Phoenix LXXII: Send in the Clowns
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02-27-2013, 12:23 PM
Join Date: Nov 2009
Location: Bay Area, CA
Perhaps it's the right time to take a quick moment and realign the conversation back into something that at least resembles a rational business discussion:
- AMUL: The Coyotes are playing the remainder of the 12-13 Season under a tolling version of the AMUL. The NHL has not exercised their exclusive right to an extension of up to 10 years. That clause in the AMUL provides the NHL some security if they do not have a valid relocation option for the 13-14 Season. Note: There is no right to renew the $25MM AMF. There are also no performance standards in the AMUL, so the NHL could continue to keep the arena dark for all dates other than Coyotes games.
- Beacon: The core competency of the Beacon LLC is planning acquisitions and raising capital in the context of professional sports ownership. If Beacon is involved, and I have seen no credible report to indicate they are, it would be most probable that they are attempting to align potential buyers; determine the terms of said buyers MOU; present the MOU as an option for Glendale.
- Business Friendly: I tend not to value sound bites from politicians but taking Weiers at his word, in this context, business friendly would seem to imply exploring viable business opportunities. The Coyotes are not a viable business in Glendale. I recall seeing a paper by Tindall that indicated that once a public entity commits to funding an arena/stadium project, that public entity must never deviate from the anchor tenant model. Of course, that's an insane position to take when confronted with the fiscal realities of the Coyotes. When you remove the bullcrap Pollack/Hocking report and turn off the Beasley/Colston/Lynch presentations, you're left with the undeniable fact that the Coyotes are the worst possible tenant for the arena. The team does not generate enough revenue to cover the arena debt. Then, separately, they require a massive operational subsidy to even exist. Changing direction while still allowing the NHL to competitively bid is the only reasonable response.
- TeamBeavis: Clark, to whatever extent she even authors things attributed to her, and Robocall Guy are fiction writers. Neither is qualified to discuss the mechanics of this transaction so they fill in their lack of knowledge with absurd conspiracies and tabloid speculation. Treating their ramblings as legitimate updates is beyond foolish. For all their bluster about the inner workings of City Hall, neither knew about the Tindall ouster until after it happened. Keep that in mind if you choose to read the next "rumors are swirling" blog.
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