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New Arena deal agreed to by city and Katz group:mod warning #616
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05-10-2013, 01:01 AM
Join Date: May 2009
Location: The Kop
Originally Posted by
They have a 30 year lease that extends to 2033, with a clause that would force anyone attempting to move the tea out of Glendale to pay out upwards of 750 million dollars to the city.
It's why every owner has to run the gauntlet of legal proceedings to revise the agreement to more favorable terms(it costs the team too much per year), and the only real option the NHL has is to fold the franchise outright if they want to try relocation.
Greg Jamison is the most recent prospective owner to fail to come up with the capital to satisfy Glendale's financial requirements on the revised lease agreement.
This is incorrect.
The City of Glendale was an unsecured creditor in the Coyotes bankruptcy hearing. When they agreed to support the NHL's bid for the team over Balsille's, they voided the lease and the judge warned them they were forgoing any future possibility to pursue claims.
Glendale has since entered into a series of one year leases with the NHL, that the league has a ten year option to continue to renew the yearly lease at its sole discretion.
As a result of the deals the NHL can decide that they are selling the team to a group that wish to relocate the team and the COG has no legal recourse.
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