Glendale trying to end lease agreement with Coyotes

[Bates]

They are however available to the City and they have not disputed the numbers.  The City gives the team $15 million upfront every year.  Then based on things such as ticket sales, parking, naming rights and so on the City gets a portion back.  From the article I posted it was between $6 and $7 million last year and between $7 and $8 million this year.  How can that be an increase in losses for City on this transaction?

Here is bit from article, I doubt you need an MBA to understand this.


When the arena management agreement was signed with Glendale in 2013 the goal was to eventually return approximately $9-million to the city annually, according to LeBlanc, who added that a more lucrative naming rights deal has helped the Coyotes take a step in the right direction.

?Last year we came in somewhere between $6- and $7-(million), this year it?s going to be between $7- and $8-(million),? LeBlanc told Sportsnet in a recent interview. ?I mean we?re trending this thing completely towards (our goal).




?There is a scenario for the city that some time in the near future it's even better than what we had predicted a couple years ago."

 

[Kin]

They are however available to the City and they have not disputed the numbers.  The City gives the team $15 million upfront every year.  Then based on things such as ticket sales, parking, naming rights and so on the City gets a portion back.  From the article I posted it was between $6 and $7 million last year and between $7 and $8 million this year.  How can that be an increase in losses for City on this transaction?

That's not "according to the article" that's according to Leblanc. Leaving aside that "somewhere between 6 and 7 million" and "Between 7 and 8 million" can actually only be the difference of a few hundred thousand dollars, it's still based on his projections.

Leblanc isn't actually stating anything definitive either, so there's nothing really for the city to dispute. He's saying that he thinks they'll end up giving the city more money while the city is saying that their increases this year are already over and above what they were at last year at the same point. So his projections might be rosier than the city's. But, again, he's got a vested interest here in painting a rosy picture and the city actually doesn't have the same interest in painting the deal as being overtly negative.

 

[KW Sluggo]

Why can't be an agreement that favors me more than you but better than you having no agreement? 

It is far more important for the citizens of Glendale for this deal to continue rather than the alternative.  They received back over $7 million of the subsidy from last season, it was going in the right direction.  The question now is how much damage has been done if they are even able to continue.

Just a post ago it was a financial agreement that favoured me more than them. Now, it's in their best interest.

I can perfectly understand a Glendale resident wanting to wash their hands of the whole thing. Regardless of the supposed ultimate benefit to them, I can understand not wanting a single additional public cent wanting to go into the pockets of millionaires for them deigning to keep this comedy of errors going.

It is in the best interests of both parties to escape this deal.

Glendale is closing libraries, laying of police and firefighters etc. Glendale cannot afford this deal.

As for the desert dogs, this is a chance for a reset.

Glendale is nowhere near where they need to be in the greater Phoenix - Scottsdale area. I have been there and it is just too far away from everything.

Here is an opportunity to partner with the Suns who are looking to build new arena and stay in the Phoenix area but in a more centralized location. Two teams in one venue is clearly more economically viable and in this geographic context, it is the only way the Coyotes can survive without exiting Az.

Play the court games as long as is needed to stall for time to make the deal with the Suns and stay for another year or move back to the old arena if need be, but kiss Glendale goodbye.

BTW, my daughter and her family are moving to San Jose from Chandler but during their time in Phoenix, even the allure of $20 tickets - not for Leaf games, mind you - and $2 beer night - Bud and Bud Lite, mind you (do you see why I prefer parentheses, Significantly Insignificant?) - could not induce her to drive over 90 minutes more than twice per season.

 

[Kin]

I am happy to keep beating the "public money should never go to Stadiums" horse but John Oliver did it pretty well for me last night:

[youtube]http://www.youtube.com/watch?v=xcwJt4bcnXs[/youtube]

 

[CarltonTheBear]

Finally got around to watching this episode. As usual John Oliver nails it.