Phoenix CVI: It's good to talk these things out

[RandR]

... I can't see how the AMF opponents vote for this. Trial goes ahead, if they are confident in their case, the lease is over and they lose no more money. They vote on this, they lose $6.5M more and that's it.

As confident as they might have been, that was no guarantee that they would win their case. And if winning the case also ultimately led to the Coyotes leaving even sooner than 2 years due to bad blood brought by a court fight, than that's not good for Glendale either.

COG has said repeatedly... they want the Coyotes to stay, but not under the terms of the old agreement. They got that. The financial terms are better, there is now cost certainty instead of banking on promised revenues, and they won't be stuck with 12 more years of the old lease if the Coyotes decided to stay after all. (In other words, the out-clause that kicked in after 5 years for IA has now taken effect for both sides.... they are both free to negotiate an extension or another deal.)

Sure, COG likely tried to negotiate even better terms, but IA doesn't seem to have too much to offer back on their side either so they couldn't squeeze them too tight. They got a negotiated compromise.

 

[MNNumbers]

I didn't obscure anything. If you see this as a victory for IA, that's cool with me. I'm sticking with my assessment that IA just got curb stomped due to LeBlanc being pretty much the worst CEO ever.

IA's surcharges and parking fees amounted to about 5.5M. The rest was sales taxes, etc. The sales taxes will still go to COG.

Therefore, net... City was paying about 9.5M before. That's a 3M savings for next year.

If the reports here are right, and I understand them right, COG then replaces IA for fiscal year 2016-17. Likely that will be SMG or someone, with a different contract. Plus, the has to play there in 16-17, at what would then be a rental agreement with the new manager.

Result for Glendale... 3M savings this year. Better management there after. Pretty good. Plus, the team stays, drawing people to the area for 2 more years.

For IA. Well, they are on their own skill as managers for next year now.
They have the stay there 2nd year and pay rent. They get their share of expansion fees, sure, but that's not from COG.

OVERALL, I would say COG did pretty well. And, I would say IA does Ok, in that they will get to sell a losing team for relo in 2 years, and not incur more losses.
Result

 

[Gump Hasek]

From afar, at first glance this deal appears akin to a separation agreement followed by some mutually agreed upon preliminary divorce terms?

Likely signals a lame duck franchise, in my own view.

 

[BattleBorn]

That's only if survival is the endgame.

Remember the Thrashers? Remember how quickly and smoothly they turned into the Jets? That's the vibe I'm getting from this deal. The NHL met with Ray Bartosek earlier this week and Bill Daly denied it had anything to do with expansion. Not sure how many more dots need to be connected.

Maybe I'm a little pollyanna-ish, but I've got to figure if the endgame is relocation or even if a reasonable person can see that the endgame is very likely relocation, it makes almost zero sense for Glendale to even agree to this. Fighting this thing out in court surely would have cost less than 6.5 million, and they could get a jump on their future arena manager today instead of playing with it for another year and throwing the money that will be agreed to tonight into the hole.

 

[Fugu]

inb4 someone mentions that a Tukwila arena could be completed in 2 years...

I don't think he reads this thread.

Monica Lindstrom ‏@monicalindstrom 3m3 minutes ago

As part of the settlement btw @arizonacoyotes #Glendale #Tindal is no longer part of the Coyotes @AZSports @Ktar923
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That's probably the most shocking result to me. It's too bad the depositions never happened, but COG must have had something that convinced everyone that it was a huge risk for IA to go to court.

 

[TheLegend]

I didn't obscure anything. If you see this as a victory for IA, that's cool with me. I'm sticking with my assessment that IA just got curb stomped due to LeBlanc being pretty much the worst CEO ever.

Your original post gives the appearance that Glendale was out $225M under the old lease in comparison to what the new lease does. I said that's was an obscurity because the reality is it only cost them $127.5M based upon IA performance the last two years (even though we've yet to see the numbers.)

And I never claimed it was a victory of IA. Both sides got something they wanted out of the deal.

Glendale got Tindall out and cut their annual net cost roughly $1.5M/year for the next two years. (edit: make it $3M, yielding to MNN's post above)

IA gave up $8.5M from Glendale but got all the revenue streams, (losing Tindall wasn't a huge loss) and gain some flexibility in attracting non-hockey events.

 

[cbcwpg]

Monica Lindstrom ‏@monicalindstrom 3m3 minutes ago

As part of the settlement btw @arizonacoyotes #Glendale #Tindal is no longer part of the Coyotes @AZSports @Ktar923
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So I wonder if this was a demand from the CoG? Or did IA do this for the PR and say they got rid of a problem going forward?

 

[Fugu]

That's only if survival is the endgame.

