Team name to be changed to Arizona Coyotes. New logo maybe?
http://slapshot.blogs.nytimes.com/2010/12/18/take-coyotes-off-list-of-teams-likely-to-move/
Why?
Thread Title:
Glendale approves new Lease Thread Title
Team name to be changed to Arizona Coyotes. New logo maybe?
http://slapshot.blogs.nytimes.com/2010/12/18/take-coyotes-off-list-of-teams-likely-to-move/
“I don’t expect Goldwater will sue and win,†Hulsizer told The Arizona Republic.
Probably more a nod to Glendale than anything else on the name change. The local NFL team did the same change a few years back and the MLB team has always been Arizona.
Section 8.1.2 of the draft agreement lists the not less than 5,500 parking spaces as the “City Parking Areaâ€
Section 8.1.5 designates “not less than 500 parking spaces of the City Parking Area as the Team Parking Area, which shall be reserved only for the Team, the Arena Manager and their designees.â€
Section 8.1.1 seems to exclude the Team Parking Area from the Arena Parking Rights
Section 9.9.1 shows that the $100,000,000 payment is for the Arena Parking Rights
So, here it is...are they paying for the rights to 5,500 spots or 5,000?
I am in agreement with those in agreement that the biggest legal hurdle in the agreement is the funnelling of operating expenses charading as “Arena Management Feesâ€. But I am hoping someone here can clear up a question I have on the parking arrangement. I asked a few days ago, but I haven’t had a response. So, now that I’ve stuffed myself with enough cookies to fill the crushing loneliness and despair, I am willing to try again!
Section 8.1.2 of the draft agreement lists the not less than 5,500 parking spaces as the “City Parking Areaâ€
Section 8.1.5 designates “not less than 500 parking spaces of the City Parking Area as the Team Parking Area, which shall be reserved only for the Team, the Arena Manager and their designees.â€
Section 8.1.1 seems to exclude the Team Parking Area from the Arena Parking Rights
Section 9.9.1 shows that the $100,000,000 payment is for the Arena Parking Rights
So, here it is...are they paying for the rights to 5,500 spots or 5,000?
Please correct me if I am wrong, but isn't the $17M going to the ownership group for operating the arena offset by the operating costs? If my understanding is correct, does anyone know what the operating costs are annually?
My point is that the $17M may be more defensible if it is offset with the risks undertaken that would include the operating expenses. Am I totally off base here, or is it just not clear from the lease documents? I have read media reports that could be interpreted as including the operating expenses as a leasee responsibility, and media reports making the $17M sound like a pure payment for providing arena operation managment but the costs all still fall on the arena owner Glendale.
I believe you are wrong, so I will correct you. Let's assume for a second that Scruggy is correct and the operating costs on the arena are $17 million. Let's ignore the basic idea that those costs will decrease if and when the Coyotes go away.
This lease calls for the city to:
- pay $17 million a year for "arena management" to Hulzy
- not pay the operating costs on the arena of (let's assume for now) $17 million
- give up all rights to revenue from non-hockey events at the arena
So, MH gets to book acts at the arena, pocket the revenue, pay the operating cost, and pocket a $17 million fee.
If the Coyotes left, they could:
(a) manage the arena themselves and keep all non-hockey revenue, then pay for the operating costs themselves, or
(b) pay someone a nominal fee (around $1 million) to manage the arena and that firm would keep most of the revenue while covering most of the operating costs
The city is not only paying $17 million to Hulzy, they are also giving up rights to any and all revenues from non-hockey events (with a few exceptions that I'm sure someone will point out). In a sense they are double-paying Hulzy to manage the arena - he keeps revenue generated, and he keeps $17 million in management fees. It is quite easy to prove that outside parties would be willing to manage the arena for much less, and/or keep the revenues and cover the operating costs themselves.
The comments about the $17 million fee offsetting the operating costs of the arena are disingenuous at best, and deliberately misleading. Attempting to confuse people. Remember when MH put up $25 million and the city announced it had somehow escaped from having to pay $25 million in losses? Yeah, that wasn't exactly accurate either. The COG is grasping at straws. They can't actually explain how this benefits them, so they throw a whole bunch of numbers into their fact sheets hoping everyone will fall for it. I don't think it worked for Goldwater.
Sounds a lot like the city only gets 5,000 spaces. 500 parking spots for the team? So every player and front office staff person gets about 7 spots each. Good deal. In theory that amount of parking spaces at a suburbuan Glendale mall is worth about $11 million. Sweet deal for Hulzy to get that for free!!!
So the operating costs do offset what the Owner gets as a "fee". That was my question. Thanks for answering it. The Goldwater Institutes potential concerns aside, my only point was that the owner doesn't pocket a fee AND the city still pays the operating expenses. He gets a fee, and takes the risk the fee will more than offset the expenses of arena management. With every new event the operating costs increase marginally. I wonder if anyone knows what the "nut" is just to keep the building operational. I have heard wide ranging numbers from less than $10M up to $18M. If we are talking about less than $5 - $10M a year, I'm not so sure this is the GI's best argument. It seems buying the right to sell parking for $100M is what people are focused on down here.
Sounds a lot like the city only gets 5,000 spaces. 500 parking spots for the team? So every player and front office staff person gets about 7 spots each. Good deal. In theory that amount of parking spaces at a suburbuan Glendale mall is worth about $11 million. Sweet deal for Hulzy to get that for free!!!
Quote from the article
So he expects them to sue?
This should give hulz about 300/350 premium spots to lease out or package in with suites. Dirty.
Ah, but 8.1.1 does attempt to shuttle that money back to the City..."All revenues, if any, received by the Arena Manager or the Team arising out of the use of the Team Parking Area shall be retained by or remitted to the City in accordance with procedures mutually agreed to by the Team and the City."
But, if they're suite/parking bundles, I s'pose Hulzy can argue the parking was thrown in for free.
Personally, I'm more interested in seeing what happens if Goldwater decides to sue/challenge/injunct/whatever at all.
What is the timeline like for these kinds of things? Days, weeks, months?
If this thing goes past January 1st and and there's still no end in sight (or at least not a guaranteed end - meaning there's a relatively good chance Goldwater might win), what would the NHL's course of action be?
My feeling is that after Jan. 1st, the rules of the game will have have changed. Given that the NHL will finally be allowed to talk to out-of-town interested desiring to relocate the team, we'll be able to finally be able to gauge how committed they are to keeping them in Glendale.
Procedures mutually agreed to by the team and city
Anyone know what those are?
Procedures mutually agreed to by the team and city
Anyone know what those are?