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Post by wagner3 on Feb 24, 2009 3:03:31 GMT -5
Glendale bails out Coyotes The City of Glendale has been quietly bailing out the money-losing Phoenix Coyotes for several months, according to documents obtained by 12 News. A record of lease payments by the Coyotes shows the city has been letting the team play virtually rent-free at Jobing.com Arena for seven months. Based on past payments, the break could be worth up to $4 million over the course of a year. The city is giving the team the multimillion-dollar break even as it tries to plug a multimillion-dollar hole in its own budget. www.azcentral.com/12news/news/articles/2009/02/23/20090223coyotebailout02232009-CR.html
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Post by razorsedge on Feb 24, 2009 8:55:01 GMT -5
Before anybody jumps all over this, the Municipal and Provincial governement did the same thing every year for the Jets.
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Post by jhendrix70 on Feb 24, 2009 9:25:42 GMT -5
Still, hasn't the city done enough! I mean, they DID GET an Arena!! ( Winnipeg never gave us that........)
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Post by WpgJets2008 on Feb 24, 2009 10:05:29 GMT -5
Glendale bails out Coyotes The City of Glendale has been quietly bailing out the money-losing Phoenix Coyotes for several months, according to documents obtained by 12 News. A record of lease payments by the Coyotes shows the city has been letting the team play virtually rent-free at Jobing.com Arena for seven months. Based on past payments, the break could be worth up to $4 million over the course of a year. The city is giving the team the multimillion-dollar break even as it tries to plug a multimillion-dollar hole in its own budget. www.azcentral.com/12news/news/articles/2009/02/23/20090223coyotebailout02232009-CR.htmlHere's the rest of that article: "They're using that money for their operating money when it should have been paid to the City of Glendale," said Councilman Phil Lieberman. Council members who were informed of the bailout by 12 News said it was news to them. "Absolutely I should have been told," said Lieberman, a member of the city council for 17 years. Joyce Clark, who represents the district that's home to the Coyotes, also said she was never informed. Glendale spokeswoman Julie Frisoni declined to make City Manager Ed Beasley available for an interview, citing policy not to discuss ongoing negotiations. She did say there was no need to notify council members because the break on the lease was part of a change to an agreement, not an entirely new agreement the council would have to vote on. The disclosure of Glendale's behind-the-scenes help for the team shows the city was active months before it was singled out by the media, the Coyotes and the NHL commissioner as a key player in helping the hockey team survive. Reworking the arena lease is viewed as vital to luring new investors. The Coyotes said last week that several investors had expressed interest in a team that has lost a reported $200 million-plus since moving to Glendale in December 2003. But the lease documents raise questions about how much help Glendale can provide. "That whole arena was structured on certain revenues coming in," Mayor Elaine Scruggs, a longtime friend of team owner Jerry Moyes, said last month. "And we need to retain the ability to meet our debt payments." The Coyotes have not delivered the lease revenue. For example, the lease requires the team to pay an arena parking fee to Glendale of $2.85 per ticket sold. That parking fee makes up almost half of the team's $16.8 million in lease payments since 2003 -- $7.75 million to date. But that's $10 million short of the $17.8 million in parking fee revenue the Coyotes were projected to deliver. Meantime, the bond rating agency Moody's has raised concerns about Glendale's ability to service its mounting debt, after the city borrowed $200 million to build the new spring training complex for the Los Angeles Dodgers and Chicago White Sox. Moody's cited continued declines in sales tax revenue. Editor's Notes: Once it comes out that secret cash payments are made between the city and the Coyotes, you can expect the other shoe to drop. Based on the circus that went on in Winnipeg during city council debates over funding the Jets or its losses (done to buy the city and province time to study a new arena and location), it quickly became a media feeding frenzy with the public drawing sides. Now that this sort of news has come out, the backlash from thousands who have already lost their jobs (and their homes?)will be swift (no pun intended). They'll be mad that their city is bailing out a hockey team that evidently few care enough about to support.If the city had money to throw away, that is one thing, but this is a city that has taken on debt for the rink and the basball infrastructures. So this isn't going to go the Coyotes way any way you slice it, because there is no "grassroots" to support Coyote hockey enough to swing the politcians' minds. By the way, this story also proves David Shoalts' past stories that the Coyotes lease is one of the sweetest already in the NHL. Imagine all non-HRR going to the team, with each fan paying the parking surcharge (not the team). Sure the Coyotes probably could make some money by selling parking but then it would also have to own or control the lots around the rink which are owned by the mall, etc. that is right there. (Kinda like how we used to park at Polo Park for Jets games.) Chris
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Post by teemu13 on Feb 24, 2009 11:13:08 GMT -5
Now we can also see the benefit of the Arena being privately owned.
