IceArizona - Year One: Performance Evaluation

[Bonsai Tree]

If the Coyotes could exclusively play only the Wings, BlackHawks, Wild, Jets, Oilers and Flames in Jobbing attendance could be pretty high on the other hand most would be cheering for the visiting team!

How true. There are so many here who migrated/emigrated from elsewhere that this is how it is supposed to be. It took a while for me to change from a Rangers fan to a Coyotes fan. (I am quite pleased about today's Rangers effort, btw).

 

[Llama19]

Related to the section: The Financial State of Glendale, there is no doubt that Glendale's debt burden is at the root of its financial mess.

The borrowing of water/sewer funds to pay the NHL their $50 million, is just one of many issues.

Read more here: http://joyceclarkunfiltered.com/a-coat-with-many-pockets-part-i/

The question becomes, with the lack of reimbursed 'revenue' from IceArizona, does Glendale try to re-negotiate their contract with IceArizona in an attempt to forestall starting municipal Chapter 9 bankruptcy?

Will Glendale be next to join the Bankrupt Cities, Municipalities List and Map?

 

[Tommy Hawk]

1...Per section 8.14.1 Requirement – The Arena Manager shall, not later than May 31 of each year, prepare and submit to the City and the Team Owner, for their respective review and approval, a proposed Annual Budget (including expense and revenue projections)...

Will the taxpayers of Glendale see that report?

I certainly hope so because it may give us a better insight on IceArizona's business plan.

2...Based on the various articles, the city has been 'skating' on the thin ice of bankruptcy for several years and is about to fall in (sorry, couldn't resist the analogy).

If a taxpayer files a request under the AZ version of the freedom of information act then yes they would be able to see it.

So with the timing of this agenda item, has Mr. Beasley been working quietly behind the scenes?

To quote:

"Beasley, 54, was named a vice president of the company’s Government Solutions section in January and will work in the Phoenix office.

The position follows 10 years of service for the city, a tenure marked by the development of three major professional sports facilities — University of Phoenix Stadium, which is anchored by the Arizona Cardinals and Fiesta Bowl; Jobing.com Arena, which is home to the Phoenix Coyotes; and Camelback Ranch Glendale, which is the spring-training site for the Chicago White Sox and Los Angeles Dodgers.

In his new role, Beasley advises state, county and municipal governments on issues relating to economic development, asset management and public-private opportunities, said Kurt Stout, executive vice president of the Government Solutions section for Colliers."

Source: http://www.azcentral.com/community/...ormer-city-manager-takes-real-estate-job.html

Is this one long game of Stratego?

He has such a proven record of successful economic development I think that municipalities will flock to hear what he pitches.

Related to the section: The Financial State of Glendale, there is no doubt that Glendale's debt burden is at the root of its financial mess.

The borrowing of water/sewer funds to pay the NHL their $50 million, is just one of many issues.

Read more here: http://joyceclarkunfiltered.com/a-coat-with-many-pockets-part-i/

The question becomes, with the lack of reimbursed 'revenue' from IceArizona, does Glendale try to re-negotiate their contract with IceArizona in an attempt to forestall starting municipal Chapter 9 bankruptcy?

Will Glendale be next to join the Bankrupt Cities, Municipalities List and Map?

These guys are hosed. They originally had almost no money budgeted for the arena as they thought the parking fees would pay for the construction bonds.

They then paid 25 mil to the NHL for nothing other than the privilege of Bettman showing up once or twice.

And even though they budgeted 6 mil for the running of the arena and 9 mi for the debt payment, this is REAL MONEY. So they only went over the budget by 2.5 mil or so. They are 17.5 mil over what they told everyone it would cost when they built the thing.

So, right now after the NHL screwed them and this yea, what is that. $82.5 million net down the crapper?

 

[Llama19]

Related to the section, Promotions:

The Phoenix Coyotes announced today that in an effort to continue strong communication with their fans, the Coyotes will host another Town Hall Meeting on Thursday, June 5 at 7:00 p.m. at Ice Den in Scottsdale (9375 E. Bell Road – just east of the 101/Pima Road on Bell).

All members of the panel will respond to issues pertaining to the on-ice direction of the team and the off-ice business practices and services of the organization.

Source: http://coyotes.nhl.com/club/news.htm?id=720054

 

[GuelphStormer]

Related to the section, Promotions:

The Phoenix Coyotes announced today that in an effort to continue strong communication with their fans, the Coyotes will host another Town Hall Meeting on Thursday, June 5 at 7:00 p.m. at Ice Den in Scottsdale (9375 E. Bell Road – just east of the 101/Pima Road on Bell).

All members of the panel will respond to issues pertaining to the on-ice direction of the team and the off-ice business practices and services of the organization.

Source: http://coyotes.nhl.com/club/news.htm?id=720054

i hope someone asks them for their thoughts on the possibility that glendale might actually go bankrupt because of the subsidies it gives them.