Remember the Thrashers? Remember how quickly and smoothly they turned into the Jets? That's the vibe I'm getting from this deal. The NHL met with Ray Bartosek earlier this week and Bill Daly denied it had anything to do with expansion. Not sure how many more dots need to be connected.

Does make sense IF the league wants Seattle, which I think they do, and due to Seattle not being able to meet the expansion deadline. The negotiated term here gives everyone time to work things out, but... I think a Seattle arena would have to get started ASAP to be ready for the 2017-18 season.

 

[Llama19]

Glendale and the Coyotes invoke the C word -- compromise

Source: http://www.azcentral.com/story/laurieroberts/2015/07/23/glendale-coyotes-compromise-hockey/30574493/

 

[Major4Boarding]

Man, Tindall was let go. What did he ever do to warrant that?

 

[TheLegend]

So I wonder if this was a demand from the CoG? Or did IA do this for the PR and say they got rid of a problem going forward?

I'd say it does both.

Hiring Tindall was a huge mistake on IA's part. There was some real bad blood within Glendale that resulted in his departure there.

Plus this all might have been avoided. Don't really think Frisoni was that much an issue.

 

[RandR]

"Much needed certainty"

Sorry Tony, but a two year lease is not certainty, unless the certainty is describing the franchise being moved. The out-clause was bad enough but at least there was a long term lease and maybe a chance it might work. This, a two year agreement, does nothing but keep the relocation speculation going.

You've taken that quote out of context... Here is the full sentence from the team's statement ..

This decision will bring much-needed certainty to our fans and sponsors about our near-term future and an end to the uncertainty brought about through this legal action.

All true.

We know it was highly unlikely, but the public speculation that preceded this settlement did include fan fears of the team leaving in the near term. Even on this board there was a lot of speculation at the time about whether the Coyotes could be forced to move for this upcoming season.

 

[CasualFan]

Man, Tindall was let go. What did he ever do to warrant that?

Zing! So long, Craig.

 

[habsinottawa]

I'd say it does both.

Hiring Tindall was a huge mistake on IA's part. There was some real bad blood within Glendale that resulted in his departure there.

Plus this all might have been avoided. Don't really think Frisoni was that much an issue.

Frisoni was just another bullet in the chamber. You try and get as much leverage as you can, but Tindall was the big fish.

 

[Llama19]

...OVERALL, I would say COG did pretty well. And, I would say IA does Ok, in that they will get to sell a losing team for relo in 2 years, and not incur more losses...

Well, George and Anthony may lose out on 'owning' a hockey team...

Gosbee: It sure was nice buying into 1/30th of the NHL...

Anthony: Eh, it was as good as it gets...

 

[jkrdevil]

So to the casual fan, this would maybe have the right appearance to avoid a lame duck season? To me, I would still avoid full investment in this team if I were a fan in the area.

Well two years they can may e pass of as giving them time to build a new arena. But more likely it is,two lame duck seasons

 

[JimAnchower]

Man, Tindall was let go. What did he ever do to warrant that?

Does he also go to Ferguson now?

 

[Mightygoose]

This new deal will likely pass tomorrow. Any chance it will be unanimous?

Or perhaps we're looking at a 5-2 score again with Chivara and Sherwood voting nyet.

 

[patnyrnyg]

So, they are not going to Seattle?

Cue the conspiracy theorists who claim if this deal was reached last week, Seattle would have submitted an expansion bid.

 

[The Feckless Puck]

So, they are not going to Seattle?

Cue the conspiracy theorists who claim if this deal was reached last week, Seattle would have submitted an expansion bid.

As mentioned above, the current conspiracy theory is pointing to the NHL's meeting with Ray Bartosek of the Tukwila arena effort as the catalyst for the new deal.

 

[patnyrnyg]

This new deal will likely pass tomorrow. Any chance it will be unanimous?

Or perhaps we're looking at a 5-2 score again with Chivara and Sherwood voting nyet.

4-3 in double OT.

 

[patnyrnyg]

Where are you guys seeing 2 years?

 

[TheLegend]

Does he also go to Ferguson now?

I saw what you did there....

 

[ducks2010]

Man, Tindall was let go. What did he ever do to warrant that?

Somewhere someplace Carrie Ann Sitren is raising a glass for 'cheers'. Meanwhile Tindall continues to ask us to just "ignore her".

..."Play with her" he says....

 

[Glacial]

4-3 in double OT.

3-3 with 1 vote coming in via teleconference and being scrambled unintelligibly (assuming intelligible and Glendale city councilmembers can be used in the same sentence).


I'm still trying to wrap my head around the idea of 2 lame duck seasons. The PR from that for the league may be worse than just relocating the team now. And it's 2 years of relocation speculation, an inenviable climate for Coyotes fans as if everything to date wasn't enough for them .