Coyotes institute parking fees at two lots with reduced price for STH
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09-05-2013, 11:59 PM
Join Date: May 2010
Originally Posted by
True, but the whole discussion is over parking charges and how apparently RSE suckered in the naive and easily distracted COG (well at least in my mind) into upping the AMF through the use of smoke and mirrors involving parking which the COG owns the rights to. The city would be better off to charge for parking themselves but that's another argument for added entertainment in the future.
And now some are suggesting the COG shouldn't really expect RSE to implement those charges this year because it'll be a massive hit on fans. Seems like some are suggesting fans will / may stay away from some of the lowest priced tickets in the league because there's a net increase to see a game?
Hell what some forget is the team is staying, there's dedicated owners for 5 years or a $50 million dollar loss (whichever comes first), there's no increase to ticket prices (well some say that would be more palatable than implementing parking charges but how's that different from charging for parking). I'll tell you why it's different.
I'm thinking those marketing geniuses, who call themselves RSE, may have dreamed this parking scheme this way so people will lay blame on the COG (seeing as that stream of revenue goes to the COG, minus the 20K per game) whereas if RSE increased ticket prices the cash and blame would lay solely with them.
I did up a chart (page 3 post #67 of this thread) showing that to get to the $2.2 million RSE promised the COG all they'd have to do is increase ticket prices by $4 dollars, which would bring in the same $2.2 million but seeing as that amount is not guaranteed and Fortress requires guarantees on payments flowing to them, guess what?
Yup, you guessed it, RSE doesn't increase ticket prices, so they won't seem / appear like they're violating and pillaging city coffers, but offer up parking revenues to the COG which apparently isn't fair to some and who are actually trying to make it seem like the COG are the culprits behind an increase to parking charges, which were in place last year on a lot adjacent to the arena, and to implement / charge for parking in lots on which there never was a charge.
Oh, the poor ST holder or the walk up fan or the new fan will be hit with a massive net increase to watch hockey.
But hey, it's all good for the time being. The proof of the pudding could come when the COG gets far less than the $2.2 million RSE said they believe they'll give back to the city.
It's all mind numbing but very, very entertaining from my side (Glendale non-resident).....
Well, RSE wasn't dealing with the brightest bulbs in the box in dealing with Manny "the Muddle" Martinez, Sam "Moonstruck" Chavira and Greg "the Whip" Sherwood, etc. They were under time pressure to complete the deal, and all they could think of was coming up with a scenario plausible enough to make the majority of council members and enough of the public think that they were evening out revenue with the AMF. Of course, if they wanted to make the two equivalent, they could have easily done that through specific performance clauses. For example, if there was a shortfall in parking revenue (as there will almost certainly be), they could have adjusted the ticket surcharge in subsequent years to compensate. But RSE had no real intention of being tied to a regimen that evened out the AMF, because the AMF is
a subsidy. I happen to think that they could have structured the lease agreement in a way that would leave more latitude for a sensible marketing and pricing policy, using a more flexible mix of ticket surcharges and parking.
Either way, they will need a lot more hockey fans paying much higher prices to make things work over the next few years. In a couple of years we should have a good read on that progress. In the meantime, I will be very surprised if the COG realizes the revenues necessary to offset the AMF. That will likely become the more immediate talking point in Glendale.
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