 

[awfulwaffle]

i hope someone asks them for their thoughts on the possibility that glendale might actually go bankrupt because of the subsidies it gives them.

And, most of the people, if not all, that attend this thing in Scottsdale won't be from Glendale.

The only question that really matters, is what happens to the team if Glendale does go bankrupt.

 

[MNNumbers]

And, most of the people, if not all, that attend this thing in Scottsdale won't be from Glendale.

The only question that really matters, is what happens to the team if Glendale does go bankrupt.

Totally this!! CasualFan, barneyg and OthmarAmmann might have to help us with this one.

I think the things that factor into the answer are how the various contractual requirements of the city are weighted in importance through the BK process.

Does the city have to sell infrastructure to pay its debts? If so, would they sell the arena? If so, does the lease go with the arena as it is sold?

I am not sure, but I believe that in the event of a city default, the lease is broken, so the team either waits out the BL process to renegotiate, or the team is mobile.

 

[Llama19]

From today's, May 20, workshop on selling city property and facilities.

Video* link: http://glendale-az.granicus.com/MediaPlayer.php?publish_id=e7d937ed-31c4-1032-aaea-c81612194a28

* Starting approximately at the 18:00 through the 38:30 time mark.

Pretty much decided in seeking a 'professional' to obtain a high level list to see what it's worth, if it's sell-able, and what the next steps would be.

So, who would be that 'professional' they are seeking?

Under topics of special interests, Vice-Mayor Knaack wants staff to research how other cities and their council members use their 'discretionary' funds.

Really?

A few drops of water in the ocean compared what has been spent on other things by this council.

 

[CasualFan]

I think the things that factor into the answer are how the various contractual requirements of the city are weighted in importance through the BK process.

Municipal Bankruptcy is an extraordinary remedy. The visionaries have dug a massve whole, portions of which are because they have stubbornly/stupidly/corruptly provided public funding to subsidize a hockey business that had already proven time and again that it isn't viable. But, I wouldn't start anaylzing the Chapter 9 possibilities. I think we're still pretty far from that. If it were to occur, the restructuring of unfunded pension liabilities/OPEB would likely be the focus. If they were going to pursue strategic default, I assume they would walk away from the spring training stadium (if that hasnt already been woven into MPC refis that make the obligations inseparable)

 

[GuelphStormer]

I am not sure, but I believe that in the event of a city default, the lease is broken, so the team either waits out the BL process to renegotiate, or the team is mobile.

theoretically ... practically, however, it would be financially catastrophic. that would presume an actual landing spot, of which there are few, even fewer without potential owners already in line. gosbee/IA would be lucky to escape with their shirts were they to try to sell directly to another owner in another city once the league adds on its relo-fee (ie., PKP isn't going to pay a relo fee and make IA whole), and it would be beyond laughable if they were to try to move and own it themselves in another city.

in other words, this franchise ceased to be a potentially profitable, portable asset the day the league sold it.

 

[Llama19]

Municipal Bankruptcy is an extraordinary remedy. The visionaries have dug a massve whole, portions of which are because they have stubbornly/stupidly/corruptly provided public funding to subsidize a hockey business that had already proven time and again that it isn't viable. But, I wouldn't start anaylzing the Chapter 9 possibilities. I think we're still pretty far from that. If it were to occur, the restructuring of unfunded pension liabilities/OPEB would likely be the focus. If they were going to pursue strategic default, I assume they would walk away from the spring training stadium (if that hasnt already been woven into MPC refis that make the obligations inseparable)

Former councilmember Joyce Clark is discussing all things debt related and how Glendale has gotten into its financial mess.

A coat with many pockets, Part I - http://joyceclarkunfiltered.com/a-coat-with-many-pockets-part-i/
A coat with many pockets, Part II - http://joyceclarkunfiltered.com/a-coat-with-many-pockets-part-ii/
A coat with many pockets, Part III - http://joyceclarkunfiltered.com/a-coat-with-many-pockets-part-iii/

So, will the city stop digging...well, we seem to have a better idea here than they seem to have by their continued spending actions.

 

[OthmarAmmann]

Municipal Bankruptcy is an extraordinary remedy. The visionaries have dug a massve whole, portions of which are because they have stubbornly/stupidly/corruptly provided public funding to subsidize a hockey business that had already proven time and again that it isn't viable. But, I wouldn't start anaylzing the Chapter 9 possibilities. I think we're still pretty far from that. If it were to occur, the restructuring of unfunded pension liabilities/OPEB would likely be the focus. If they were going to pursue strategic default, I assume they would walk away from the spring training stadium (if that hasnt already been woven into MPC refis that make the obligations inseparable)

Some pretty negative press for the NHL right there, and I would guess it would get a fair bit of national coverage.

 

[Mike Jones]

Thanks to everyone for sharing the numbers and observations here.

