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Joyce Clark Unfiltered

For "the rest of the story"

Disclaimer: The comments in this blog are my personal opinion and may or may not reflect an adopted position of the city of Glendale and its city council.

“It hasn’t been the easiest season for fans of the Arizona Coyotes. After poor on-ice performance, the departure of many beloved veterans, and the lingering sideshow of off-ice issues, the 2014-15 campaign has not been for the faint of heart.” This was written and published by Fiveforhowling.com three years ago during what was viewed as the coming “golden age” for the Coyotes under what was presumed to be a new era of stable leadership provided by IceArizona.

There is an old tale of an emperor in a parade. He was wearing no clothes. No one remarked upon this strange scene until the emperor passed in front of a young boy who blurted out, why is the emperor wearing no clothes? Suddenly it became acceptable for everyone to acknowledge that fact.

Under the ownership of IceArizona we experienced a similar situation with everyone fearful to state the obvious for fear of being ridiculed or worse. Glendale has pointed out that this emperor (IceArizona) is wearing no clothes and this concept is now acceptable to voice.

This is from a Dan Bickley Arizona Republic story(http://www.azcentral.com/story/sports/nhl/coyotes/2017/03/09/bickley-gary-bettmans-threats-backfiring-valley/98969022/ ) from 2 days ago, “But sports fans in the Valley are smarter than they look. The Coyotes have failed on their end of the bargain, running their franchise on the cheap while depending on handouts to survive. If this team had consistently exposed Arizonans to the majesty of playoff hockey over the past decade, this conversation would sound much different. Truth is, they haven’t done anything to warrant a second home on our dime.” He went on to say, “The Coyotes didn’t help matters in a press release blaming their current location for alienating their ‘premium ticketholders and ticket sponsors.’ What does that say to the people who currently show up to games with open minds and open hearts?” And open pocket books, I might add.

Even Craig Morgan, darling of the Coyotes organization and often perceived as its unofficial spokesperson, said this yesterday in his arizonasports.com article (http://arizonasports.com/story/1050773/morgan-coyotes-need-the-right-location-to-succeed-its-not-glendale/ ) “The hard truth for the team is that it has produced four winning seasons, three playoffs berths and two playoff series wins in 13 seasons in the West Valley location that welcomed it when nobody else would. Winning sells in any market, but it’s especially important in one as fickle as Phoenix. Repetitive losing is an unwise investment of fans’ dollars and emotions.” Morgan did acknowledge, “The Coyotes’ hirings, and their delay in releasing financial statements to Glendale per their agreement, raise questions about their commitment to the partnership…”

Craig Harris of the Arizona Republic in his story(http://www.azcentral.com/story/news/politics/legislature/2017/03/09/glendale-fires-back-arizona-coyotes-glendale-arena/98967020/?hootPostID=19ace9c56558711ce78486b73ec4649f ) from March 9, 2017 weighed in with this, “The new arena managers run the facility for one-third the cost. The team’s claims that it can’t be successful in Glendale came after the city in 2015 stopped subsidizing the Coyotes through a $15-million annual arena-management deal. “

The mainstream media has finally been willing to acknowledge that the emperor is not wearing any clothes. Certainly it appears that the Arizona legislature realizes that the emperor is wearing no clothes. Sadly, the fans, always the last to give up their allegiance to a team are also beginning to see an emperor with no clothes.

In 2013, everyone rejoiced in the prospect of a new era with IceArizona. Celebrations abounded among Bettman, the new team owners and the fans. Then no one, not Bettman, LeBlanc or the fans, rejected the Glendale/IceArizona deal with commentary that heck, Glendale was a lousy location. How soon we forget. They had a home that they welcomed then. They have a home now… if they only choose to bury the hatchet.

The fans are weary of an eight year drama with seemingly the only end in sight possibly being the relocation of the team outside of Arizona. They are weary of belief in anything the team spokesperson, Anthony LeBlanc, says after a series of incendiary and sometimes misleading public pronouncements. How will they feel if the coming season turns out to be the team’s last in Arizona? Will they bother to attend games? This coming year’s attendance could prove to be the worst one yet. Perhaps ownership will hold off on dropping the bomb until after the next season is completed. Who knows?

Two unanswered questions remain. Has the team paid off the $70 loan from the NHL? And where’s Waldo…er…Anthony LeBlanc?

It’s been a rough season for all…

© Joyce Clark, 2017               

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such material. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

Disclaimer: I am presenting my views as a private citizen who blogs about Glendale issues. The thoughts and opinions expressed do not represent the Glendale city council or its leadership staff.

As I write this blog, news has just been issued that ASU has pulled out of the plan to allow the Coyotes to use property within their athletic district. Never the less, the information below may help shed some light on why legislation introduced on February 1, 2017 would not have passed. Here are links to stories just published: http://www.azcentral.com/story/sports/nhl/coyotes/2017/02/03/asu-pulls-out-plan-bring-arizona-coyotes-tempe/97460974/ and http://www.abc15.com//sports/sports-blogs-local/arizona-state-backs-out-of-tempe-arena-deal-with-arizona-coyotes?utm_source=SilverpopMailing

Don’t ya just love it? SB 1474 was introduced to the Arizona legislature this Tuesday, February 1, 2017. The media announced the proposed legislation today, Friday. Fridays are always good days to introduce anything controversial as this is sure to be. It gets buried amidst a weekend, filled with fun activities and is generally ignored by the media, much less noticed by the general public.

