Phoenix XXVII: Can we all get along?

[RAgIn]

GWI threatening to sue...

CoG threatening to sue...

MH threatening to sue...

Who would have ever imagined that Bettman comes out of this looking like the rational one?

Whole lotta threats, but nothing forthcoming. Story of the year.

 

[RAgIn]

Glendale residents speak in support of Coyotes deal

“The market valuation is done, and the bonds are out on the market,†she said. “You all know the ups and downs, turns and twists we’ve been through, and the council feels we have a good agreement.â€

If the bonds do not sell, she said, the team is gone.

“The team will leave for Canada,†she said. “We can argue forever, but it is what it is. This is how things are done in the bond market.â€

If the team does leave, Scruggs said the city will have to come up with a way to compensate for lost revenue, whether from cutting other costs or raising taxes. Scruggs even mentioned the possibility of pursuing a minor league hockey team as a replacement anchor tenant.

“We need guidance on this because we could be dealing with this in just a couple of weeks,†she said. “I cannot be more serious. We’d need to find a way to cut expenses or raise revenue.â€

Is it just me, or is she saying Plan B needs to be figured out as soon as possible.

http://www.yourwestvalley.com/topstory/article_09d56e52-4fe3-11e0-ae97-001cc4c03286.html

 

[Larabee]

Whole lotta threats, but nothing forthcoming. Story of the year.

MH has no class. He's put together a deal that has stirred up a hornets nest in Arizona and has embarrassed the NHL. If he had any class, he'd just walk away from the deal, like Jerry Reinsdorf did.

 

[Fugu]

I don't understand the feasibility of the business plan given that the various parking studies used 6% or so as the projected interest rate on the bonds.

If, as expected, the market demands somewhere closer to 9% and there is no new parking study revising revenue estimates how can this be a break-even deal at best?

With interest rates 50% higher than initially projected it seems to me the project is now absolutely budgeting excise taxes as part of the repayment plan unless there is some other revenue stream I haven't heard about.

Besides being bad business, does this not necessarily contradict the constitution? There is no demonstrable value commensurate with the expense with bond interest at 9%.

I've felt this way all along as well. It's fine to project revenues based on some existing history, but not only has Glendale used the mostly best case scenario (the highest announced attendance figures historically), but then added in that other revenue streams would be developed. I believe it was mentioned somewhere that parking lot ads would be one stream. That's where risk comes into play. They are assuming all of it, and if these new streams don't actually eventuate, they have to use excise tax monies to repay the debt. There are those who believe the arena manager should retain those 'lucrative' rights and develop those streams for himself, thereby assuming the normal risk to any business venture.

 

[RAgIn]

MH has no class. He's put together a deal that has stirred up a hornets nest in Arizona and has embarrassed the NHL. If he had any class, he'd just walk away from the deal, like Jerry Reinsdorf did.

But he clearly doesn't want to bail. This is pretty much his only chance at owning a team at a reduced price. He's been all in for a while. I can't see him escaping.

 

[cbcwpg]

GWI threatening to sue...

CoG threatening to sue...

MH threatening to sue...

Who would have ever imagined that Bettman comes out of this looking like the rational one?

You forgot a couple:

Lieberman was threatening to sue the CoG.

And the NHL is still trying to sue Moyes. ( so no, Bettman is not rational )

"Suits all around"

 

[LT_Canadian]

GoldWaters press release that they will sue once the deal is signed is perfect. For all the people that said they wouldn't sue that they were all talk...well now you have it in writing. I just saw Brahm Resnik's interview with Darcy Olsen and she said that city council told her they had not voted on suing GWI so they were all talk. It was pure BS.

I say sell the bonds lets get this thing going. I love it!!!

Can't wait to see all the big mouths eating their words.

 

[BigBadBread]

So theres a lawsuit circus about to go down eh? Better call this guy:

 

[RAgIn]

Court Challenge Keeps Glendale Bond Sale for Coyotes on Hold

Glendale, Ariz.’s plan to sell $100 million of revenue bonds to finance the sale of the Phoenix Coyotes hockey team to Chicago investor Matthew Hulsizer looks like it will remain on hold after the Goldwater Institute confirmed plans to challenge the deal in court.

Gee, I can't believe it.

