Phoenix LXXII: Send in the Clowns
View Single Post
02-13-2013, 01:18 PM
Join Date: Mar 2012
Location: Guelph, ON
Originally Posted by
The NHL cannot dance without a partner. I see the league as nothing more than opportunists. And as long as guys like Ed Beasley and Art Lynch enjoy fine dining, private jets, and meetings in NYC, there will be lots of opportunities. Once the NHL has a city administration on board, how much effort does it really take to sway a couple of rubes on a city council? I have found it incredibly difficult to locate any evidence that suggests the NHL mislead anyone or did anything under false pretenses. The NHL appears to have simply allowed the imbeciles on the Glendale City Council to fully explore their egos and ineptitudes.
One of my favorite exchanges was during the second approval of $25MM. Here is Steve Frate's governance gem (excerpt from Minutes of May 10, 2011):
600 new tickets and Lynch's presentation was all the evidence Frate needed to sign off on another $25MM. Keep in mind that Frate had access to all the data which showed beyond any reasonable doubt that the NHL AMF was grossly disproportionate to the revenues the Coyotes generated; the NHL product was not viable in the market; and it was extremely unlikely that any potential owner would be able to complete a transaction. Frate willingly chose to discard all of the hard evidence and instead accepted the Lynch/Hocking projections while asking Daly a softball question about how the franchise was improving.
While the NHL was the benefactor, it doesn't appear that the league mislead anyone. In this excerpt, Daly didn't lead Frate to the water; Daly just stood by while Frate drank. Any potentially misleading activity would appear to have been conducted by Beasley, Lynch, Hocking. But even at that, no competent council would ever be swayed by the administration/consultant presentations. If you have not seen BarneyG and Othmar (ThomasL) analysis of the financial projections and bond prospectus, I encourage you to find them in the archives. If you want to fault the NHL for taking full advantage of the situation, I can respect that perspective. However, I do not see any grounds to accuse the NHL of misleading Glendale. The city did that to themselves.
indeed it was just daly's word on the 80% retention and the 600 new sth's (arguably, actually pretty decent #'s, all said), not even anything in writing let alone a speradsheet. yes, of course, glendale was governed by foolish ostriches and the nhl took advantage of that.
... can i clarify something? the one set of circulating letters from the nhl to glendale that itemized monthly operating losses in 2010-11 and which totaled $24.8M contained no details. do you know if a) the nhl was required under the 10-11 amf to provide those details (ie., an actual operational accounting) and b) if so, was the nhl required to provide it (ie., over and above the simple, "we lost this much this month" letters) or was glendale under an obligation to actually ask for that accounting?
View Public Profile
Find More Posts by GuelphStormer