And if, as reported, MTCS is fully paid off, any owners of a new team in Winnipeg would enter into an agreement with the owners of the building, NOT the City... this eliminates the team continuously threatening to leave unless they get a better deal from taxpayers.
This idea of broke communities propping up Billionaire/Millionaire owners is sick... give the hockey team owners one time money to build the facility themselves and wash your hands of it!
I think we may have got that part right, here in Winnipeg.
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Post by White-Out on Feb 24, 2009 11:40:15 GMT -5
Haha...
First the NHL now Glendale. Maybe next we'll see Barrack Obama drop the ceremonial puck at center ice and announce they have "loaned" The Coyotes $500M to get them back on track.
yeah right in there dreams!
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Post by DowntownBooster on Feb 24, 2009 12:23:10 GMT -5
Glendale bails out Coyotes The City of Glendale has been quietly bailing out the money-losing Phoenix Coyotes for several months, according to documents obtained by 12 News. Based on past payments, the break could be worth up to $4 million over the course of a year. That's very nice of Glendale. Now instead of losing $ 35 million a year, the Coyotes will only lose $ 31 million. That will definitely help them turn the corner.
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Post by White-Out on Feb 24, 2009 15:06:13 GMT -5
Glendale bails out Coyotes The City of Glendale has been quietly bailing out the money-losing Phoenix Coyotes for several months, according to documents obtained by 12 News. Based on past payments, the break could be worth up to $4 million over the course of a year. That's very nice of Glendale. Now instead of losing $ 35 million a year, the Coyotes will only lose $ 31 million. That will definitely help them turn the corner. ;D ... Not unless they use my scenario!!!
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Post by Ric O. on Feb 24, 2009 19:04:10 GMT -5
Before anybody jumps all over this, the Municipal and Provincial governement did the same thing every year for the Jets. Yeah the City of Winnipeg did it as part of their agreement to NOT build a new arena for the Jets in 1984. Plus Winnipeg Enterprises was still taking their share of concessions, etc.. Not even close to the same thing.
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Post by allthisgold on Feb 24, 2009 22:48:18 GMT -5
No kidding. Compare the lease the Jets have to the current one the Coyotes have and there is no comparison.
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Post by WavyGravy on Feb 25, 2009 9:28:13 GMT -5
But in the City of Winnipeg 'bailing out' the Jets was known. From the sounds of this article the Coyotes just stopped paying their rent!
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Post by Ric O. on Feb 25, 2009 19:50:32 GMT -5
But in the City of Winnipeg 'bailing out' the Jets was known. From the sounds of this article the Coyotes just stopped paying their rent! Right, Glendale has already built the arena for the Coyotes and turned over all revenue. They've done all that they can reasonably be called upon to do...except hand over that last $4M or so. The interim operating agreement between the Jets and government was NOT a bailout. The agreement was in lieu of the fact that government the would not build the Jets the arena Shenkarow said they needed in the early 80's. In fact the agreement was in recognition of the fact that the Jets were going to have a marginal business at best in the Winnipeg Arena even 10 years before they left. The government was signing on as they were willing to be a participant in that scenario rather than put up a proper facility and turning the keys over to Shenkarow. So it was not a bailout...it was an agreement (i.e. a contract) that the government chose to enter into with the Jets and of course the deal got uglier and uglier with time as costs went up and revenue stayed flat. You can't call it bailing out the bank if your mortgage rate goes up and therefore your payments go up too. It's just one short-sighted party not smart enough to see what they may be getting themselves into and entering into the worst of 2 or more possible deals.
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Post by razorsedge on Feb 25, 2009 20:55:54 GMT -5
Either way, the city of Winnipeg spent public money to keep the Jets for as long as possible. Glendale apparently is doing the same.
Besides, I'd prefer the city that the Coyotes are located in bail them out rather than the NHL bailing them out. Thats just a complete slap in the face to Jets fans.
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Post by Ric O. on Feb 25, 2009 21:09:02 GMT -5
Either way, the city of Winnipeg spent public money to keep the Jets for as long as possible. Glendale apparently is doing the same. Besides, I'd prefer the city that the Coyotes are located in bail them out rather than the NHL bailing them out. Thats just a complete slap in the face to Jets fans. I guess the difference between Coyotes and the Jets, Glendale and Winnipeg is that Glendale actually made a huge investment in the Coyotes and gave them total control. The deal turned on everyone who tried to make it work because they simply don't have enough dedicated fans to make it work. Winnipeg and Manitoba didn't make that investment, they took the easy concession money and gave some back...then the convenient seemingly low risk deal they entered into came back and bit them in the arse, despite the fact that the fans would have done anything to keep that team here. But yeah I agree...If Glendale wants to give the Coyotes even more money, then more power to them. I can't see NHL bailing them out any more than trying to broker some kind of better deal for the team (whatever that means) and of course advancing revenue sharing money that's due.
