Phoenix LXXXV: A Bridge to Nowhere

[CC Superfan]

Great summaries by Killion and Mesa! It will be so frustrating if Glendale cows to RSE demands instead of seeing if they can rebuild Westgate without them.

The city is being abused and I despise the league so much for riding them into debt and threatening to leave without yearly cash infusions. Can't Glendale admit they have been suckered and choose instead to break free of the shackles?

A 5 year out-clause might as well be a 2 year clause, because if I was RSE and things didn't improve by year two I'd be planning my exit already.

 

[mesamonster]

It's one thing in RSE wants to borrow money to buy the team and has to show the lenders how they are going to generate revenue to pay these loans off, but it's a totally different thing to tell the lenders that the CoG is going to guarantee those revenues.

Instead of coming out and just giving RSE $15MM in the form of an AMF, the CoG will give RSE $6MM for AMF, but "share" revenues to the tune of $9MM. Someone correct me if I'm wrong, but isn't all of this just another way to get around the Gift Clause? Really, has this all just been four years of trying to defeat the Gift Clause?

You are absolutely correct in your assumptions, just dont tell Councilman Sherwood that!

 

[Wheathead]

I get the idea behing finding alternatives to fund the AMF to the RSE, but if your alternatives depend on revenue...eh, I don't know why either side would be totally cool with that idea. The Coyotes franchise has not been a revenue magnet. Even if the revenues they're taking about don't include tickets, it's still a big risk for both the City of Glendale and RSE to go through with it.

But it's their money, not mine.

 

[cbcwpg]

Great summaries by Killion and Mesa! It will be so frustrating if Glendale cows to RSE demands instead of seeing if they can rebuild Westgate without them.

The city is being abused and I despise the league so much for riding them into debt and threatening to leave without yearly cash infusions. Can't Glendale admit they have been suckered and choose instead to break free of the shackles?

A 5 year out-clause might as well be a 2 year clause, because if I was RSE and things didn't improve by year two I'd be planning my exit already.

Any out clause is giving up before starting the fight. You are already planning your exit strategy before you enter into the agreement.

Given new ownership and a new "vision" will things ever improve to the point of the franchise becoming self sustaining. I could easily see RSE making gains in the sponsor side, private boxes, arena events other than hockey, but the one place I see being very difficult to improve on is the fan in the stands costs. Even at this point if the Coyotes were to sell out every game, given what they charge for tickets, there is no way this team will ever break even. The numbers just don't add up. So without some 30% - 50% increase across the board in ticket prices the revenues just won't be there.

 

[metalfoot]

Still holding out for "Danse Macabre" to be a thread title, but 'sok. Many better ones have been given as we go along.

Really do wonder why it has taken this long to get to this point. I get the optics of the thing, but again, anyone with half a brain and way too much spare time can dig through the entire Phoenix terathread (yes, it's hyperbole) here and connect the dots for themselves. The NHL has given the appearance of committing much more strongly to keeping the team in Glendale than any reasonable effort could expect while at the same time salting the earth so that the market and the viability of the arena itself is virtually dead. Pretty slick. Pretty nasty.


Phoenix LXXXVI: Missed It By *That* Much --Maxwell Smart reference?

 

[cbcwpg]

I get the idea behing finding alternatives to fund the AMF to the RSE, but if your alternatives depend on revenue...eh, I don't know why either side would be totally cool with that idea. The Coyotes franchise has not been a revenue magnet. Even if the revenues they're taking about don't include tickets, it's still a big risk for both the City of Glendale and RSE to go through with it.

But it's their money, not mine.

What's the disclaimer you see on every financial prospectus....

Past performance is not a reliable indicator of future performance

Usually though it's on something that has actually been quite good at making money, but they just want to warn you in case it doesn't make as much money as you were expecting. In the case of the Coyotes, anyone putting money towards this team better pray to their favorite deity that "Past Performance" of revenues generated doesn't continue.

 

[Nordskull]

PHX LXXXVI: "I couldn't stand it any more."

 

[GuelphStormer]

Great summaries by Killion and Mesa!

yes! thnx all!

 

[Killion]

Really, has this all just been four years of trying to defeat the Gift Clause?

... rhetorical question much?