In reading through all of this I am left with one question: How does this instability affect the Coyotes' franchise? Are these issues and challenges enough to force them out? This seems to be a pretty tangled web.

 

[MNNumbers]

Thanks to everyone for sharing the numbers and observations here.

In reading through all of this I am left with one question: How does this instability affect the Coyotes' franchise? Are these issues and challenges enough to force them out? This seems to be a pretty tangled web.

Your question is exactly what we are trying to determine. As long as the city does not file for bankruptcy, the team is going nowhere because the lease obligates the city for 4 more years. At that point, it is team option to leave. If they choose not to leave, the lease is good for 10 more years.

What happens as the city moves toward bankruptcy is not clear...

 

[CasualFan]

Some pretty negative press for the NHL right there, and I would guess it would get a fair bit of national coverage.

I used to think so too. However, now I find that the media seems less inclined to disturb revenue producing units like the Sports page.

 

[Mike Jones]

Your question is exactly what we are trying to determine. As long as the city does not file for bankruptcy, the team is going nowhere because the lease obligates the city for 4 more years. At that point, it is team option to leave. If they choose not to leave, the lease is good for 10 more years.

What happens as the city moves toward bankruptcy is not clear...

Thanks. I'm not really good with numbers like this so didn't know what it really meant for the team and its ability to stay.

 

[Llama19]

Former councilmember Joyce Clark is discussing all things debt related and how Glendale has gotten into its financial mess.

A coat with many pockets, Part I - http://joyceclarkunfiltered.com/a-coat-with-many-pockets-part-i/
A coat with many pockets, Part II - http://joyceclarkunfiltered.com/a-coat-with-many-pockets-part-ii/
A coat with many pockets, Part III - http://joyceclarkunfiltered.com/a-coat-with-many-pockets-part-iii/

So, will the city stop digging...well, we seem to have a better idea here than they seem to have by their continued spending actions.

Update, new blog posted:

A coat with many pockets, Part IV - http://joyceclarkunfiltered.com/a-coat-with-many-pockets-part-iv/

According to the post, Glendale has a 33% debt total when it should be at or below 10%.

The debt clock is running on borrowed time...

 

[Llama19]

Related to the section, Team Performance, Coyotes in no rush to contact their own free agents

To quote:

"Of the six unrestricted free agents left on the Coyotes' roster, only one has received a call in the weeks since the season ended expressing interest in his return.

(General Manager Don) Maloney does plan to touch base with his other free agents, but the silence so far could be a sign of the roster change team brass forecast after a second straight non-playoff season.

Source: http://www.azcentral.com/story/spor.../21/coyotes-rush-contact-free-agents/9404319/

 

[Llama19]

Glendale to consider selling some city buildings

To quote:

"Glendale might sell city property to save or make money as leaders continue to cut expenses.

This comes after Glendale has "picked to the bone" its operating costs, City Manager Brenda Fischer said."

Source: http://www.azcentral.com/story/news...dale-consider-selling-city-buildings/9443601/

 

[Tommy Hawk]

Update, new blog posted:

A coat with many pockets, Part IV - http://joyceclarkunfiltered.com/a-coat-with-many-pockets-part-iv/

According to the post, Glendale has a 33% debt total when it should be at or below 10%.

The debt clock is running on borrowed time...

Kinda ironic here posting all this stuff when she was one of the big proponents of getting into the mess.

 

[Mike Jones]

I know this isn't really the Coyotes' fault (At least I don't think it is - I'm not sure I'm reading the numbers well enough to comment either way) but has an NHL team ever helped bring a city to the brink like this?

This is really something to watch.

 

[Fugu]

Kinda ironic here posting all this stuff when she was one of the big proponents of getting into the mess.

I always wondered about that....

 

[MaskedSonja]

In the situation where Glendale had to be taken over by the state of AZ-can someone remind me what sort of legal situation the current lease agreement would be in, should the state decide they couldn't "afford" it in their considerations?

Is the contract ironclad, or would there be provisions at that "emergency" type level where those would be overruled? Would a bankruptcy effectively null and void the contract?

 

[gelu88]

In the situation where Glendale had to be taken over by the state of AZ-can someone remind me what sort of legal situation the current lease agreement would be in, should the state decide they couldn't "afford" it in their considerations?

Is the contract ironclad, or would there be provisions at that "emergency" type level where those would be overruled? Would a bankruptcy effectively null and void the contract?

After reading thousands of posts last year, you'd think I'd remember, but I can't. Was bankrupcy ever brought up in the context of last years agreement? I don't recall it ever doing so.

 

[knorthern knight]

Is the contract ironclad, or would there be provisions at that "emergency" type level where those would be overruled? Would a bankruptcy effectively null and void the contract?

You'd have to check with a lawyer for the final word. I assume that AZ taking over Glendale ("financial emergency") may not be enough to void Glendale's obligations, but Glendale filing Chapter 9 is enough to void their obligations.