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Post by wagner3 on Feb 25, 2009 21:27:25 GMT -5
how about this??? New concessions agreed for Coyotes Wednesday, February 25, 2009
It appears the Phoenix Coyotes playing rent free at the Jobing.com Arena is just the beginning in terms of concessions laid out by the city of Glendale, Arizona.
Sources tell Sportsnet that NHL commissioner Gary Bettman and the city of Glendale have come to terms on an agreement that will see Glendale concede at least $15 million per year to the Coyotes towards a new lease deal.
Sources also say principle owner Jerry Moyes has had three separate out of state groups show interest with one already making a formal offer. A league source tells Sportsnet they hope to have a new ownership group finalized by the 2009 NHL entry draft in Montreal.
www.sportsnet.ca/hockey/2009/02/25/coyotes_deal_report/I'm having a hard time believing this, given the state of the economy especially in Phoenix. Are tax payers going to accept such deal, when they are being forced from their homes for failing to pay property taxes??
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Post by Ric O. on Feb 25, 2009 21:41:49 GMT -5
Yeah they were talking about this on PTS tonight...everyone seemed incredulous. I can't believe it myself. I mean I could see it if they had some prospect for future success and if they had people rallying in the streets to "Save the Coyotes" but I haven't seen any footage of that happening yet.
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Post by wagner3 on Feb 26, 2009 22:17:34 GMT -5
City of Glendale denies report of $15 million break for Coyotes by Carrie Watters and Rebekah L. Sanders - Feb. 26, 2009 05:27 PM The Arizona Republic Glendale leaders blasted a Canadian news report that the city agreed to give the Phoenix Coyotes a $15 million break on an agreement with the city. The Canadian story, online on sportsnet, said an unnamed source said that the National Hockey league and Glendale "have come to terms on an agreement that will see Glendale concede at least $15 million per year to the Coyotes toward a new lease deal." One day after the story was published, Glendale officials vehemently denied the story, saying "the statement about a $15 million concession is completely inaccurate." City leaders have been negotiating with the financially struggling hockey team about its agreement, which covers revenue paid to the city such as lease payments, parking ticket fees and security fees. The Coyotes have played since 2003 at the city-owned Jobing.com Arena. City spokeswoman Jennifer Liewer said an agreement has not been reached. "When it is reached it will be brought to the city council," she said. A timeline could not be nailed down, she said. And Coyotes president Doug Moss added that the two sides are "still in the middle of negotiations." Frank Brown, an NHL spokesman, said "Business is done more effectively when it's done confidentially and internally." A record of lease payments obtained by Channel 12 News shows that Glendale has been letting the team play virtually rent-free at the arena for seven months. Based on past payments, the break could be worth as much as $4 million over the course of a year, even as the city faces budget woes in a recession. City Manager Ed Beasley said the Coyotes aren't getting a free ride: payments will be made but some have been delayed by the contract negotiations. www.azcentral.com/sports/coyotes/articles/2009/02/26/20090226gl-coyotes0226-ON-CP.html
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Post by wagner3 on Mar 7, 2009 1:06:08 GMT -5
Coyotes are current on arena lease payments to Glendale by Rebekah L. Sanders - Mar. 5, 2009 12:00 AM The Arizona Republic The Phoenix Coyotes' rent checks to Glendale are finally up to date after seven months of putting off paying the bills. The team suspended its payments on Jobing.com Arena last August due to contract negotiations, Coyotes and city officials said last week. Coyotes owner Jerry Moyes is in talks with investors about taking a majority stake in the NHL team. The team sent wire-transfer payments to Glendale just days after 12 News and The Arizona Republic reported on city financial documents showing that almost $300,000 in monthly lease payments and thousands more in other fees were missing. City and team officials did not disclose that payments had been made until questioned this week. "They are now paid up in full," City Manager Ed Beasley said Wednesday. "They made their payments like they always said they were going to do." The Coyotes pay the city a $42,708 arena lease fee each month, plus a percentage of parking fees, sales tax, security costs and repairs. In return, the city took on $180 million in debt to build the arena five years ago. Coyotes President Douglas Moss said the team made the lease payments once certain issues that were a part of months of discussions had been resolved. "We are going to stay current from here on out," he said. "We're moving along." www.azcentral.com/arizonarepublic/sports/articles/2009/03/05/20090305coyotespay0305.html
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Post by DEATHBYPOPCORN1990 on Mar 7, 2009 1:15:41 GMT -5
Whooooa, whoooa, whaoooa, when did this nonsense happen, geez you go away on vacation for a few days and h ell breaks loose..........
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