Any out clause is giving up before starting the fight. You are already planning your exit strategy before you enter into the agreement.

Bingo. Flags of false colour hoisted and gone upon conception. Within the DNA itself. Pre-determination. Over before its begun.

 

[madhi19]

PHX LXXXVI:Closed for the weekend, gone fishing!

 

[CasualFan]

24-hour notice posted: http://www.glendaleaz.com/clerk/agendasandminutes/Workshops/Agendas/062113.pdf

 

[GuelphStormer]

24-hour notice posted: http://www.glendaleaz.com/clerk/agendasandminutes/Workshops/Agendas/062113.pdf

what does this mean, CF?

 

[mmajeski06]

Still like Phoenix LXXXVI: There's Always Money in the Banana Stand

 

[CasualFan]

what does this mean, CF?

It means I get to experience the thrill of posting an item to Legitimate News Sticky Thread on the front page of BOH.

 

[rt]

24-hour notice posted: http://www.glendaleaz.com/clerk/agendasandminutes/Workshops/Agendas/062113.pdf

Thank god it is at 9am and not 6pm. I'm getting so impatient.

 

[Mungman]

24-hour notice posted: http://www.glendaleaz.com/clerk/agendasandminutes/Workshops/Agendas/062113.pdf

Huzzah!

Transparancy!...... Oh, wait, it's kinda more opaque than anything isn't it......

I've said it before, and I'll say it again democracy simply doesn't work.

 

[Major4Boarding]

what does this mean, CF?

Means they're:

1. Discussing pending/contemplated Litigation (City Matters)

2. Talking Arena Management Bids

3. Talking RSE's offer

4. Ongoing City Manager Recruitment process

1 and 4 we care not for

 

[rt]

Still like Phoenix LXXXVI: There's Always Money in the Banana Stand

This is an excellent thread title suggesting. "Find Revenue" haha. As if there is a treasure map.

 

[Acesolid]

Based on the threat from nhl saying that stuff needs to be done by friday, this friday meeting might very well be slightly important.

I'd normally say it's a crucial moment, but after so many delays and ''deadlines'' in the past it wouldn't surprise me if we were still here in the exact same position in two weeks.

 

[Donwood]

Tomorrow it would seem they need to get at least close enough to call a vote on the 28th. if not I would think it's over.

 

[Muf]

Next Thread should be "Days of our lives"

 

[Whileee]

It's one thing in RSE wants to borrow money to buy the team and has to show the lenders how they are going to generate revenue to pay these loans off, but it's a totally different thing to tell the lenders that the CoG is going to guarantee those revenues.

Instead of coming out and just giving RSE $15MM in the form of an AMF, the CoG will give RSE $6MM for AMF, but "share" revenues to the tune of $9MM. Someone correct me if I'm wrong, but isn't all of this just another way to get around the Gift Clause? Really, has this all just been four years of trying to defeat the Gift Clause?

I think that previously it was all about trying to circumvent the gift clause. Now it's more complicated, because the COG has a problematic structural deficit and the bond-rating agencies are breathing down their neck (going so far as to cite their penchant for subsidizing an NHL franchise as a reason for downgrading their credit rating). So now, the COG is in a much more sobering position, and they now have to think about how much risk they want to assume that they will blow a bigger whole in their budget.

 

[Whileee]

It means I get to experience the thrill of posting an item to Legitimate News Sticky Thread on the front page of BOH.

Certainly that, CF.

It probably also means that the COG needs to get back to the NHL with some answer on the status of negotiations with RSE. Tomorrow might well determine whether the COG and RSE can "close the gap" to the satisfaction of the city administration and city council.

 

[Whileee]

Tomorrow it would seem they need to get at least close enough to call a vote on the 28th. if not I would think it's over.

If they can't close the gap, I think that the COG will still leave the options open. I expect that they will continue to delay on a definitive decision, forcing the NHL to close the door on the Coyotes in Glendale if they have an imminent internal deadline.

 

[mmajeski06]

Certainly that, CF.

It probably also means that the COG needs to get back to the NHL with some answer on the status of negotiations with RSE. Tomorrow might well determine whether the COG and RSE can "close the gap" to the satisfaction of the city administration and city council.

It'll be interesting to see "we're getting closer" is good enough for the NHL