sawchuk1971
Registered User
- Jun 16, 2011
- 1,494
- 509
FWIW....
The Tucson press conference with Patterson has been posted to the Roadrunners' site..... hopefully sans the issues with the Facebook feed.
http://tucsonroadrunners.com/news/?article_id=530
Interesting. Thanks TL.... Love the Roadrunners logo, merchandise..... yep..... like that lil birdie.... desert colors..... and you just cost me $148.75
Arena revenue triples in AEGÂ’s first year
To quote:
"After 14 years of operations, the city may finally see some profit from the city-owned arena after AEG made a surprise presentation about their first year of running Gila River Arena.
“We are proud to announce that we are giving back to the city for the 2016-17 year the amount of $1,621,508,†said AEG Facilities Gila River General Manager Dale Adams during the Aug. 15 workshop. “So, this $1.6 million is opposed to the (projected) $500,000 and we hope it means success and we look to make the arena even more successful and this can be a positive return in the future.Ââ€
Over the past three previous years, with IceArizona managing the arena and the city paying $36.5 million in management fees over that time, the city still lost $22 million from the arena. In the first year with AEG, the city had projected profiting $1,046,744 with the city to receive half in the profit-sharing plan ($523,372). Actual bottom line ended at $3,243,016, which is why the city received a payment of $1,621,508."
Source: http://www.glendalestar.com/news/article_8c2c3564-876f-11e7-abd6-1f0f60b65c84.html
Since we know what the lease actually looks like, we know that this isn't as good as it sounds.
Since we know what the lease actually looks like, we know that this isn't as good as it sounds. The city begins by putting 5.6M into the operating fund. This is the portion that is distributed between AEG and COG of what is left of the operating fund at the end of the fiscal year.
That means that COG paid 5.6M. City was reimbursed 1.6M. AEG kept 1.6M and the remaining 2.4M is operating losses.
Do with that what you will, but that's the actual bottom line....
It's titanically better than IceArizona's stewardship.
It's titanically better than IceArizona's stewardship.
Anything was going to be better than IA's arena management capabilities.
Since we know what the lease actually looks like, we know that this isn't as good as it sounds. The city begins by putting 5.6M into the operating fund. This is the portion that is distributed between AEG and COG of what is left of the operating fund at the end of the fiscal year.
That means that COG paid 5.6M. City was reimbursed 1.6M. AEG kept 1.6M and the remaining 2.4M is operating losses.
Do with that what you will, but that's the actual bottom line....
Update: The Facebook feedback is awful (both video and audio), but CEO Steve Patterson was asked about the arena situation...he stated they are at the very beginning of that process...
I did say not long ago that he acted like they were not in a hurry.... did I not???
Yes, I agree he's sure not acting like they're in a hurry
Acting being key, but really it's a different message from a different messenger.
After the disaster from LeBlanc's handling of this they sure need something to present and saying they're at the very beginning....a polar opposite from super progressed means they have to keep a lid on expectations.
At some point they'll need to have something to present as some options from last year have already been ruled out.
If they're going to legislature route again when does pre-filing start? It was Nov. 14 last year so perhaps there's nothing on this matter until then.
Oh my..... opening night in Oklahoma????
Last time it was Florida IIRC..... who knows where they might pop up next???? Now we need a joke wall with a map of North America and doors for every state and province.
So...with a new singular majority owner, a new coach, and a new CEO...this seems perfectly reasonable...
(cue the locomotive references in 3....... 2....... 1........ )
So...with a new singular majority owner, a new coach, and a new CEO...this seems perfectly reasonable...
Glendale losing less on Gila River Arena, but what if Coyotes leave?
To quote:
"Glendale's Gila River Arena posted one of its best seasons financially since 2010, but the city still saw a net loss of $4 million on arena operations in fiscal year 2017.
That's a sizable improvement from a net loss of just under $10 million in fiscal 2015 and a net loss of $22.8 million in fiscal 2011.
"We are definitely going in the right direction," Glendale Mayor Jerry Weirs (sic) said.
Glendale City Manager Kevin Phelps said he's hopeful a long-term deal with the team can be brokered, particularly as the team is under new leadership. Phelps said he met with Patterson to discuss how the city and team could work together.
Phelps said they discussed general ideas, but didn't touch on concrete plans for the future, likening the meeting to a first date.
"It's usually not a good idea to start talking about 'when do we get married and how many children are we going to have?' " Phelps said.
Gila River Arena Manager Dale Adams said AEG is in active discussions with the team but said the future remains uncertain.
"I don't know if the Coyotes are going to stay, leave or do anything else," Adams said. "I'm assuming they're staying for the time being because I think that's what we have to do; that's what's in front of us and I have no indication to feel like they are going anywhere else.""
Source: http://www.azcentral.com/story/news...fit-arizona-coyotes-leave-glendale/574681001/
So according to the article the taxes generated from Westgate cover 75% of the bonds on the arena. So its pretty reasonable to think that had Westgate been built out to its original vision the deal would have been a win for the city.
That's what both Ellman and the city thought back in 2001 when the economy was booming.
IIRC..... the original Westgate City Center was slated to be close to a billion dollar project at build out. With nearly 8 million square feet of retail plus office and housing. So Glendale's contribution of the arena amounted to less than 20% of the total project cost.
Had the project been built to full completion it wouldn't had mattered if the Coyotes lost money to Ellman and Moyes since profits off the rest of the project would have more than offset it. Glendale would've had plenty of income from the sales taxes to cover the bonds. Everyone is happy....
But it didn't turn out that way.
Ahhh...history...
Westgate was suppose to be only 1.6 million square feet but not nearly a billion dollar project in and of itself...however, with Ellman, what you saw was what you got...
Ellman offers ‘little-known' facts about Glendale connection
To quote:
"Turning to Westgate development, Ellman said plans have changed. What was once slated to have 1.6 million square feet of commercial/residential space has been modified and changed to 6.5 million square feet, a combination of sports, entertainment, marketing and urban development.
All of the financing for the entire project has been finalized, Ellman said. Between the stadium, arena, Phase I of Westgate, Trammell Crow, the condominiums and Cabela's across the street, Ellman said the investment totals $1 billion."
Source (PDF): http://themcgareygroup.com/02.6.1-News_Items/westgate/060519 Ellman offers.pdf
And...Timeline: The Arizona Coyotes in Glendale
Source: http://www.azcentral.com/story/news...rizona-coyotes-in-glendale-timeline/28037641/