Does anyone know if AEG can sublease the Arena Managemrnt contract to IA? In other words put IA back in charge of GRA with the AMF.
IA may need to rid themselves of Lebeesur and attempt to make a go of it at GRA long term. He should really have not been pouring gasoline on the streets around Westgate while throwing lit matches out the window of his car for the past while.
I find it strange that there are now back-up arena plans when IA tied all of their cans to one apple cart and said no such plans existed. I can't wait to hear of all the new exciting piles of dirt that Tony will be speaking of.
For me its GRA or bust. This will certainly test IA's and the NHL BOG's resolve for the market.
Present lease with AEG seems to give CoG some review rights with anything to do with Coyotes.
Present rent terms with Coyotes:
Team pays 500K rent
City pays 500K annually in arena maintenance/upgrades and this is growing to 1M
Team gets use of arena for practice time (doesn't need separate practice facility)
Team gets free office space
Team gets ONLY game night concessions, etc, which include parking fees.
Team gets 80% of Arena Naming Rights
Present terms with CoG/AEG
City puts a set amount into the operating fund:
5.6M/yr
All arena receipts go into the same fund.
Arena costs are taken from the fund - it's an operating fund.
If Fund is insufficient, it's on AEG to finance the rest.
If, at end of year, there are $$ remaining, they are split between AEG and CoG according to a formula. Details not so important for this post, except that AEG gets first dibs - that is, the first 750K goes to them.
To restore the AMF to the Coyotes would be problematical for several reasons:
1- COG probably doesn't want to leave IA responsible for any record keeping, when they were so remiss earlier about that. This idea is further backed up by the fact that in the first year after the 15M/yr lease was cancelled, the terms were a flat fee paid to IA, with no record keeping required. In other words, COG doesn't believe IA is able to keep good records.
2- Where would the money come from? There is no provision by which AEG can give IA $$ directly from the city, so that kind of 'subsidy' is out. The money would have to come from the operating fund.
3- Since the $$ coming out of the operating fund goes( 1- a piece to AEG, 2- A piece to COG, 3- a completely shared piece to AEG/COG, 4- profit to AEG), then anything AEG offers to IA comes from their pockets, not that of COG. That means that AEG, the operator, would effectively be subsidizing the team. That's very unlikely.
) the way theyve reacted, comments since Friday about how "this wouldve been good for ASU, Tempe & the taxpayers, the fans, the players & the organization, for the