SB 1474 is a proposed amendment to well established state tax code. The amendment proposes the creation of a “community engagement district.” Here is the link to the bill’s full text:

https://apps.azleg.gov/BillStatus/GetDocumentPdf/447123 .  Who introduced this bill?

  • Senator Kate Brophy McGee, Republican, representing District 28 in Phoenix
  • Senator Sonny Borelli, Republican, representing District 5 of Lake Havasu City
  • Senator Karin Fann, Republican, representing District 1 of Prescott
  • Senator Frank Pratt, Republican, representing District 8 of Pinal County
  • Senator Bob Worsley, Republican, representing District 25 of Mesa
  • Representative Douglas Coleman, Republican, representing District 16 of Apache Junction and Pinal County
  • Representative Thomas Shope, Republican, representing District 8 of Coolidge
  • Representative Bob Thorpe, Republican, representing District 6 of Flagstaff                                                                    

Please note that with the exception of Senator McGee (Phoenix) and Senator Worsley (Mesa), all of these legislators represent areas outside Maricopa County…hmmm.

It proposes the establishment of a “community engagement district pursuant to Section 48-3802.”  What’s in Section 48-3802? It sets the parameters under which this community engagement district may be established. Under A. it says, “The governing body of a city in which a university athletic facilities district has been established (read ASU’s district) pursuant to Section 48-4202, Subsection C may also establish a community engagement district in the city pursuant to this section if the governing body (Tempe) determines that the public convenience, necessity or welfare will be promoted by the district’s establishment…but must satisfy both of the following requirements:

  1. On the petition of the owner or owners of all of the real property on which a public facility will be located, the governing body of the city in which the property is located, on or before December 31, 2018, must adopt a resolution as described in this section.”

Most interesting is, “The district board of governors must have received, from the municipality in which the district is located (Tempe) or from any lawful nongovernmental source (ASU? Coyotes?), a financial commitment in an aggregate amount equal to or greater than the total amount to be distributed to the district under this section…” That aggregate amount has been stated publicly as $200 million dollars toward a $400 million dollar facility.

Lastly, the district will levy and excise tax on business activity in the district of no more than 2%. This is in addition to regular, state, county and city taxes.

I’m no lawyer but upon reading this proposed bill it seems to call for Tempe to pass by resolution a community engagement district since it is the jurisdiction in which the Coyotes arena would be built. Tempe must hold a public hearing on the matter. Bring your seat cushions because that promises to be one heck of a long public hearing.

Under this proposed legislation it appears that if Tempe creates such a district, “…that the establishment of the district may result in the levy of taxes to pay the costs of improvements constructed by the district and for their operation and maintenance.” It seems as if Tempe could have the authority to levy taxes upon every resident in Tempe if there is an annual deficit in revenues produced by this community engagement district. Beware of those bearing gifts in Coyotes’ clothing…the team sold Glendale by promising that the “enhanced revenues” it would receive would cover the costs to the city annually. Never happened.

The proposed bill also seems to require some entity to put up a bond (sort of) to be held in a separate account equal to the $200 million dollars the Coyotes want from the taxpayers…you. Well, we all know it won’t be the Coyotes. So that leaves Tempe or ASU to put up the money. Most likely ASU’s money would come from private donations rather than the annual public subsidy granted by the state legislature to all 3 of Arizona’s universities. I suspect private donors expect their money to go toward improving student education. I’m not so sure they’d be happy to learn that their money is actually going to guarantee the development of a private, for-profit entity such as the Coyotes.

I believe there is a good case to make for why the Coyotes belong in Glendale:

  • The Gila River Arena was built in 2003…specifically for the Coyotes.
  • The arena is 14 years old and is still one of the best, state-of-the-art arenas in the National Hockey League.
  • Glendale has proven its loyalty to the Coyotes by paying the NHL $50 million dollars to run the arena after Jerry Moyes declared bankruptcy in 2009. That act of loyalty nearly drove the city into bankruptcy. You would think that NHL Commissioner Gary Bettman would be loyal to Glendale and stand behind keeping the Coyotes in Glendale.
  • The Coyotes pay $500,000 in rent annually and have the use of the arena for all practice games. This is a unique to the Coyotes. Most NHL teams own and operate their own separate practice facilities at their own expense.
  • The Coyotes have the second sweetest arena deal in the entire Hockey League. The team gets 100% of the parking revenue, merchandise sales, concession sales and ticket surcharges as well as 80% of the naming rights.
  • Between 2015 and 2050, the West Valley will have an estimated population of 1.2 million; Phoenix will have an est. population of nearly 700,000 and the East Valley nearly 650,000. Between 2000 to 2010, the West Valley added about 300,000 people, Phoenix added about 125,000 people and the East Valley almost 250,000 people. MAG predicts future population growth in the West Valley will be nearly equal to the combined population growth of both Phoenix and the East Valley.
  • Well respected economic analyst Elliot Pollack predicted that Glendale will become the geographical center of the entire Valley
  • The new loop 202 bypass route known as the South Mountain Freeway will be completed by 2019 providing a significantly improved connection between the East and West Valleys

Anthony LeBlanc decided to teach Glendale a lesson when the city cancelled the contract that included a direct subsidy to the team. He is not acting in the team’s best long-term interests. While he gets short-term revenge, he fails to acknowledge and recognize the tremendous long-term growth of the West Valley and that is where his customers will come from. How long before he decides that the East Valley was a mistake because a booming West Valley customer base doesn’t want to commute eastward? After all, that is, in large part, his rationale for trying to move to the East Valley.