The city Wednesday morning had not commented on how it plans to respond to the lawsuit or how it will affect the planned bond sale.

http://www.bondbuyer.com/news/COURT...RSS&utm_source=twitterfeed&utm_medium=twitter

 

[cbcwpg]

Is it just me, or is she saying Plan B needs to be figured out as soon as possible.

If the team does leave, Scruggs said the city will have to come up with a way to compensate for lost revenue, whether from cutting other costs or raising taxes. Scruggs even mentioned the possibility of pursuing a minor league hockey team as a replacement anchor tenant.

http://www.yourwestvalley.com/topstory/article_09d56e52-4fe3-11e0-ae97-001cc4c03286.html

Well, this is a change for Scruggs. I swear she said that would have to turn the arena into a target range for military testing if the Coyotes left.

 

[Fugu]

As noted prior to the thread going over the cliff with pro/anti Winnipeg, Phoenix, and Goldwater biased posts, we are not in a position to say with any degree of certainty who owns the rights.

Absent a visit to the 1100 or so documents in the bankruptcy case we must accept the very real possibility that the parking rights were not assumed by the NHL. Yesterday we saw that there was indeed a deadline of June 30, 2010 for Glendale Contracts to be treated as Assumed Contracts. Accordingly, the idea that the NHL can simply assume the contracts at any time is inaccurate. Glendale may have themselves a significant problem. I am content to sit back and speculate rather than invest hours in BK document research. If you are inclined to take on that effort, I would be happy to piggyback on the results of your work.

Goldwater definitely made it clear they will not seek injunctive relief prior to the sale. That was about the least surprising element of their press release.

With your 'typo' post, I went back to discover I'd missed your response.

As I didn't put the date there, I don't know for sure. Maybe they just left it as is pending the court's decision. But the date there has little meaning until the subsequent agreements with the court and the debtor, Moyes took place and only if those subsequent decisions tied to it - which I strongly suspect they would not.

It's not as simple an issue as it might appear - to try to extend it a year. For example, some contracts may expire before June 30, 2011. Other contracts may experience some sort of hardship having the contract tied up for another year, etc. The extended date may have some effect on the details or terms within the various contracts. And naturally, Moyes and probably the judge would like to be done with it asap as well.

The important date would be the one the debtor, the judge, the NHL, the city of Glendale & all the other creditors agreed to. Because that date had not been decided by all the parties when the deal between the NHL and city of Glendale got put together, I doubt the date in their agreement has much weight. It would be superseded by what all the parties agreed to or the judge dictated when the issue got addressed by the court.

Do any of you lawyers recall the reason the NHL would leave some of the rights hanging (assuming that's where the parking rights currently reside)? The lawyer-speak is quite thick, but wasn't the original arena management and associated parking rights tied in to Moyes' 30 yr agreement with CoG, which contained that onerous $700m+ penalty for terminating the lease?

By extending the lease under Moyes, the NHL did not have to assume that specific agreement. Moyes agreed to 'not reject' the original lease through 30 June 2010. The week after that date, Moyes estate did reject the AMULA--- but it may have been more than just that portion (I can't find where it's documented). CoG and the NHL then presumably agreed to one more year of the same conditions, not having negotiated a new AMULA.

Thus is it possible that the NHL cannot assume the lease because they need to leave the relocation card open. As soon as they have a buyer for the team, who has negotiated a new lease with CoG, they then can grab [maybe, since we're past Jun 30 '10] the parking rights.

Assuming any of what I've depicted above is accurate, what precluded CoG from taking back those rights since no new lease was negotiated in the stead of the Moyes/NHL-extended lease?

 

[RAgIn]

Well, this is a change for Scruggs. I swear she said that would have to turn the arena into a target range for military testing if the Coyotes left.

Yeah, she sure loved using that doomsday scenerio. Obviously, that wasn't quite correct.

 

[Killion]

Who would have ever imagined that Bettman comes out of this looking like the rational one?

Say what you will about the guy, he & Daly have absolutely Aced this mess right from the get-go IMO.

 

[Tommy Hawk]

Well, this is a change for Scruggs. I swear she said that would have to turn the arena into a target range for military testing if the Coyotes left.

She did. She said plan B was to mothball the arena. She should have had a back up plan long ago, like many here posted.

