The Business of HockeyDiscuss the financial and business aspects of the NHL. Franchise sales, valuations, TV contracts, ratings, expansion, relocation, the CBA and work stoppage discussion goes here.
Impact of Glendale election on fate of Phoenix Coyotes future
Impact of Glendale election on fate of Phoenix Coyotes future
Our story thus far... Outgoing city council decided they needed to revise the proposed Jobing.com arena lease and still haven't approved it (almost a month after apparently getting agreement from Jamison on changed/new terms). Mayor and a number council seats getting new folks. And there was a measure on ballot for approval of increased sales tax to help pay for lease "payments" to Coyotes and other city services.
So, on Prop 457 -- which would keep the sales tax increase if defeated (and it was) and the impact on the Coyotes.
Quote:
The council has been divided on the issue. Mayor Elaine Scruggs, Councilwoman Norma Alvarez and former Councilman Phil Lieberman, who resigned last month, question the need for the hike when the city at the same time has justified spending upward of $300 million to retain the Phoenix Coyotes hockey team at its city-owned arena.
A council majority of Joyce Clark, Steve Frate, Yvonne Knaack and Manny Martinez blame the economy for the financial situation and say keeping the Coyotes is in the long-term interest of the city.
Even though part of the $25-million (all currency U.S.) was expected to go towards payments to the NHL team, which will average $15-million per year over the 20-year arena lease, there is no guarantee the new lineup at city council will keep the lease in place. The current council, which will remain in office until January, was shown a reworked Coyotes lease that lowered the payment to prospective owner Greg Jamison from $17-million to $11-million in the first year but it has not officially approved it.
The new mayor, former Arizona lawmaker Jerry Weiers, issued a shot across the bow of the NHL and the Coyotes on Tuesday night after he won the race to replace outgoing mayor Elaine Scruggs. Weiers said Glendale, a cash-strapped city of 250,000 that had to handle a $35-million deficit in its 2013 budget, “is not your cash register.” He also professed his love for the Coyotes but said, “we cannot sacrifice our way of life so they can maintain theirs.”
... lets see if he backs it with more than words. History of hypocrisy & intransigence within the political classes is as wide as its deep. Shoaltsies hyperbole aside, Jerry's a professional politician.
The current lease (with NHL) is being extended month-to-month. (I think they have another extension they need to approve if there is no new agreement.)
Jamison (et al) has not purchased the team. Any "else" (who/where) deadline I'm guessing could be near end of calendar year (to give league time to know other venue for scheduling, realignment, etc.).
Jamison: Give me all your money! .
CoG: We can't... think of the libraries.
Excellent flow. CSNY. Almost Cut My Hair. Basic chord fret. "When I finally get myself together"... whatshisname screaming on the backend?... followed by Neil Youngs' Helpless Helpless. "Blue blue windows behind the Stars. Big Birds flying behind the Skys'. Helpless helpless helpless"... Deja vu.
Does anyone know if the NHL and GOC have extended the month to month lease at the arena for another 30 days?....not that it means too much exect a bridge to the next 30 days extension and so on.....
Always surprising that a council with 7 weeks left in their terms with the majority off to greener pastures come January 1st still has authority to consummate a 300M + subsidy.. thus tying the hands of the new council to a monstrous debt which the majority of the new council are likely opposed.
If the new mayors "shot across the bow" is serious..... he might want to fire off a letter/email directly to GJ himself letting him know the new council won't be willing to "play nice" with him.
Does anyone know if the NHL and GOC have extended the month to month lease at the arena for another 30 days?....not that it means too much exect a bridge to the next 30 days extension and so on.....
Not sure they did. Maybe they didn't because NHL canceled games till November 30th before they had to extend the monthly deal.
Quote:
Originally Posted by JMT21
...
If the new mayors "shot across the bow" is serious..... he might want to fire off a letter/email directly to GJ himself letting him know the new council won't be willing to "play nice" with him.
Already done, even before the elections, many of the upcoming candidates, some of them were even adversaries in the same district, but they all co-signed a letter asking Jamison to unveil his investors and his plans. I think the letter remained unanswered.
The political winds in Glendale will shift in January when four new elected leaders are seated on the City Council, the first major change in years for the West Valley city known for its long-standing leaders.