There have been many chapters written in the on-going Coyotes’ story. Some of those chapters were written by the National Hockey League; some of those chapters were written by the City of Glendale. But the latest chapters of turmoil and uncertainty about the Coyotes’ fate were written by the Coyotes themselves. The team attributes its lousy attendance to East Valley fans unwilling to commute to the West Valley. Perhaps they should acknowledge that the team’s performance is driving the lack of attendance these days.

There is no doubt that the Coyotes should remain in Glendale, Glendale has paid the price to keep them (something that the most rabid of Coyotes fans and LeBlanc fail to acknowledge). The Gila River Arena is a Class A hockey facility. The Coyotes have a very good revenue deal. With the explosion of growth occurring in the West Valley, this is the best location…for now and into the future.

It’s time for LeBlanc to make peace…not war…with the arena manager, AEG, and the City of Glendale. Glendale has proven its commitment to the Coyotes. It’s time for the Coyotes to prove its commitment to Glendale.

© Joyce Clark, 2017        

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such material. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

On Monday, November 14, 2016, Anthony LeBlanc, representing the NHL Arizona Coyotes, announced the possibility of a Coyotes move to a new arena in the East Valley. Note that I, as others, used the word “possibility.”

Here are the links to major stories about the announcement:

As one read media reports or watched TV reports about the announcement the impression given was that it was a done deal and we could expect construction of a new arena immediately. A very few of the media did admit that the Coyotes face tremendous obstacles. Everyone should take a deep breath and sit back and wait until next June to learn the results of on-going negotiations. 

What was really said at the announcement? Simply this…Catellus Development Corporation, master developer of the ASU Athletic Facilities District, and the Arizona Coyotes are in negotiation. In 2010 ASU was successful in getting the Arizona legislature to approve an athletic district, a special revenue district for lands owned by state-supported universities, which could be used as a funding source for some of its athletic capital projects such as the $268 million dollar renovation of Sun Devil Stadium. Shortly thereafter, in 2014, ASU announced Catellus as its master developer of the Karsten land.

The Catellus Development Corporation is described by Bloomberg as, “Catellus Development Corporation, a real estate investment trust (REIT), engages in the ownership and development of primarily industrial properties in the United States. The company operates in Core segment, and Urban, Residential, and Other segment (URO). Core segment manages and leases its rental portfolio, as well as acquires and develops suburban commercial business parks for its own rental portfolio and for selling land and/or buildings to users and other parties. URO segment manages residential projects and urban development activities, as well as the desert land sales. As of July 28, 2005, the company’s rental portfolio totaled 41.1 million square feet. It operates principally in California, Illinois, Texas, Colorado, Georgia, and New Jersey. The company has elected to be treated as a REIT and would not be subject to federal income tax, if it distributes at least 90% of its taxable income to its shareholders. Catellus Development is headquartered in San Francisco, California.”

What I found to be most interesting about Catellus is that was a spin off of a major railroad company. This is from http://www.muelleraustin.com/about/catellus/ : “Catellus was founded in 1984, following a proposed merger of two railroad giants. When Santa Fe Industries (which owned the Atchison, Topeka and Santa Fe Railway) proposed a merger with the Southern Pacific Company (which owned the Southern Pacific Railroad), the new company created a wholly owned subsidiary named the Santa Fe Pacific Realty Corporation. The subsidiary was charged with managing the company’s non-railroad landholdings and turning unproductive parcels across the country into revenue generating assets. In 1990, after the merger of the railroads was denied, Santa Fe Pacific Realty Corporation spun off as a publicly traded company named Catellus Development Corporation (NYSE:CDX).”

Everyone by now is aware of the proposed site location and the proposal of a 16,000 seat, $400 million dollar Coyotes arena. What the announcement signals is Catellus has granted the Coyotes until June 30, 2017 to review the land and get the political, developmental, architectural and financial plans required to build it.

