M4B thanks for sharing your insight as always.
Curious as to you opinion why the city of Glendale intelligently decided to kick the coyotes out? Wouldn't this mean a loss of millions of dollars of revenue annually?
Thank you, PH1.
One thing that should be dispelled is that this "nuke", for lack of a better word, that Glendale executed was to rid themselves of the franchise. Not saying you PH1, its just seemingly the main thing thats being said elsewhere. Its really a negotiation tactic. To really bring the Coyotes owners to the table and discuss a renegotiation, if you will.
I don't ever get the sense that Glendale wants them gone outright. That said, they may have triggered a series of events that perhaps snowballs this to the point it just may happen. In other words, their initial intent wasn't to kick them to the curb but if this whole saga goes every length of the rabbit hole and they prevail? Perhaps unwanted consequence is the phrase I'd use to describe it.
To your second part. There's plenty of data out there that, initially and on the surface, the City is better off without them than with. The City budgets $6M a year to be funneled to the Coyotes. The remaining $9M budgeted "carries" the Arena Management Fee the Coyotes (as the Arena Manager) "need" to manage the Arena. There's no sugar coating it. It's a massive subsidy.
Glendale does receive revenues back in the form of capped parking revenues, ticket surcharges, rent, naming rights, etc. But with the team's woes, attendance (although on the up as of late), and the fact they (owners) are so heavily leveraged (borrowed money everywhere) its just can't foreseeably be a situation where both sides benefit. Not to mention the City is
also on the hook for the Arena Debt service which adds quite a few millions on top of it all AND paying almost 95% of the freight for their Spring Training Facility. They get relief, if you want to call it that, from the City of Phoenix and the teams that share the Spring Training Facility but its so small, its almost a "why bother" thing.
I can go on and on and on with RFP's on separate Arena Managers that significantly reduced Glendale's costs, better revenue sharing models, performance clauses and the like... and truth be told the RFP's and "Life Without" studies are about the only real things that even enter the scene in comparison between Broward and the Panthers and Glendale. You all are awaiting the outcome. Glendale's already done theirs. Generally speaking and casting a wide net on the comparison. Its all Doom and Gloom. And its laughable, honestly. Overinflated, meh... better stop here and not get carried away with it.
So to answer your question (long way to get there - I know and I apologize) on the surface Glendale would "save" around 35%-40% on what they lose if the team left. The other loser in this would be Westgate, the entertainment sector adjacent to the Arena. I don't buy all the doom and gloom that it would be boarded up if they left, and Westgate would lose some money. But overall, the amounts lost if the left is less than if it stays status quo. Hence the renegotiation.
One last thing before I wrap up this long-winded segment. You all Southeast of me should take solace in, in the comparison between you all and the Coyotes, are facts that A) Broward is involved versus just a single city. A small one, relatively compared. B) The State of Florida and its $2.5M it submits to Broward for BB&T in tax benefits versus a very miniscule amount provided to Glendale from Arizona. C) Broward can foot the bill with relative ease (not saying if the Panthers left, just saying that Broward generates a tremendous amount of monies annually versus Glendale).
And anything I say (PH1, Hanzal - you guys know this) that may seem derogative towards the Panthers and the Coyotes don't take it as I'm against them. I'm hard but I am fair. I'm not a fan of lopsided Private/Public partnerships and have always maintained that owners need to make it a go on their own steam and if assistance is needed, it must be mutually beneficial to both parties. A true partnership.
You know what I mean 
Vegas could be a spot.
