Coyotes institute parking fees at two lots with reduced price for STH
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09-02-2013, 10:26 AM
Join Date: May 2010
Originally Posted by
I have to disagree with that. On the one hand, cheap parking is great for the fans since people like cheap stuff.
But from a business standpoint it's horrible. RSE loses money because there are cheaper options. COG loses money because they are relying on RSE to generate extra dollars to pay for the AMF and therefore have to pay the AMG out of pocket rather than through RSE generated revenues. And according to the documents from the end of June, they were "estimating" that 2.243 million would be generated from parking revenues.
From a business perspective, the most RSE can ever keep in parking profit is $20,000, for the next 15 years. So parking revenue is always going to be of little consequence to the Coyotes owners' bottom line. It won't take much for them to reach that $20,000 - they'll probably max out their profit with 1500 cars. Other cheap parking options will therefore probably just cut into the COG's cut of the revenues. But I think that the larger issue is how this affects the overall strategy for making the Coyotes a viable financial enterprise before the owners and the COG are faced with the window for the "out clause" in five years. Both parties should be highly motivated to use whatever marketing strategies they can to avoid a relocation at that point. Starting with a big parking fee doesn't seem logical in the wider scheme of things.
Originally Posted by
This is all to do with the parking fees and the Coyotes, but how about non hockey events? Has there been any announcements for that or will those prices be set on an event by event basis?
According to the lease, parking charges need to be at least $15 per car for non-hockey events. That means that the closest and most convenient lots will be considerably more than that. The COG retains 75% of the parking profits from non-hockey events.
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