Take special note of two words…political and financial plans. Where were the political figures as this announcement was made? Governor Ducey, Phoenix Mayor Stanton, Tempe Mayor Mitchell, ASU President Crow or anyone representing the state legislature were all AWOL.  In fact, it was reported, “Phoenix Mayor Greg Stanton who has pushed for a new hockey-basketball arena downtown, threw cold water on the Coyotes’ plan.”  He said, “A deal is far from complete, and appears to require new levels of support from both state of Arizona and City of Tempe taxpayers. My thinking hasn’t changed: Building a third professional arena in this market doesn’t make sense, especially when it would likely require new public dollars as a part of the deal.” The Governor’s office declined to comment. Mayor Mitchell of Tempe didn’t even know about it until the public announcement was made. Even Deputy Commissioner Daley’s comment was lukewarm, “I’m very pleased with where they are. I think this is an incredible opportunity for an exciting new future in the Valley.” Coyotes coach Dave Tippett reflected what many others are feeling these days when there is an Anthony LeBlanc announcement, “It’s good news. It’s early. A lot of us have been through a lot of this before. Hopefully, everything turns out as wonderful as it sounds.”

The Coyotes expect the state legislature to create a special taxing district that would require taxpayers to pay $200 million of the $400 million needed. They floated the idea last legislative year and were told to come back in 2017 for possible consideration. General sentiment is that the Republican-controlled legislature will view the Coyotes’ latest request for public subsidy with a decided lack of enthusiasm.

One has only to look at the snapshot poll run recently by TV Channel 10’s Sean McLaughlin. At last check 31% of the poll respondents supported using tax dollars for construction of another sports facility. 45% of the respondents did not support use of public money and 24% wanted the Coyotes to remain in Glendale. If this poll is an accurate gauge of public support, it isn’t there with 69% opposed to using taxpayer dollars. It appears the public/political will to use $200 million dollars of taxpayer money for another sport facility is no where to be found.

As for the financial aspect, the Coyotes said they would pony up $200 million dollars. Let’s revisit some history. When IceArizona purchased the team, relatively speaking, very little of investor money was used. Instead two loans were granted for the team’s purchase… one from the National Hockey League and one from Fortress investment. The actual cash investment by the IceArizona investment group was less than a third of the purchase price. The investment group came out of the gate heavily in debt. It is no secret that the Coyotes lose millions every year. That’s why the City of Glendale’s annual taxpayer subsidy was so important to them. It made the annual bleeding a little less.

If the Coyotes really want to control their own destiny, why not just buy Glendale’s arena? It certainly would be cheaper than building a brand new $400 million dollar facility and it would give them the advantage of having complete control of the building and all of the revenues it generates.

I have heard but not enough for ironclad confirmation, that AEG, new manager of the Glendale arena, offered the Coyotes a smokin’ deal. Reportedly LeBlanc’s response was to reject the offer and walk out of the meeting.

Where are the Coyotes going to find $200 million dollars for their portion of the deal? There are only so many Andrew Barroways around. Mr. Barroway currently owns 54% of the team and according to Forbes: http://www.forbes.com/teams/arizona-coyotes/ , the team is valued at $220 million as of November, 2015. Here are additional facts provided by Forbes:

  • Price Paid: $170 M
  • Year Purchased: 2013
  • Revenue2: $92 M
  • Operating Income3: $-4.5 M
  • Debt/Value4: 63%
  • Player Expenses5: $60 M
  • Gate Receipts6: $20 M
  • Wins-to-player cost ratio7: 62
  • Revenue per Fan8: $11
  • Metro Area Population: 4.5 M

It should be disconcerting to Catellus, ASU and Tempe to hear that the Coyotes hope the project “pays for itself” or as Barroway says the Coyotes finally might break even with a new Tempe arena. Glendale should be an object lesson for them. Even with all of the revenue sharing schemes in its deal with the Coyotes, the Coyotes’ projections never became reality and those revenues never compensated Glendale for its annual subsidy.

LeBlanc brought much of the continual speculation and fan pressure upon himself. He repeatedly assured everyone that an announcement about a new site was forth coming. Before the draft…after the draft…beginning of the summer…end of the summer. What he provided publicly with this announcement is merely a fig leaf designed to cover his…

I believe the Coyotes best option remains the Glendale arena. I, personally, would like to see them stay.Glendale’s City Manager Kevin Phelps said it best, “the city will keep operating as if their arena will house the Coyotes long-term, noting that new arenas are very expensive to construct. I don’t think the last chapter of this book has been written — and until it is written, we’re going to keep doing our part to see how we can add value to the Coyotes.”

© Joyce Clark, 2016        

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such material. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

It has been 18 years and 116 days since the city’s pledge to build the West Branch Library.

I, as I suspect many other fans, was surprised and quite frankly shocked to learn of the firing of Coyotes General Manager, Don Maloney. Now, I am no more than a casual Coyotes fan, similar to many fans in the Valley. This season I watched games on TV and attended a few.

I have never been thrilled with LeBlanc and the current ownership group but what is, is. They are large and in charge – one adapts.

I first met Don Maloney when the NHL took over the team after Moyes’ declaration of bankruptcy. He impressed me then and he continues to do so. The NHL was never a hands-on manager and quite frankly, that allowed not only Maloney but Tippett as well, to fly…and they did. Sarah McLellan, sports reporter for the Arizona Republic, in an April 11, 2016 story, describes Maloney’s performance. Here is the link:

http://www.azcentral.com/story/sports/nhl/coyotes/2016/04/11/arizona-coyotes-seeking-new-leadership-gm-after-firing-don-maloney/82920744/ .

