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07-30-2012, 04:17 PM
Join Date: Jul 2010
Originally Posted by
Reminds me of the Hamister bid back in 2003.
Missed deadlines and not enough liquidity...not exactly the best option for the league.
Yeah, but it's even worse than that situation since the Coyotes don't even really have a fanbase and have zero history of success (they've never raised ticket prices and have literally never turned a profit).
I mean, it's one thing when a buyer wants to buy a decent team but doens't have the money, but it's a whole different story when someone wants to buy what has to be one of the least successful major sport franchises in North America and doesn't have the money.
Found this on the BOH board:
Our View: Explain the math on Coyotes deal
Everyone loves a winner, but at what cost?
We celebrated the Phoenix Coyotes’ deep run into the playoffs this year, howling with delight. But a proposed agreement to keep those same Coyotes in Glendale for the next 20 years is setting off warning buzzers.
The city expects to pay nearly $325million over the life of the agreement and in a statement boasts about the $115million it hopes to receive in exchange? Can the city afford this?
An analysis revealed that even if the Coyotes went to the Stanley Cup Finals for the next 20 seasons and the arena booked 30 sold-out concerts each year for the next 20 years, Glendale could still expect to lose about $9million annually. It also is obligated to make debt payments on the arena, which will average about $12.6million a year over the next 20 years.
This is the first local piece that I've seen question the math around the team and it's been three years now, so I can see how they've gotten themselves into such a mess.
If you haven't followed the situation and believe the team can actually work there for whatever reason, these numbers will probably change your mind.
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