Ownership Cluster**** Thread: NHL and GJ, Put Up or Shut Up!
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09-27-2012, 10:03 PM
Join Date: Mar 2011
Location: Maricopa County
Originally Posted by
Is it really that straightforward? Wouldn't bond and credit raters consider the totality of the financial situation? Who's to say that they wouldn't prefer Glendale's financial situation with a $5 million per year AMF for professional arena management vs. $15-20 million per year for the Coyotes as tenant.
Nothing can ever be straightforward in this situations; it may be a law in Glendale's books. But here was a little blurb on the debt refinancing:
"The deal is still in progress," said Todd Curtis, portfolio manager for Aquila Tax-Free Trust of Arizona, on Thursday. "That deal has struggled probably because of the downgrade and is probably costing the city."
The question for investors is whether the Coyotes stay in Glendale, Curtis said.
If the teams leaves, it would hurt Glendale's retail sales-tax collections, which back the general obligation debt, Curtis said.
Also, the $6M figure they use if the Coyotes leave was not a true figure. It was a "bid" they received from one of the Councilmember's buddies in the "Monarch Group", which has no experience in booking events.
It will be had for a group to organize the previously booked 10 non-hockey events (rough guess) plus additional events to replace the 50 events with an average attendance of 13,244 (regular season+playoffs). US Airways is killing it in bookings right now. But I have also noticed bands want to book the many smaller arenas around town. I myself will be attending the Green Day concert in the smaller, much smaller, Marquee Theatre in Tempe.
If they team leaves, it would be hard to replace the lost sales tax from the hockey events, thus the reason bonds would be more difficult to sell.
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