With him at the helm, the Coyotes went 326-291-87 and made three playoff appearances. The highlight came in 2012 as the team captured its first division title and advanced to the Western Conference finals for the first time in franchise history.

“After the 2009-10 season, Maloney was honored with the inaugural General Manager of the Year Award for assembling a team that achieved the organization’s most successful season to date. The Coyotes went 50-25-7 for 107 points and qualified for the playoffs for the first time since 2002.

“Actually, much of Maloney’s best work came after the team was dropped into bankruptcy in 2009 and managed by the NHL for the ensuing four seasons before the current ownership group purchased the club in 2013.

“Despite a hamstrung budget and limited resources, the Coyotes rattled off three consecutive seasons of at least 40 wins from 2009 to 2012.”

There is no doubt that Maloney is one of the best general managers in the business. From the outside, looking in, could it have been that Maloney had conveyed that he disagreed with the current direction and before he resigned, the owners fired him? Often these situations are handled more gracefully with a joint statement of a mutual parting of the ways.

Maloney got his direction and goals in running the organization from the franchise owners. Apparently when left to his own devices under the ownership of the NHL he succeeded. What direction did the new IceArizona owners give to him from 2013 onward that resulted in such a dismal performance?

LeBlanc, at a press conference announcing the firing said, “He absolutely has done a great job of laying the groundwork for the future. However, we believe a change in leadership is needed in order to move our franchise to the next level.” LeBlanc went on to say, “Ownership is completely committed to winning and winning long-term here in Arizona. Today was the first step in moving us to the next phase as an organization.” The question many fans are probably asking is what exactly is this next phase?

Maloney reacted to his firing with the following, “Ownership have (sic) the absolute right to hire the person they are most comfortable with to run their hockey organization. They felt a change was needed at this time. I have no hard feelings or regrets whatsoever.” There is no doubt that Don Maloney is a class act and a consummate gentleman. He is articulate and intelligent and worked miracles during the most turbulent times of the Coyotes’ history. From the outside looking in, the manner in which Maloney’s leaving was handled, was not a class act.

© Joyce Clark, 2016

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such material. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

It has been 18 years and 75 days since the city’s pledge to build the West Branch Library.

On February 26, 2016 Arizona Sports ran a story on Anthony LeBlanc’s reaction to Mayor Jerry Weiers’ remarks at his State of the City address. Here is the link:  http://arizonasports.com/story/566510/arizona-coyotes-ceo-glendale-may-want-us-to-stay-but-not-being-realistic/ .

In his prepared remarks with reference to the Coyotes the Mayor said, “I need to be clear about this. I want the Coyotes to stay in Glendale. The city wants the Coyotes to remain in Glendale. We have, since day-one, invited them to remain engaged in this process.”  In his recent remarks Mr. LeBlanc said this about the Coyotes’ refusal to engage in the bid process to manage Glendale’s arena, “…the team did not submit a bid to manage the arena because it refused to participate in a ‘flawed process’.” LeBlanc did not elaborate on his characterization of a “flawed process.”

Mr. LeBlanc went on to say, “I think they do want us to stay, but I don’t think they’re looking through a realistic lens of what that means.” Translate this statement to read that in his view “a realistic lens of what that means” is the Coyotes would only stay if Glendale continues to subsidize a portion of their annual loss. LeBlanc, et. al., may have retired their Fortress loan by adding additional owners but don’t forget they still owe a boat load of money to the NHL for another loan that covered buying the team.

What governmental entity is not only going to build a new hockey arena but also subsidize the Coyotes’ annual loss? It’s Glendale all over again. Tempe? Scottsdale? Probably not. Phoenix? Perhaps it can bury its subsidization of the Coyotes within possible plans to build a new facility for joint use by the Suns and the Coyotes.

The Coyotes want to manage their own facility. Then they collect all of the revenue generated by non-hockey events and they can claim a management fee that not only covers their cost to manage but off-sets their annual loss.

LeBlanc praised a recently approved deal between Broward County, Florida and the NHL Florida Panthers. The deal allows the Panthers to get nearly all of the arena revenue and reduces any profit-sharing between the Panthers and the county. Since the Panthers first season in 1993-94 the Broward county’s public subsidy of the team has been $342 million (an estimated $14 million a year). It should be noted that the Panthers lost $36 million last year and another $27 million the previous year. Of course LeBlanc would think that’s a wonderful deal. Reality is that the majority of NHL teams can’t survive without public financial support. That has been the model for years but many governmental entities are under financial pressure and can no longer afford this type of model. It is a model destined to die in the future as the public clamors for sports franchises to pay their own way.

LeBlanc said three options are still being discussed. They are a shared arena with the Phoenix Suns in downtown, a partnership with Arizona State University or an arena in Scottsdale’s Loop 101 corridor. Hey, if the City of Phoenix wants to pony up and pay the Coyotes to play downtown, congratulations to all. Previously the Suns and the Coyotes shared an arena downtown and it was the fans who suffered with terrible sight lines while watching the games.

