Phoenix LXIV: Will You Still Need Me, Will You Still Read Me, on Thread LXIV?
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11-12-2012, 11:53 AM
Join Date: May 2010
Originally Posted by
If I was advising the NHL, I would leverage the Beasley Transfers and the escrow. Transfers created a $20MM budget problem? There just happens to be $20MM sitting in escrow. Want to solve your budget problem, Glendale? Sign the JIG Lease and we will release those funds back to you so you don't have to cut anything else. Pay us back $5MM per year later (plus interest).
Glendale loves a cash today, pay tomorrow plan. I think that tomorrow's meeting is much more important than anything that might happen on 11/27. The tea leaves will likely be pretty easy to read during the budget discussion. Besides, why would anyone assume that Clark knows what she's talking about? She went on a radio program and announced the lease will be coming. I feel like I've heard that from her before.
I agree that the budget discussions tomorrow are important. Skeete and the COG are on the hot seat related to the recent audit, and they obviously are now going to have to budget for the upcoming need to pay back the NHL's subsidy.
A payment plan might help them with their internal compliance, but just defers the pain to future budgets and council members. So, instead of paying it out now, they'll have to increase future payments to Jamison and the NHL to over $20 million per year for several years.
What it boils down to is the political and financial considerations of whether the COG can and should continue to provide such substantial subsidies as the price to keep the Coyotes. The factors have changed dramatically in the past 2-3 years. For one, Glendale's budget has been blown apart by the recession and the $50 million in subsidies to the NHL out of their General Fund. Also, the arrival of the Tanger outlet and Cabela's has probably changed the calculus regarding the financial fortunes of Westgate. Previous dubious claims about the importance of the Coyotes seem even less believable with the expectation of a large influx of customers associated with the other retail outlets.
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