Phoenix XCVI: The Government You Deserve ...

[MNNumbers]

Coyotes fans already were scheduled to pay a total of $4.45 per ticket for two surcharges in the 2013-14 season. The new formula will push the total to $4.50 per ticket, but fans won’t notice because surcharges are included in the price of Coyotes tickets, team President Mike Nealy said.

Team executives have no intent to raise the face value of tickets by a nickel because of the new agreement. Instead, the team will absorb the five-cent per ticket increase, so a $35 ticket will remain $35 and a $300 ticket will remain $300.'

Does this mean that the city is only going to gain 5 cents a ticket from this agreement? That means most of the payback for the extra 9M comes at the expense of other city revenues streams?

 

[Donwood]

To all that said LePew is not thinking of the fans, I offer you this from todays AZFishwrap article linked earlier:

'The prospective owners will charge parking fees of $10 a car for hockey and $15 a car for other events for as many as 5,500 parking spaces in the Westgate Entertainment District. Combined, the parking fees will generate $2.2 million a year for the city, IceArizona executives estimate.

In addition, they’ll add ticket surcharges of $3 a ticket for Coyotes games and $5 for other events, for a combined total of $3.2 million, they estimate. There also will be a secondary charge of $1.50 a ticket to create a $1.2 million reserve for the city to tap if IceArizona’s projections fall short.

Coyotes fans already were scheduled to pay a total of $4.45 per ticket for two surcharges in the 2013-14 season. The new formula will push the total to $4.50 per ticket, but fans won’t notice because surcharges are included in the price of Coyotes tickets, team President Mike Nealy said.

Team executives have no intent to raise the face value of tickets by a nickel because of the new agreement. Instead, the team will absorb the five-cent per ticket increase, so a $35 ticket will remain $35 and a $300 ticket will remain $300.'

The Coyote have a $300 seat???? Do you get to sit on the players bench for that?

 

[enarwpg]

so, the nhl's going to return the $20m sitting in escrow from the 11-12 season, then in 5yrs when the team leaves because as sure as shootin thats the plan, no problem losing $10m a year (even if you aren't, just ask the wirtz's in chicago about that one) then glendale has to pay out $25m to the nhl like some sort of golden parachute, while rse, who unless selling to someone somewhere realizes a huge winfall, wont be able to make up the shorts glendale absolutely will be experiencing over the next 5yrs in trying to find the full $15m in payments annually? How more complicated & one sided does this have to get? Look, if rse/iceaz was so confident in its projections & abilities, theyd gladly have taken the 6.5, the nhl couldve kept its $20m. Why mess it up like this unless you cant secure the financing without muni backing, and in doing so, enter the dragon of the gift clause. Yet another obstacle that is now charged, primed & ready to blow. who does this, who operates like this?

clowns !

 

[Killion]

The Coyote have a $300 seat???? Do you get to sit on the players bench for that?

According to their site, with big bold HERE TO STAY! welcoming you, Seasons Tickets packages running from $645 to $11,000 & change. The latter Row A, Bud Light Section, All Inclusive. Works out to about $261 per game per seat. At $645, app $16.

 

[GordonGraham]

Wasnt there sometype of july 8 deadline for both parties to sign a bunch of documents?

Did it get done or in typical glendale fashion they are waiting till 4.55 pm july 8?

 

[Confucius]

Wasnt there sometype of july 8 deadline for both parties to sign a bunch of documents?

Did it get done or in typical glendale fashion they are waiting till 4.55 pm july 8?

Oops Nevermind

 

[wunderpanda]

Wasnt there sometype of july 8 deadline for both parties to sign a bunch of documents?

Did it get done or in typical glendale fashion they are waiting till 4.55 pm july 8?

It was mentioned in the cities counterproposal

 The city requests that an agreement with Renaissance Sports & Entertainment Group (RSE) be signed
by RSE by July 8, 2013 and close by August 5, 2013. The prior agreement did not specify dates.

Not sure if the city left it in the voted on proposal of July 2

 

[Whileee]

So, the headline reads: "Coyotes fans to take hit in the wallet", and the article states that costs associated with the new deal will be passed along to the customers.

Instead, the actual surcharges on hockey tickets will increase by a nickel, and the owners are going to magnanimously pick up the difference.

Coyotes fans already were scheduled to pay a total of $4.45 per ticket for two surcharges in the 2013-14 season. The new formula will push the total to $4.50 per ticket, but fans won’t notice because surcharges are included in the price of Coyotes tickets, team President Mike Nealy said.

Team executives have no intent to raise the face value of tickets by a nickel because of the new agreement. Instead, the team will absorb the five-cent per ticket increase, so a $35 ticket will remain $35 and a $300 ticket will remain $300.'

 

[yotesreign]

According to their site, with big bold HERE TO STAY! welcoming you, Seasons Tickets packages running from $645 to $11,000 & change. The latter Row A, Bud Light Section, All Inclusive. Works out to about $261 per game per seat. At $645, app $16.