Is the Arizona State Legislature delusional? It has budget problems. Will it allow a portion of its allocation of state public money to be used to pay for a new hockey arena instead of educational purposes? It seems doubtful that Scottsdale will wish to pay the Coyotes to play in their town. It would be déjà vu as they refused to do so in 2001.

LeBlanc said if a new arena is built it will take at least three years. He went on to say they would “rather not move twice in five years.” Here is where the situation becomes problematical. Glendale and IceArizona currently have a two year agreement that allows IceArizona to manage the arena for $6 million per year. The first year of that agreement is nearly up leaving only one more year of IceArizona’s management. After that it is assumed AEG, the presumed new arena manager, and IceArizona will have to negotiate short-term tenancy for two more years. Will they be able to craft a mutually satisfactory tenancy arrangement? Then the question becomes if IceArizona can live with the deal for two years, why can’t it live with the deal permanently? Can LeBlanc and company afford to rebuild its fan base in another part of the Valley while it continues to rebuild the team?

No matter what the outcome I continue to have greatest respect and admiration for the players. They have endured a great deal since Jerry Moyes put the team into bankruptcy in 2009. They are a great group of men who certainly deserve more stability than they have had. They deserve better. Let’s see if cooler heads can prevail and a deal that benefits all entities can be achieved permanently. Isn’t it time?

© Joyce Clark, 2016

 FAIR USE NOTICE

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It has been 18 years and 23 days since the city’s pledge to build the West Branch Library.

Over the holidays there wasn’t much news about the Coyotes. Now that we are in a new year on January 7, Paul Giblin had a story in the Arizona Republic citing the results of a recent poll on the subject of a Coyotes relocation. Here is the link: http://www.azcentral.com/story/news/local/glendale/2016/01/07/poll-arizona-coyotes-should-stay-gila-river-arena-glendale/78314406/ . He reported, “Approximately 54 percent of frequent voters in Maricopa County surveyed believe the Coyotes should remain at Gila River Arena in Glendale, according to the poll that was conducted Dec. 29 for Phoenix-based public-relations firms MBQF Consulting and Marson Media.”

The problem for any other governmental agency attempting to locate the Coyotes will be to garner enough public support to pay for yet another very expensive sports facility. Thirteen years ago, in 2002, the cost to build the Gila River Arena was about $180 million dollars. The cost today to build the same type of facility has exploded. It is expected that the cost would be in the $400 million dollar range. The sixty four dollar question is can enough public support be generated in some other Valley community to use precious and scarce taxpayer dollars?

Public support would probably be found if the economy was booming and world affairs were stable. That is not the case. The economy staggers along as the middle class continues its death spiral. The general public fears more ISIS inspired events on our soil as the Middle East explodes into further turmoil while China’s stock market takes a dive and North Korea’s bomb tests reminds us that we, as a nation, are vulnerable. This is not an environment that is conducive for public sentiment to use taxpayer dollars on yet another sports facility.

Anthony LeBlanc, one of the Coyotes’ owners and apparent Public Information Officer, has had to walk back some of his previous assertions about the Coyotes.  He has hired a sports consultancy firm to assist him in his quest for a new location. It seems likely that a location in any other Valley municipality will be very difficult, if not impossible, to achieve. His only hope may be can he cut a deal for another new facility funded and built by the Gila River Pima Maricopa Indian Community? His refusal to bid for management of the Gila River Arena may come back to haunt him.

Which leads to another bit of recent news. The City of Glendale received 3 bids to manage its Gila River Arena submitted by AEG Facilities, Spectra by Comcast Spectacor and SMG. All three are “big guns” in the sports management business. All have the experience and knowledge required to successfully manage Glendale’s arena. Currently the bids are TOP SECRET. In the next few weeks Glendale’s senior management staff and city council will each receive separate briefings regarding the specifics of each proposed bid. This management deal is more complicated because the Coyotes will play in the arena for another season and it is expected the chosen management company contract would begin this July 1, 2016. That means that the preferred management company and the Coyotes would have to negotiate revenue streams for one year of Coyotes occupancy. There is always the remote possibility that a deal could be crafted comfortable enough for the Coyotes to create an incentive for them to stay at the Gila River Arena beyond their final year.

The city council may be ready to vote on an arena manager as early as February 9, 2016. If a vote is not taken around that date expect that one of the bids is in further negotiation before final acceptance. The public, as is the case with mushrooms, will be left in the dark and fed horse manure. There is no opportunity for public input in this process. While everyone understands the theory of representative government they also understand the theory of transparency. It seems that once again “father knows best” trumps the public’s right to know.

© Joyce Clark, 2016

FAIR USE NOTICE

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It has been 17 years and 237 days since the city’s pledge to build the West Branch Library.

Peter Corbett’s article in the August 21, 2015 edition of the Arizona Republic reports settlement of a 2014 law suit between the Coyotes and Jason Rose of Rose+Moser+Allyn Public & Online Relations firm. Here is the link:  http://www.azcentral.com/story/news/local/glendale/2015/08/21/coyotes-settle-lawsuit-scottsdale-polo-event/32112415/ .

