It was very sloppy. To use reported attendance as the basis for a projection that defends a bond issue of $125m is beyond amateur. I know I can't claim it to be intentionally misleading or intentionally deceptive, etc., but I can criticize it for failing to check the figures used that are the cornerstone for the entire projection!
The positive to all of this is that I think we now know have some insight into what was going on behind closed doors in the negotiations between Hulsizer and Glendale. Here is "myth" about this ---Reader's Digest version.
Hulsizer: "I will consider purchasing the Coyotes and signing a long-term lease at the Jobing.com, but I am going to require substantial subsidies for both the purchase of the team and to offset operating costs. Think about the Reinsdorf MOU as a starting point."
Glendale: "What? We've already determined that there is no way that a CFD could..."
Hulsizer: "Did you hear me mention anything about a CFD? I am expecting Glendale to provide this directly."
Glendale: "Gulp!"
Hulsizer: "I've come up with some innovative ideas about how you can do this and avoid the gift law. To cover operating losses you could pay me a nice 'arena management fee'. To help me with the purchase of the Coyotes, I could sell you the rights to parking revenues at the Jobing.com for the next 30 years."
Glendale: "Hmmmm... the arena management fee seems like a reasonable idea, but do you actually own the parking rights? Couldn't we just give you rights to future parking revenues generated at the Jobing.com?"
Hulsizer (grinning broadly): "Why would I want to take a chance on what happens to the parking situation around the Jobing.com over the next 30 years? For all I know, there might be all sorts of new developments and transportation options that will make it more difficult to generate revenue in the next few decades. No thanks. I want the money up front".
Glendale: "Well, this is a new idea. We'll need to think about it."
Bettman: "You have until tomorrow (the 15th) to agree 'in principle'. We're preparing our operating loss statement for the withdrawal from the escrow account, but might reconsider if we see 'real progress' by tomorrow".
Glendale: "Gulp... okay, we can agree 'in principle', but we'll need to crunch the numbers to see what we can do."
Hulsizer and Bettman: "Take your time. You have until the 15th, next month to come up with the financial plans. In the meantime, we'll alert the media that we have reached a 'conceptual verbal agreement'".
Glendale: "Ummmm, what's that?"
Hulsizer and Bettman: "It doesn't matter, but it'll keep folks thinking positive thoughts."
A month later....
Glendale: "Well, we've crunched the numbers and determined that the arena management fee could maybe go as high as $2-3 million per year."
Hulsizer: "Well, I think you'll have to recheck your analysis and come up with something better."
Glendale: "Gulp... what did you have in mine."
Hulsizer (pulls out a tattered newspaper article from his suit pocket): "Well, according to Mayor Scruggs, it would cost the city $18 million per year to run the Jobing.com. So, let's start there for the next several years."
Glendale: "What?!?!?!? Are you joking? How could we ever justify that?"
Bettman (on his cell phone): "Just a minute Mayor Scruggs, I have TNSE on the other line..."
Glendale: "Okay, I guess we'll have to find a way to 'sell' the $18 million arena management fees. On the parking, we've had a very experienced and reputable firm assess the future revenues of parking. The net present value is in the $30-50 range. That seems high for us, and we're still not sure why we need to purchase this from you, but we might be able to justify it."
Hulsizer (grinning broadly): "I was thinking about something in the neighbourhood of $100 million."
Glendale (turning pale): "What??? But, but, but... our consultant's assessment values the parking at much less."
Hulsizer: "Find another consultant. And remember, whoever you hire, the answer is $100 million."
Glendale: "I'm not sure we can do that..."
Bettman (with a cross look on his face): "Look, you have until mid-December. Otherwise, it's 'Adios Coyotes'". Am I clear?"
Glendale (despondently): "Perfectly."
Bettman (grinning broadly): "Great. We'll announce that things are progressing well and a new deal is imminent. Bill, have you got the number of those Atlanta Spirit guys. I am getting really ticked off at them whining about no new investors, and I want to give them a piece of my mind about the low attendance figures there."