The $11,000 and change is actually $11,825. If $825 is pocket change to anyone... good for you lol.

$11,825 works out to $275 per game on full season package. Not much different from $261, but different nonetheless.

The $645, if my calculator is working correctly is $15 per game (prices are based on 41 regular & 2 preseason home games).

Single game ticket prices will be higher per game - 21 game plan packaged will be higher per game. Haven't seen an announcement on how much yet.

Those glass seats, in 2011-2012 were $255 on full season basis and those $15 seats were $10 on a full season basis. The single game pricer for those $10 seats (last four rows uppers in the corners & behind the goal) was $19 that year.

They've been raising prices the last 2 years and have increased attendance each year, under league ownership.

http://coyotes.nhl.com/club/page.htm?id=32965
http://coyotes.nhl.com/club/news.htm?id=587258

Also, as a recent article said and as was predicted elsewhere, the ticket surcharges will not impact season ticket holders. Certainly must be a disappointment to those hoping those surcharges would have a chilling effect on attendance.

 

[sipowicz]

The $11,000 and change is actually $11,825. If $825 is pocket change to anyone... good for you lol.

$11,825 works out to $275 per game on full season package. Not much different from $261, but different nonetheless.

The $645, if my calculator is working correctly is $15 per game (prices are based on 41 regular & 2 preseason home games).

Single game ticket prices will be higher per game - 21 game plan packaged will be higher per game. Haven't seen an announcement on how much yet.

Those glass seats, in 2011-2012 were $255 on full season basis and those $15 seats were $10 on a full season basis. The single game pricer for those $10 seats (last four rows uppers in the corners & behind the goal) was $19 that year.

They've been raising prices the last 2 years and have increased attendance each year, under league ownership.

http://coyotes.nhl.com/club/page.htm?id=32965
http://coyotes.nhl.com/club/news.htm?id=587258

Also, as a recent article said and as was predicted elsewhere, the ticket surcharges will not impact season ticket holders. Certainly must be a disappointment to those hoping those surcharges would have a chilling effect on attendance.

Can't wait to get back to Glendale to watch the Jets play!

 

[MaskedSonja]

So, the headline reads: "Coyotes fans to take hit in the wallet", and the article states that costs associated with the new deal will be passed along to the customers.

Instead, the actual surcharges on hockey tickets will increase by a nickel, and the owners are going to magnanimously pick up the difference.

EDIT:

Changed response because I may have misunderstood what the implication was-is the shakehead for the owners, or for the possible misleading headline?

 

[MaskedSonja]

Something that hasn't been mentioned much in the discussion here, and I'm curious:

Raising season ticket prices is one part-but what discussions/analysis/prospectus is going on about what really makes a team money: Corporate ownership-has there been any news about Corps picking up the pace and buying up the luxury boxes?

 

[wunderpanda]

So, the headline reads: "Coyotes fans to take hit in the wallet", and the article states that costs associated with the new deal will be passed along to the customers.

Instead, the actual surcharges on hockey tickets will increase by a nickel, and the owners are going to magnanimously pick up the difference.

Could have been "Glendale sells city hall for a nickel"

 

[MaskedSonja]

Could have been "Glendale sells city hall for a nickel"

I have to wonder if expecting this upcoming season to see "gotcha" type prices is going to lead to disappointment. They haven't even closed yet or have their hands in it.

I think the 2014-15 season, depending on how the numbers go this year, there may be a pretty steep at the price increase for tickets. I would assume that provided the fans know that the next 5 years are probably very crucial for the team staying after that point, they would put the money down.

We shall have to see.

 

[wunderpanda]

I have to wonder if expecting this upcoming season to see "gotcha" type prices is going to lead to disappointment. They haven't even closed yet or have their hands in it.

I think the 2014-15 season, depending on how the numbers go this year, there may be a pretty steep at the price increase for tickets. I would assume that provided the fans know that the next 5 years are probably very crucial for the team staying after that point, they would put the money down.

We shall have to see.

They might have closed
http://www.radio-canada.ca/sports/hockey/2013/07/06/001-coyotes-quebec-gosbee-rse.shtml
(i used google translate)

"We were sure that we had enough support from the council before the vote," said still Gosbee.

After purchase, the stimulus

Now that Glendale is related to CSR, the Coyotes will officially change hands.

"The purchase of the club was already confirmed by the NHL before the vote, said Gosbee. It only remains to conclude the agreement with the City of Glendale, which should take about a month yet. "

 

[MaskedSonja]

They might have closed
http://www.radio-canada.ca/sports/hockey/2013/07/06/001-coyotes-quebec-gosbee-rse.shtml
(i used google translate)

My emphasis was more on the (generous) idea that not closing yet means they may not have been able to fully get their hands in the pie so to speak, so any increases might be "softer", not so much that they wouldn't close.

Mind you, I'll be interested to see between now and Sept what surprises they have in store financially.

 

[aqib]

My suggestions for the title of the next thread:

1) Aye Chavira

2) Goldwater. Your move.

