just beyond critical, $25M "Arena Management" fee or not....

We all know that just ain't gonna happen.

I think we all know that there is no chance that they will complete a sale prior to the June 21st BOG meeting, which means that it is almost certain that the NHL will continue to own the team into the draft and free agency period. It is ludicrous, and exacerbating the damage to the franchise in Glendale. The NHL needs to seriously consider and execute a definitive plan for the franchise.

 

[Killion]

You can't have a profitable team with out full control of the building and all revenue streams...new owner gets it.

Why would the NHL or the owner of the franchise want to own the arena now when they'll receive all of the revenue streams anyway and receive anywhere from $15M-$25M per annum from the COG in Arena Mngmnt Fee's?.

Sell it before the 21st, or move the ****ing team!

Mind blowing aint it?. Here its the 11th of June & for the past several weeks & for the next 10 days it looks like more "back & forth" between MH & Beasley while the Mayor & Council concern themselves with messaging & transparency?. We already get it. We know how important the franchise is to Westgate, Glendale & the greater Community of Phoenix. Stop with the dithering. The patients critical, Either a deal gets done now or it slips into a coma for the entire 2011-12 season before having the plug pulled & moved elsewhere.

It is ludicrous, and exacerbating the damage to the franchise in Glendale.

Totally agree Whileee. This is beyond madness. The fans in Arizona are spent. Worn out & dog tired. The dithering & procrastinating is sickening. What kind of fool wouldnt or couldnt possibly see & understand the enormous damage every day & week that passes causes the franchise & market?. Is the NHL deliberately trying to kill any chance of a turnaround?. Do they want to lose minimum another $20M next year?. I mean, WTF is going on here?.

 

[TheLegend]

Well, you can't count the entire Phoenix metropolitan area as a target market for the arena. I mean, Scottsdale is so far away!!!

Scottsdale is smaller than Glendale.