Speculation: Ownership Saga: Coyote's Renaissance (Read Post #1)

[jdfitz12]

According to Craig Morgan,

Sam Chavira has joined Gary Sherwood and Yvonne Knaack in requesting vote.

Does this mean we have 3 YEA votes.... I believe it only needs 4 votes to pass ?

Where is McCain and Brewer to put pressure on Glendale to get this done.

 

[TeamTourigny]

it wont come to a vote tues unless the votes are there.

 

[rt]

According to Craig Morgan,

Sam Chavira has joined Gary Sherwood and Yvonne Knaack in requesting vote.

Does this mean we have 3 YEA votes.... I believe it only needs 4 votes to pass ?

Where is McCain and Brewer to put pressure on Glendale to get this done.

Chavira wants a vote, but is likely to vote against the deal. He's a supporter of calling a vote, but usually not a supporter of subsidizing hockey in Glendale.

 

[IPreferPi]

Where is McCain and Brewer to put pressure on Glendale to get this done.

McCain did weigh in on Twitter

John McCain @SenJohnMcCain
I totally agree: "Hey, Glendale: Please finish deal for #Coyotes" azcentral.com/sports/coyotes…

 

[mouser]

According to Craig Morgan,

Sam Chavira has joined Gary Sherwood and Yvonne Knaack in requesting vote.

Does this mean we have 3 YEA votes.... I believe it only needs 4 votes to pass ?

Where is McCain and Brewer to put pressure on Glendale to get this done.

It requires 3 votes from council members (or just 1 from the mayor) to request a full council vote on the proposal.

 

[letsgoavs1921]

I just council member Martinez an email saying he voted for the past deals and this was the best one yet. I also reminded him an empty arena is the worst case scenario. This is the response I got

"I have always supported keeping the Coyotes in Glendale and will do everything I can to see they stay. Thank you for your support."

 

[TeamTourigny]

http://www.glendaleaz.com/documents/coyotes--leaseagreementdraft_17319116_6062713.pdf
LEASE HAS BEEN RELEASED

$10/ car parking fee and a $4.5 / ticket surcharge

 

[Sinurgy]

It doesn't make what you are saying any less silly. The Coyotes are not special. The revenue they provide to the city isn't hard to project or track. There are intangible benefits, but not enough to bridge such a monstrous gap. 41 events is less than one per week. A professional management company with performance clauses can't do that? It's not like the NHL has set the bar very high. KDB has posted a compelling argument that shows the league being harmful to the area and mismanaging (either on accident or purposefully) the arena via decreased bookings. Something that can't be explained or solely attributed to the recession.

==========================================

Let's take a trip down the numbers rabbit hole, with CF as our guide:

Why $6m for an AMF?



Why the shell game with the city's credit?



Why are they insisting on guaranteed revenue from RSE?



Why is bending over backwards for the Coyotes stupid?



So does the team actually help the area?



But the Hocking report said...

I feel like you're purposely trying not to understand this but I'll try with an example. Let's say you're thinking of buying a soda, vendor A only carries 12oz bottles while vendor B only carries 16oz bottles. You can't reasonably expect vendor B to sell their 16oz bottle for the same price as vendor A's 12oz bottle.

Now, if it turns out vendor A's bottles are actually 16oz then yeah, that would change things but until that's known, I'm not going to assume that's the case.

To be clear, I'm not using this to say RSE's deal is great, I'm just saying that using $6.5million as the number that RSE should be paying is not realistic unless you can prove SMG would bring similar results.

 

[Mosby]

Looks like the plan is still to rebrand:

The Team Owner shall use commercially reasonable efforts to have the name of the Team changed to the “Arizona Coyotes” as soon as is commercially feasible.

 

[IPreferPi]

Looks like the plan is still to rebrand:

Ugh, still not a fan of rebranding at all.

 

[Howler Scores]

Ugh, still not a fan of rebranding at all.

This guy is

 

[Howler Scores]

The point/counter point memo:

http://www.foxsportsarizona.com/common/medialib/271/glendaleupdate.pdf

Response from RSE....$10 for parking is reasonable compared to other events in the valley. However, their projections to draw an average of 15,000 for the other 23 events a year is ambitious. Glendale has average 7,000 a year for other events based on their rfp docs. Additionally, they plan to collect $15 a car for parking at the other non-hockey events...another thing that is ambitious. Unless they are projecting using the system currently in place for Lot G; but that lot only holds a few hundred cars.

http://www.glendaleaz.com/documents/MemorandumtoDickBowers.pdf

 

[rt]

Having a look at some of the major points of this deal, I could see the council approving it. It's not a good deal, but it's not half as rapey as Jamison's deal.

Seriously, this could happen. CoG does assume all the risk, and the don't enjoy any freedom. That said, they've never had an offer that was any different in those respects. This one, though, doesn't require a 100M gift right off the hop, or 15m in AMF with NOTHING going back their way. This deal actually tries to cover some of those losses and share a little of the wealth (assuming there's anything to share).

It's a haphazard proposal, completely held together by enormous debt and league handouts. It's very, very likely to fail. That said, it is soooooooooo much better than Jamison's offer.

If the council is flat out scared to kick the NHL out of Glendale, I'd say they now have an excuse not to.

 

[rt]

The point/counter point memo:

http://www.foxsportsarizona.com/common/medialib/271/glendaleupdate.pdf

This looks like a negotiation. They are still negotiating.