A new majority is expected to take a more skeptical stance on a Phoenix Coyotes deal and ease, although not give up, opposition to a proposed tribal casino.
An independent audit to scrutinize spending in the cash-strapped city seems all but assured based on newly elected members’ campaign rhetoric.
The transformation began last week as voters ousted the only incumbent, 16-year Councilwoman Joyce Clark, who ran in the city that’s seen its heavy investment in professional sports falter.
...
However, two months remain before Weiers and the others are sworn into office. The current majority could still secure a deal to keep the hockey franchise at the city-owned arena this month.
...
Interim City Manager Horatio Skeete last week said if voters had repealed the tax increase, estimated to bring in about $25million annually for five years, the deal would have died.
“It would have been much, much too heavy,” Skeete said.
The 20-year deal, in its current form, would require the city to pay Coyotes suitor Greg Jamison an average of $15million annually to manage the city-owned Jobing.com Arena. The four-member council majority has said keeping the team as the anchor tenant at the arena is in the long-term best interest of the city. Skeete has agreed.
...
Clark went on to say that a vote on the agreement with Jamison would happen Nov.27.
But, but, but.. the COG, Clarke and Skeete repeatedly said that the sales tax increase had no bearing on the arena management (subsidy) deal with gramps Jamison.
Because the mega thread (stickied) covers all aspects and discussion when the non-stickied threads are news driven (IOW some thing is/will be happening).
No it wouldn't, especially since the Jamison and the former councillors will appear to be attempting to thwart democratic will. And what would the remedy be when council reverses it's decision? The lease is broken and the Coyotes leave...
No it wouldn't, especially since the Jamison and the former councillors will appear to be attempting to thwart democratic will. And what would the remedy be when council reverses it's decision? The lease is broken and the Coyotes leave...
That's what I think as well. I can see the current ramming through a deal, and the new council taking legal action to reverse it, not to mention GWI getting into the act as well, as well as a probable upcoming audit thrown into the mix (which may or may not be related to the Yotes, but boy will get some serious attention)
Basically, I think if someone thinks "okay, Outgoing council signed agreement, Yotes are staying, end of story", will be mistaken.
What it WILL be, IMO, is the end game finally starting.
Also, for players who LIVE in that area, you're going to have the townsfolk-rightly or wrongly, blaming you for increased taxes that were supposed to go to Fire and Police-I think by principle the attendance will drop to hundreds from the backlash.
No it wouldn't, especially since the Jamison and the former councillors will appear to be attempting to thwart democratic will. And what would the remedy be when council reverses it's decision? The lease is broken and the Coyotes leave...
The remedy is whatever the contract says happens if one party [CoG in your example] is in breach of the contract. If the contract doesn't contain breach terms then either side can still sue for breach with all sorts of possible legal outcomes.
City councils, and most government legislative bodies can't just void legal contracts by voting later they don't want them.
City councils, and most government legislative bodies can't just void legal contracts by voting later they don't want them.
If the AMF agreement merely says that the Coyotes can walk, without additional cash penalty to Glendale, "strategic default" as part of an austerity budget is an option.
BTW, if GWI sues to invalidate the AMF contract, is Glendale required to put up much of a fight in court? Is there a civil equivalant to "nolo contendere"?
The remedy is whatever the contract says happens if one party [CoG in your example] is in breach of the contract. If the contract doesn't contain breach terms then either side can still sue for breach with all sorts of possible legal outcomes.
City councils, and most government legislative bodies can't just void legal contracts by voting later they don't want them.
Of course they can, especially with a lease agreement that is mostly a big middle finger to the City of Glendale that runs contrary to the wishes of the populous.
Look, we're talking about a sports team. All teams are portable, thus all leases are weighted towards keeping the team in their present location with big penalties if the team tries to break the lease, not the other way around. There is going to be no penalties leveled at the municipality for the simple reason that franchise is now portable and has now gained in value. There is no damage to the team. At worse the new city council sponsors a referendum to overturn the lease.
Taking a lease to the lame duck council now is a pure and simple suicide move that will only infuriate the incoming council and alienate the general population. There is no happy endings for the Coyotes going this route...