Non-Ownership Thread: Who Cares Edition
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02-07-2013, 09:20 AM
Join Date: May 2010
Originally Posted by
Can somebody explain how owning the arena is
attractive than a very large fee for managing the arena? I know Weiers is not interested in the large fee, but how is putting the rights to the arena on the table now that the management fee is off the table going to attract more people to the liquidation sale than the last offer of fifteen-ish million annually to run the thing?
I don't know why some people still think that the Jobing.com arena is a big inducement to take the Coyotes. The COG has already told prospective owners that they can essentially have the Jobing.com and all of its revenue without paying a dime to own it, while Glendale continues to pay the arena debt. On top of that, they have been offering a very lucrative fee to manage the arena, which a prospective owner would forfeit if they bought the arena.
I think that the last few years have made it clear that the only package that might attract a legitimate owner includes: 1) free use of the Jobing.com arena and all of its revenue streams (hockey and non-hockey); 2) a generous subsidy from Glendale to offset the operating costs / losses from the arena and the Coyotes and; 3) a greatly discounted sale price to purchase the team from the NHL.
Glendale agreed to two of the three conditions, but apparently the NHL has remained firm on the sale price. Whoever might emerge as a potential owner in the future will almost certainly still require these three conditions to be met. Selling or even giving the Jobing.com arena to someone would be of no interest if it also required the owner to purchase the Coyotes at the NHL's asking price and operate it in Glendale without large subsidies.
I have no idea about Weiers skill or capacity as a mayor or negotiator, but unless he finds a way to meet the above conditions his bluster will be only hot air.
One possibility might be less subsidy in return for a shorter lease. But I think it will be very contentious to develop criteria determining whether an owner can relocate the team in a few years. In the meantime, fans would have to pay considerably higher ticket prices (and perhaps parking), without the long-term security of local ownership.
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