 

[mouser]

http://www.glendaleaz.com/documents/coyotes--leaseagreementdraft_17319116_6062713.pdf
LEASE HAS BEEN RELEASED

$10/ car parking fee and a $4.5 / ticket surcharge

Perusing:

- Lease length not listed, until sometime in 202x. [CoG release says 15 years]
- 5+ Year Early Termination clause available to owner if team loses $50m cumulative. Note: could invoke in year 6, 7, etc.
- 20% of revenue from Arena Naming Rights to go to CoG. 100% of revenue to CoG for any new internal expansions (theater/stage/venue) with Naming rights or signage related to Concert events.
- Parking rates $10/hockey event, $15/non-hockey event. Owner receives first $20k of Parking Profit for a hockey game, CoG receives the rest. CoG receives 75% of Parking Profits for pre-season, playoff, all-star and non-hockey events. CoG receives 100% of Parking Profits for each City Event. Parking is operated by the Arena Manager.
- City ticket Surcharge for events:
-- $3/ticket if <15k average attendance in season
-- $3.25/ticket for 15,000 to 15,999
-- $3.50/ticket for 16,000 to 16,999
-- $3.75/ticket for 17,000+
-- $5/ticket for non-Hockey Events
- Supplemental $1.50/ticket surcharge for all events placed into escrow. CoG has right to draw from this fund if city received less than $8.5m in total revenue from operations at the arena during the preceding fiscal year.
- $15m/year management fee.

Notably I'm not seeing any mention of non-Hockey event count guarantees or targets. [CoG release suggests a target of 320,000 tickets to non-hockey Events, the equivalent of 18-19 sold out events.]

 

[Mosby]

Ugh, still not a fan of rebranding at all.

Nothing says revenue stream like fans buying new jerseys

 

[rt]

Nothing says revenue stream like fans buying new jerseys

Yep. Not only is it inevitable, it's probably absolutely necessary.

 

[IPreferPi]

Nothing says revenue stream like fans buying new jerseys

Didn't say I'm against new logos/jerseys - but we can get those without changing to the Arizona Coyotes. Just doesn't quite work for me like the switch from Phoenix Cardinals to Arizona Cardinals. But I'm sure I'll get over it at some point.

 

[Sinurgy]

The point/counter point memo:

http://www.foxsportsarizona.com/common/medialib/271/glendaleupdate.pdf

This part stood out to me, not only can RSE bail in 5 years but if they wanted to purposely tank the team (they can't be that evil can they?) they could bail even earlier.

The proposed contract can be terminated by Renaissance if their cumulative losses reach $50 million, and, in any event,after five years.

 

[IPreferPi]

This part stood out to me, not only can RSE bail in 5 years but if they wanted to purposely tank the team (they can't be that evil can they?) they could bail even earlier.

A very legitimate concern.

 

[mouser]

This part stood out to me, not only can RSE bail in 5 years but if they wanted to purposely tank the team (they can't be that evil can they?) they could bail even earlier.

The PDF proposal says it has to be 5+ years AND $50m+ loss.

3.3 Early Termination. Notwithstanding the other terms and provisions of this
Agreement, Team Owner and Arena Manager jointly shall have the right to terminate this Agreement
without penalty or cost by delivery of written notice to the City at any time following the fifth (5th) year
after commencement of the Term when (a) neither terminating Party is in material default of any term or
condition of this Agreement, and (b) Team Owner has incurred a cumulative Operating Loss of
$50,000,000 or more, calculated as the sum of Team Owner’s operating income/loss for each of the Fiscal
Year periods then ended, provided that if such notice is given during any NHL hockey season, the
termination shall not be effective until the end of the applicable hockey season, including all Home
Games associated with the season. In this regard, Team Owner shall deliver to the City, not later than
ninety (90) days following the end of each Fiscal Year, a statement (certified to the City by the Team
Owner’s chief financial officer or the Team Owner’s certified public accountants, at the option of Team
Owner) of the Team Owner’s claimed operating income or loss for such Fiscal Year, which statement
shall be subject to audit by the City and shall thereafter be conclusive upon Team Owner with respect to
the cumulation of Operating Losses, if any. Notwithstanding the foregoing, there shall be no right of the
Team Owner or Arena Manager to terminate this Agreement pursuant to this Section 3.3 except as
provided in Section 3.4.

 

[rt]

This part stood out to me, not only can RSE bail in 5 years but if they wanted to purposely tank the team (they can't be that evil can they?) they could bail even earlier.

No, after year five. It's basically saying it could be after year five OR six OR seven, etc.

Not like they've got one chance to bail after five, and then they're locked in for the full fifteen. That's what they were clarifying. It's not year five OR year fifteen. It's an option in years five THROUGH fifteen.

 

[Sinurgy]

The PDF proposal says it has to be 5+ years AND $50m+ loss.

Ah ok, the memo made it sound like the $50 million in losses could trigger the out clause before a 5yr period. Thanks for clearing that up.

A very legitimate concern.

I thought so but mouser pointed out that in the actual proposal (I was going off the initial memo post) it says that the $50 million does not come into play until after 5 yrs. So RSE would have to wait 5yrs AND lose $50 million before the out clause would kick in. Not great but certainly much better than I originally interpreted.

 

[IPreferPi]

Ah ok, the memo made it sound like the $50 million in losses could trigger the out clause before a 5yr period. Thanks for clearing that up.


I thought so but mouser pointed out that in the actual proposal (I was going off the initial memo post) it says that the $50 million does not come into play until after 5 yrs. So RSE would have to wait 5yrs AND lose $50 million before the out clause would kick in. Not great but certainly much better than I originally interpreted.

Yeah, just saw mouser's clarification after posting that.

 

[Howler Scores]

I think the breaking news in all of this is in regards to the new "Small Stage Company".