 

[LPHabsFan]

To all that said LePew is not thinking of the fans, I offer you this from todays AZFishwrap article linked earlier:

'The prospective owners will charge parking fees of $10 a car for hockey and $15 a car for other events for as many as 5,500 parking spaces in the Westgate Entertainment District. Combined, the parking fees will generate $2.2 million a year for the city, IceArizona executives estimate.

In addition, they’ll add ticket surcharges of $3 a ticket for Coyotes games and $5 for other events, for a combined total of $3.2 million, they estimate. There also will be a secondary charge of $1.50 a ticket to create a $1.2 million reserve for the city to tap if IceArizona’s projections fall short.

Coyotes fans already were scheduled to pay a total of $4.45 per ticket for two surcharges in the 2013-14 season. The new formula will push the total to $4.50 per ticket, but fans won’t notice because surcharges are included in the price of Coyotes tickets, team President Mike Nealy said.

Team executives have no intent to raise the face value of tickets by a nickel because of the new agreement. Instead, the team will absorb the five-cent per ticket increase, so a $35 ticket will remain $35 and a $300 ticket will remain $300.'

From what I remember, and I'd have to dig hard and deep into the minutes from the council meetings and workshop though this somewhat proves it, is that the saddest part about all of this is that the revenue that they are going to generate from the "new revenue streams" are monies that they already have been generating in the past.

To my knowledge, ticket surcharges have been a part of the lease agreement for the past several. Obviously sales tax on everything isn't new so there goes that. Not sure how much if any they were receiving in terms of rent but for arguments sake let's call it new. Parking I'm pretty sure is new and what's also funny is in that the maximum number of parking RSE can generate revenue on for the COG is 3200 spots since the COG already owns 2200 of them. The naming rights is new. So already you can knock more than half of the amount off the "new revenue streams generated by RSE" since they're not new.

 

[Killion]

They might have closed
http://www.radio-canada.ca/sports/hockey/2013/07/06/001-coyotes-quebec-gosbee-rse.shtml
(i used google translate)

So according to Gosbee, the NHL has not only already approved the terms of the sale but so too approved the principals of RSE, as in the BOG's took a vote and did so before last Tuesday, July the 2nd?... I find that very hard to believe.

 

[cobra427]

My suggestions for the title of the next thread:

1) Aye Chavira

2) Goldwater. Your move.

Or:

1. It's over Johny.

2. We were all wrong.

 

[Whileee]

EDIT:

Changed response because I may have misunderstood what the implication was-is the shakehead for the owners, or for the possible misleading headline?

My reference was about the headline and the article. It implied that ticket buyers would be footing the bill to help "bridge the gap" to pay back the COG, when in reality the new deal only raises the hockey ticket surcharge by 0.05 and even that won't be added to ticket prices. Basically, there isn't much more revenue going back to Glendale in the form of surcharges than was already the case, at least on a per ticket basis.

At some point they'll need to increase ticket prices, though they don't plan to yet. RSE won't survive on the current ticket price levels. It seems that they might plan to increase attendance first (with low ticket prices), and then increase the cost of a ticket later. It's not a bad strategy, I suppose. I think so much hinges on whether or not the on-ice product is of high quality. RSE has very little time to turn things around, it would seem.

 

[GJB]

I vote for:

Are we talking hockey or ambulances?

 

[hisgirlfriday]

I vote for:

Are we talking hockey or ambulances?

Looks like there is already a replacement thread.

 

[hisgirlfriday]

So according to Gosbee, the NHL has not only already approved the terms of the sale but so too approved the principals of RSE, as in the BOG's took a vote and did so before last Tuesday, July the 2nd?... I find that very hard to believe.

Couldn't they have done that at the draft?

 

[MaskedSonja]

My reference was about the headline and the article. It implied that ticket buyers would be footing the bill to help "bridge the gap" to pay back the COG, when in reality the new deal only raises the hockey ticket surcharge by 0.05 and even that won't be added to ticket prices. Basically, there isn't much more revenue going back to Glendale in the form of surcharges than was already the case, at least on a per ticket basis.

At some point they'll need to increase ticket prices, though they don't plan to yet. RSE won't survive on the current ticket price levels. It seems that they might plan to increase attendance first (with low ticket prices), and then increase the cost of a ticket later. It's not a bad strategy, I suppose. I think so much hinges on whether or not the on-ice product is of high quality. RSE has very little time to turn things around, it would seem.

Yes, I can agree with your perspective here-hence my questioning about what sort of numbers are being forecast. As I said in an earlier post, I don't think the "gotcha" numbers for pricing will be this season, but for the 2014-15 season, depending on how hard RSE gets hit, we might see some prices for season and regular tickets-just baseline, nevermind surcharges on top of that.

I would hope that with a 4-5 year "run" with ownership at the helm now, without distractions-will we finally see the proof either for or against the idea that with stability in ownership, the argument of "people will/won't pay continuing raising prices in AZ" might finally give us some answers.