The Coyotes had hired Rose’s public relations firm to work to defeat a citizen referendum in Glendale designed to block the arena deal between the Coyotes and the city. The referendum was unsuccessful and the Coyotes subsequently owed the firm a base fee of $25,000 and a $250,000 bonus. To pay off the debt the Coyotes were supposed to sponsor the Bentley Scottsdale Polo Championships (Rose’s baby) to the tune of $55,000 annually and give two front row hockey tickets for 8 games a season for 5 years.

Then LeBlanc seems to have stiffed Rose. The public relations firm got its base fee of $25,000 and one year of sponsorship in 2013…not the $55,000 promised but only $25,000. After that the spigot closed and the Coyotes did not pay another dime.

The judge handling the case granted the public relations firm’s motion for a jury trial. Can you imagine? Another round of negative publicity from a jury trial for the Coyotes? You can be sure after that motion was granted the real negotiation for a final settlement began. Last week both sides finally settled.

What is in this final settlement? No one knows. The terms are undisclosed and no one is talking…not the Coyotes and not Rose. Rose probably got his pound of flesh or he wouldn’t have settled. LeBlanc probably shouldn’t have promised what appears he didn’t intend to deliver.

It raises an issue of concern. The city’s cancelling of the original lease management agreement was a wise move. What was LeBlanc failing to report that the city had no means to verify? If and when the city reenters negotiation with the Coyotes for another long term agreement hopefully the city will include protections and means of verification that were absent in the original agreement. However, it would be prudent for the city to wait until the RFP bids have come in. They will be very helpful in determining fair market values. This time around there are lessons to be learned from recent history. Let’s hope the city does its homework.

© Joyce Clark, 2015

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner. Read more

It has been 17 years and 214 days since the city’s pledge to build the West Branch Library.

On July 24, 2015 at a special voting meeting the Glendale City Council unanimously passed Ordinance 2949 and the First Amendment to AMULA Final. With these actions the city and Ice Arizona agreed to dismiss all lawsuits and also settled the issue of the million dollars sitting around in a special escrow account as a result of the 2009 bankruptcy filing.

Before the Kumbaya vote Anthony LeBlanc, spokesperson for the ownership group said, “We’re not going to renegotiate…never, never, never.” Oops. The afternoon of the fateful vote in a radio interview with Roc & Manuch, LeBlanc was heard to say, “We haven’t been open with them (the city).”And, “We haven’t been good communicators.” And, “They’ve done well for the taxpayers. They’ve got a win.” When asked if Ice Arizona would consider buying the city’s arena, LeBlanc said about arena ownership, “That’s not the business we’re in.” Should we believe him in light of his long history of “erroneous” statements?

Councilmember Gary Sherwood, IceArizona’s staunch advocate, in an earlier, same day radio interview (July 24, 2015) with Roc & Manuch, said that he had publicly staked out a position that “he was not going to vote.” We can assume his action was to be a public display of disapproval for council’s treatment of his good friends, the IceArizona owners. In his traditional flip-flop fashion, he reversed himself with a little help from his friends. He revealed that the night before the vote “he had discussions with ownership” (presumably Anthony LeBlanc). His remark is interesting in and of itself for the only meeting council had prior to the vote was an executive session on July 20, 2015.  Did he share the conversations and results of that executive session with his good friend LeBlanc? Sherwood went on to say that “ownership wanted a 7-0 vote in support of the new deal.” Always willing to oblige his friends, Sherwood did a 180 and not only voted but voted in favor and made sure his pal, Councilmember Sammy Chavira did as well.

There has been considerable opining in the news media and on social media as to whether this is a good deal…for anybody. I contend that it is a good deal for Glendale if for no other reason than a $197 million dollar liability is gone…poof! That action should warm the hearts of the bond rating agencies. That figure represents the annual lease payments for the balance of the original lease management agreement.

The city gained in reducing the management fee to $6.5M from the original $15M annually. The actual language is: “10.1. Management Fee. Commencing on the Amendment Effective Date, and during the remainder of the Term, in consideration of the Arena Manager’s agreement to perform the management and other services set forth in this Agreement to pay all operating and maintenance costs associated with the Arena Facility (other than capital costs as provided herein), provided there is no breach by the Team Owner of the obligations under the Non-Relocation Agreement or a material breach by the Arena Manager of its obligations under this Agreement, the City shall pay to the Arena Manager, by wire transfer of immediately available funds to an account specified by the Arena Manager, the annual Management Fee in the amount of Six Million Five Hundred Thousand Dollars ($6, 500,000), paid in quarterly (on a three calendar month basis) installments in arrears on or before each October 1st, January 1st, April 1st and July 1st during the Term.” The city was losing an estimated $8+M a year under the original lease agreement even with the shared revenue it received. This management fee is budgeted within the city budget for Fiscal Year 2015-16.

The city also won two important concessions. It now has its own “out” clause with this agreement which ends in two years, in 2017 with recognition that “19. Termination Date means June 30, 2017.”  It now has the freedom to choose its own arena manager in a year’s time as stated, “46. Change of Manager. Notwithstanding what may otherwise be proved in this Agreement or in this Amendment, the City shall have the option to replace the Arena Manager at any time after June 30, 2016…” Everyone hopes the city will craft an RFP immediately and put it out on the street in a time frame appropriate to exercising that option.