Say what you will about the guy, he & Daly have absolutely Aced this mess right from the get-go IMO.

They are aces in my book!!

 

[CasualFan]

Do any of you lawyers recall the reason the NHL would leave some of the rights hanging (assuming that's where the parking rights currently reside)? The lawyer-speak is quite thick, but wasn't the original arena management and associated parking rights tied in to Moyes' 30 yr agreement with CoG, which contained that onerous $700m+ penalty for terminating the lease?

By extending the lease under Moyes, the NHL did not have to assume that specific agreement. Moyes agreed to 'not reject' the original lease through 30 June 2010. The week after that date, Moyes estate did reject the AMULA--- but it may have been more than just that portion (I can't find where it's documented). CoG and the NHL then presumably agreed to one more year of the same conditions, not having negotiated a new AMULA.

Thus is it possible that the NHL cannot assume the lease because they need to leave the relocation card open. As soon as they have a buyer for the team, who has negotiated a new lease with CoG, they then can grab [maybe, since we're past Jun 30 '10] the parking rights.

Assuming any of what I've depicted above is accurate, what precluded CoG from taking back those rights since no new lease was negotiated in the stead of the Moyes/NHL-extended lease?

Without going through the BK documents, there is no certainty about which contracts were assumed and which were rejected. Hence, nobody can claim to a certainty that the team owns the rights or the city owns the rights. We have known for a while how the NHL could have acquired the rights, but to date, I have not see anyone provide the docket reference to confirm it.

In context of why the NHL would not assume the agreements, I cannot say. I do recall that during June of 2010 the MOU with Ice Edge was in effect and the focus at that time was on a CFD. It would not surprise me at all if the "parking lease and buy-back" scheme was not developed until later in the timeline.

At this point, Goldwater appears satisfied that they have a case. Not a strong enough case to seek an injunction but a strong enough case to state they will sue. For whatever that is worth.

 

[Ludwig Fell Down]

Gee, I can't believe it.



http://www.bondbuyer.com/news/COURT...RSS&utm_source=twitterfeed&utm_medium=twitter

I'm sure glad the CoG isn't being rushed into any hasty decisions.

 

[PitbulI]

Wait, so the bonds are out in the market now or were they held back once again now that the GWI said they will sue?

There must be something the NHL has done if these bonds have hit the market. The NHL must have suckered some investors to put their money into this as the NHL will help fight the GWI.

 

[Killion]

Lawyers, Bonds & Money..... That works. I voted for it. Lets just hope Warren Zevon doesnt sue for Copywrite Infringement. My other choice wouldve been Smash Mouths' Walkin on the Sun, in fact, I move we adopt it as the "Official Anthem" of this entire saga.

 

[OthmarAmmann]

Is it just me, or is she saying Plan B needs to be figured out as soon as possible.

http://www.yourwestvalley.com/topstory/article_09d56e52-4fe3-11e0-ae97-001cc4c03286.html

By about budget time it looks like. I guess if they don't get the bonds issued by that time the budget mess will be all GWI's fault. Certainly not Council's

 

[crazed323]

That's it back to Winnipeg!!!

 

[AllByDesign]

Lawyers, Bonds & Money..... That works. I voted for it. Lets just hope Warren Zevon doesnt sue for Copywrite Infringement. My other choice wouldve been Smash Mouths' Walkin on the Sun, in fact, I move we adopt it as the "Official Anthem" of this entire saga.

I'm sure he'd be happy just being an inspiration. Interesting stuff guys and gals... I thank you in assisting be getting to sleep last night. Out in record time.

 

[Larabee]

I'm sure he'd be happy just being an inspiration. Interesting stuff guys and gals... I thank you in assisting be getting to sleep last night. Out in record time.

Easy for you to say. I needed a tranquilizer

 

[King Woodballs]

what are all you mods going to do here once this finally gets settled haha
it's going to get very boring on this board hahaha

 

[crazed323]

what are all you mods going to do here once this finally gets settled haha
it's going to get very boring on this board hahaha

Thrashers will be the next hot topic.

 

[RAgIn]

I'm sure glad the CoG isn't being rushed into any hasty decisions.

Nah, no rush. Snail's pace. Cue the turtle.