Phoenix LXXXVII: Hotel Arizona

[madhi19]

How much is the loan from loan shark err Fortress?

$170MM wrong it $120MM and yes at 9% even with $15MM a years from Gongdale RSE can barely service it.

 

[wunderpanda]

$170MM and yes at 9% even with $15MM a years from Gongdale RSE can barely service it.

$20 service charge per ticket was the estimate
http://www.fieldofschemes.com/2013/...-true-would-require-20-in-surcharges-per-fan/

 

[Whileee]

Probably already known on here but the Fortress loan ... 9% interest rate

http://www.arizonasports.com/43/1644230/Breaking-down-the-Phoenix-Coyotes-ownership-situation

9%!! If true, it raises two questions... 1) How can someone get in on the Fortress action on this? 2) How easy would it be to tie this whole transaction up, put a bow on it, and serve it with cupcakes to the GWI for a gift clause challenge?

Basically, the COG is being asked to provide funds to assist a private business to obtain a loan (with 9% interest) to purchase an NHL franchise, in return for access to non-guaranteed revenue streams. It seems like the COG will be helping three private entities in one deal (RSE, Fortress and the NHL).

 

[Free Edler]

More GWI sabre-rattling, I see.

 

[gstommylee]

$170MM and yes at 9% even with $15MM a years from Gongdale RSE can barely service it.

170m is the total sale price. 80m is the actual loan.

 

[wunderpanda]

More GWI sabre-rattling, I see.

More of a form letter

 

[Whileee]

$170MM and yes at 9% even with $15MM a years from Gongdale RSE can barely service it.

No wonder some are seeing this as a deal designed for the short-term in Glendale, followed by a flipping of the franchise to another location once the ground is prepared.

 

[madhi19]

170m is the total sale price. 80m is the actual loan.

That 80MM is the NHL loan I confused the purchase price with the 120MM fortress loan.

 

[Donwood]

That 80MM is the NHL loan I confused the purchase price with the 120MM fortress loan.

So 11 million JUST to pay interest, let alone anything on the principal.

 

[superdeluxe]

Holy cow, what a mess that is.

 

[Donwood]

Paul Giblin ‏@PaulGiblinAriz 54s
#Glendale will not release the deal points of the emerging #Coyotes agreement today. City Council will meet in private again Tuesday.

 

[Whileee]

So 11 million JUST to pay interest, let alone anything on the principal.

Holy cow, what a mess that is.

So Gosbee's play is not so much to own an NHL team, but to use the Coyotes situation to secure a 9% return on investment for Fortress, bankrolled by the COG, with an NHL franchise as collateral.

 

[MaskedSonja]

No wonder some are seeing this as a deal designed for the short-term in Glendale, followed by a flipping of the franchise to another location once the ground is prepared.

So, speculation wise, what are the...."speculative" odds among some as to how long this "deal" lasts before RSE goes the "we can't afford to do this anymore" route and then goes to flip the team? I mean really this is sounding more and more like they're telling Yotes fans "Oh, yes we're aiming to keep the team in Glendale, but we might have to ditch after x amount of years"

What variable is the x? 2 years? 3?

 

[superdeluxe]

can that 11 million interest payment, how long can that sustain itself before this whole thing collapses, even if the COG agrees?

 

[Killion]

9%!! If true...

So 11 million JUST to pay interest, let alone anything on the principal.

Correct. I though you guys were aware of all of this no? We discussed the interest rate when it hit via that Forbes article a few weeks ago.... so ya, 9% Non-Reconstituted Juice on a Hundred & Twenty Million Simoleons' Baby. Yer $15M Arena Management Fee? Covers the interest, barely touch's the principal. How does the deal ever fly past the BOG's? Cant believe they'd approve it.

 

[Donwood]

can that 11 million interest payment, how long can that sustain itself before this whole thing collapses, even if the COG agrees?

I give them one year, two tops

 

[madhi19]

So, speculation wise, what are the...."speculative" odds among some as to how long this "deal" lasts before RSE goes the "we can't afford to do this anymore" route and then goes to flip the team? I mean really this is sounding more and more like they're telling Yotes fans "Oh, yes we're aiming to keep the team in Glendale, but we might have to ditch after x amount of years"

What variable is the x? 2 years? 3?

The no interest loan with the NHL is for 5 years. So Glendale will sink another $75MM in this mess on top of the $50MM and the arena bonds! I got to give it to Gary he really know how to suck a town dry.

 

[Zorbane]

Paul Giblin ‏@PaulGiblinAriz 54s
#Glendale will not release the deal points of the emerging #Coyotes agreement today. City Council will meet in private again Tuesday.

Anyone know what time the meeting will start?

 

[superdeluxe]

I give them one year, two tops

So wtf are we doing here then. Move it somewhere and be done with it, whether Seattle or QBC.

 

[gstommylee]

Anyone know what time the meeting will start?

1:30pm from what i saw.

 

[Donwood]

I guess Glendale will table the offer Tuesday,

I can just visualize Sherwood calling Bettmans bluff followed the next day with a press conference in Quebec. Bettman" We're pleased to be back in Quebec City,"

Then the lights dim and Bettmans voice suddenly sounds like something out of the exorcist "And to Mr. Sherwood...Nobody ***** with Bettman understand!

The lights go back to normal and so does Bettman's voice. " we look forward to many years of no drama in QC.

 

[gstommylee]

I guess Glendale will table the offer Tuesday,

I can just visualize Sherwood calling Bettmans bluff followed the next day with a press conference in Quebec. Bettman" We're pleased to be back in Quebec City,"

Then the lights dim and Bettmans voice suddenly sounds like something out of the exorcist "And to Mr. Sherwood...Nobody ***** with Bettman understand!

The lights go back to normal and so does Bettman's voice. " we look forward to many years of no drama in QC.

i kinda doubt bettman would do that.

 

[Mightygoose]

Paul Giblin ‏@PaulGiblinAriz 54s
#Glendale will not release the deal points of the emerging #Coyotes agreement today. City Council will meet in private again Tuesday.

More stall tactics. Nothing there saying they will release the deal points tomorrow either.

 

[Donwood]

i kinda doubt bettman would do that.

Well it was meant as humour, kind of thought the Exorcist voice would have given that away.

 

[gstommylee]

Well it was meant as humour, kind of thought the Exorcist voice would have given that way.

Sorry missed the exorcist part of it. Although i could vision bettman as an auctioneer trying to put Seattle vs Quebec for higher sale price.