Phoenix XCVI: The Government You Deserve ...

[Puckschmuck*]

Owners have an out

They just voted down the out clause tonight, did they not?

 

[FrailSwan]

The Coyotes aren't completely out of the woods as for relocation this year, right?

In 5 years if it's not going good, the'll choose to relocate themselves. That's under the assumption that they won't/can't liquidate.

 

[Del Preston]

Jones at the end was pretty awesome, calling out the four who voted yes.

 

[meedle]

Funny how no one mentioned that they haven't made any money since they got there basically. And your betting on something succeeding? People really need to wake up.

 

[MNNumbers]

Wait a second, if there is no OUT clause anymore, then how is this a 5 year deal only? should it not be 15 years?

RSE retained its out clause right. CoG volunteered to give up theirs. In return RSE, who has now hired Global Spectrum to manage the non-hockey event side of the arena, has guaranteed CoG that they will spend no more than 6M/yr average over the first 5 years, IN THE EVENT THE TEAM EXERCISES ITS OUT CLAUSE

This means:
1) Glendale could spend up to 15M/yr for 5 years (75M total) and then be reimbursed 45M if the team relocates, for example. This would be a case of RSE/GS playing with Glendale's money before giving it back to them.

or

2) In the event, and I would love to know if this could actually happen, that the City loses lots of money, but somehow the Yotes make money and decide to stay, CoG is on hook for the lease they signed for the full 15 years.

I think the most likely thing to happen is that the team is such a money loser, that the exercise their out clause, pay Glendale back, and leave for somewhere else.

 

[Puckschmuck*]

The owners have an out-clause, the city just doesn't.

That is what I asked and was fed the wrong information. Sorry.

 

[BnGBear1970]

Well, RSE/IceEdge (why play around, we all know Gosbee is barely involved) have a week to commit to this D&G turd and about four more to close the sale. And in the interim, they have to hope it doesn't get the signatures Ken Jones will almost certainly start gathering tomorrow.

Hmm, Lloyd Christmas was right, they DO have a chance.

 

[BDEuph]

I have no skin in the game, I live in St Louis & am a Blues fan and STH. But what I am is a Former Fire Department Paramedic and former member of IAFF and what the Councilman Chivera (or what ever that so-and-so's name is) did was stab is fellow FF and IAFF members in the back.

I hope he is kicked out of the FD and ostracized from ever being a FF again. All FF past and present should be beyond pissed right now.

 

[FrailSwan]

They just voted down the out clause tonight, did they not?

Right. They amended that out of the deal.

 

[Glacial]

So how much is Glendale paying every year? $15M or $6M? What are the terms? Only revision I noticed was taking out the out clause, leaving Glendale: no way out.

When are the bond rating companies going to speak? I hope they say something tomorrow.

 

[Puckschmuck*]

RSE retained its out clause right. CoG volunteered to give up theirs. In return RSE, who has now hired Global Spectrum to manage the non-hockey event side of the arena, has guaranteed CoG that they will spend no more than 6M/yr average over the first 5 years, IN THE EVENT THE TEAM EXERCISES ITS OUT CLAUSE

This means:
1) Glendale could spend up to 15M/yr for 5 years (75M total) and then be reimbursed 45M if the team relocates, for example. This would be a case of RSE/GS playing with Glendale's money before giving it back to them.

or

2) In the event, and I would love to know if this could actually happen, that the City loses lots of money, but somehow the Yotes make money and decide to stay, CoG is on hook for the lease they signed for the full 15 years.

I think the most likely thing to happen is that the team is such a money loser, that the exercise their out clause, pay Glendale back, and leave for somewhere else.

Thank you for clearing things up for me.

 

[SchultzSquared*]

WOW how did they pass that, holy ****. they are gone automatically in 5 years

Nope... not the way RSE will play it...

See genius is that RSE has the OPTION to call it at $50M losses after five years... they don't have to... they don't have to help the city if it starts drowning...

RSE could do nothing positive for the next fifteen years and Glendale will eat the full brunt of it... brilliant work by one group... not so much by the other...

 

[Phil Parent]

The beauty of it is that RSE needs a whole lot of help to buy the team, and after they have bought it, they have no money to run it or do payroll. And the team isn't making any money.

So I'm thinking they will own it one season before it goes back to the NHL.

 

[12ozPapa]

That's a total lie. Especially the ones with the Canadian flags.

Overall, I haven't seen a lot of posts pointing to that being the reason people are annoyed.

I'm a fan of the Ducks, so I understand the expansion/southern team treatment. Fact is, the Coyotes have not made any profit in what, 17 years or something? Then everyone finally gets to see this Glendale council and how terribly mentally small they are? I think it's silly to say no that can't be the reason, it must be because they are Canadian.

That may play a part, but c'mon, watching tonight, that sealed the deal.

And really, I don't know why I even care - I'm not Canadian and I actually want to Coyotes to stay, just not like this.

 

[DryIslandBartender]

Need to write a letter before bed time explaining to the Glendale city council why I need $15million to uhhh...start and run an ice cream truck empire.

Wonder how many people are moving down there and try to rip off COG after tonight's gong show.

 

[go_leafs_go02]

This isn't over. League might not feel comfortable with RSE's finances and may walk.

Stuff will go down in the days to come.

 

[ghdi]

They just voted down the out clause tonight, did they not?

The city's out clause. The team still has one.

 

[EvilCoop]

We should give the Yotes a 2 year HF Probationary Period, that mean 2 more years worth of Phoenix threads and even longer if they aren't a smashing success. Plus, the Glendale Councillors are so adorable. Furthermore, RSE still might not be able to get the deal done.

 

[blues10]

I would hope Goldwater will have a statement out in five days...

Nope - the predictions show the cog is getting fair value for their money.

It is all over. Leblanc just purchsed an nhl team for probably less than 5 million of his own money. Absolutely brilliant.

 

[DopeyFish]

So how much is Glendale paying every year? $15M or $6M? What are the terms? Only revision I noticed was taking out the out clause, leaving Glendale: no way out.

When are the bond rating companies going to speak? I hope they say something tomorrow.

I hope they drive their bond rating into the cellar

 

[Habaneros]

New City of Glendale slogan:

GRAB YOUR ANKLES.
We have an NHL team to service.​

New Glendale slogan:

Detroit's goin bankrupt,we can too.

 

[Govment Cheese]

50 million in loses no problem, RSE will opt out the first chance they get.
They aren't going to be paying on the principle to Fortress only interest. Also in the fifth year they have to start paying back the NHL loan. Start the BK clock.

don't see this as anything but a money pit.

 

[JetsFlyHigh]

Good for the Coyotes hockey fans. Bad for the people of Glendale when they realize that their emergency services are being cut down hard, their education will become lackluster and their homes worthless.

But the players and the fans will volunteer as firefighters, and as cops, and as librarians or teachers for the betterment of Glendale.

 

[blues10]

This isn't over. League might not feel comfortable with RSE's finances and may walk.

Stuff will go down in the days to come.

Wrong. The nhl would not be at the meeting unless the backed rse 100%

 

[FrailSwan]

So how much is Glendale paying every year? $15M or $6M? What are the terms? Only revision I noticed was taking out the out clause, leaving Glendale: no way out.

When are the bond rating companies going to speak? I hope they say something tomorrow.

I'm pretty sure the deal is that the team attempts each year to put 9 million in their revenue with the 6 million they get from the city to pay for the 15 million building expense. If there's a term on that, I'm not sure. But if the team can't get that 9 million, that's when problems start to happen.