The city achieved what can be considered as payback. IceArizona will no longer use former City Attorney Craig Tindall or former Assistant City Manager Julie Frisoni in any capacity including as a consultant. It is in #4 of the Settlement Agreement which states, “No Other City Employee Involved with Arena Agreement. The Parties represent and warrant that, as of the Effective Date, to the best of their individual and collective knowledge, information, and belief, no other former employees of the City, other than Craig Tindall or Julie Frisoni, have become consultants to or employees of IceArizona, in any capacity, since July 8, 2013. Ice Arizona represents and warrants that neither Tindall nor Frisoni has, in any way and to any extent, no matter how substantial or insubstantial, been involved in initiating, negotiating, creating, drafting, or securing the First Amendment. In reliance on these representations and warranties and those in Section 6, the City, City Council, City Manager, and City Attorney, collectively and individually, represent and warrant that they will never in the future seek to cancel or void the Arena Agreement of the First Amendment based o the involvement of Tindall or Frisoni, no matter how substantial or insubstantial, in initiating, negotiating, crating, drafting, or securing the Arena Agreement or the First Amendment on behalf of Glendale, so long as Tindall and Frisoni are not employed or retained as a consultant by IceArizona or any of its affiliates, divisions, parent entities, or subsidiaries.” The language is quite specific. That is just plain Karma for Tindall and Frisoni.

Did IceArizona get anything out of the deal? It stopped a lawsuit in which ultimately the city would have prevailed. Note that the new deal contains a lot of verbiage enjoining the city from suing IceArizona, ever, for any reason, regarding Tindall and Frisoni. The major gain was that it bought IceArizona time…time to decide its future. If the owners cannot put a decent team on the ice this year their future is bleak and they know it. It’s not a matter of distance that fans must travel to a game. That rationale has been over used. When teams win people will eagerly travel long distances to watch the winner. A team that is a contender also fills seats in suites and attracts more expensive advertising dollars…the lifeblood of any team. Each extra playoff game earns in the neighborhood of a million dollars and can spell the difference between a bottom line in the black and a bottom line in the red.

Another important issue finally resolved is that of distribution of the bankruptcy Operating Reserve Account as follows: “10. The Parties acknowledge and understand that in the Bankruptcy Settlement, subject to approval by the Court, the Bankruptcy Lawsuit (the “Bankruptcy Court”), the Operating Reserve Account shall be distributed as follows: $350,000 to the City, $10,000 to the David Reaves, Chapter 7 Trustee of the Arena Management Group, L.L.C., and $640,000 to Ice Arizona.”

In the same radio interviews, Sherwood stated that he wants “to see a new contract (with IceArizona) in 6 to 9 months, by April of 2016.”  LeBlanc stated IceArizona “wants a contract extension immediately” to bring “certainty.” Obviously it is an option both parties will need to pursue. Let us hope they can be successful in crafting a lease extension that is not build on the backs of Glendale’s taxpayers. No one can object to a lease agreement that is fair and equitable.

Be advised it doesn’t matter what the action or situation is, municipal governments do not move quickly. While an immediate contract extension is IceArizona’s goal, the caution is to not become frustrated if the action is not completed quickly. I learned this lesson the hard way. When I first joined city council I had ideas for projects in my district. I mistakenly thought they could be accomplished instantly. Not so. I became satisfied if a project could be completed within a year. It’s the very nature of government. All action is slow, overly deliberate, and far more complicated than it often needs to be.

Everyone appears to be relieved the issue is resolved for now. Let’s hope this positive action leads to further positive outcomes for both parties.

© Joyce Clark, 2015

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

It has been 17 years and 171 days since the city’s pledge to build the West Branch Library.

I have not only read Glendale’s motion but printed it out. Here is the link if you wish to read the motion: City of Glendale motion June 18 2015 . I have read and reread the motion several times. I suggest that you pay particular attention to the footnotes. In some aspects they are as revelatory as the emails provided in the brief.

Glendale could not have chosen a better attorney to represent its interests in its decision to cancel its contract with IceArizona and subsequent litigation. Here is a link to Cynthia Ricketts’ biography: http://sacksrickettscase.com/our-team/cynthia-a-ricketts/ . She is well respected by her peers and has extensive expertise in the area of litigation that the city requires.

If you noted in state statute A.R.S. § 38-511 it refers to any person “significantly involved in initiating, negotiating, securing, drafting or creating of documents.” Many have focused on the word “negotiating” especially with reference to Julie Frisoni. Please go to Frisoni’s PR website (http://www.frisonipr.com/whoweare/). This is a direct quote from her site, “Crisis communications, including NHL Coyotes negotiations and the near bankruptcy of a city.” It appears that Ms. Frisoni can’t have it both ways. There seems to be a conflict (no pun intended) between her claim on her website citing experience in “NHL Coyotes negotiations” and her recent public denials that she was merely a Communications Director.

Based upon my personal experience as a councilmember from 2000 through 2012 Ms. Frisoni was a close confidant of Ed Beasley, former City Manager, and Craig Tindall, former City Attorney. I did not have a great deal of interaction with Ms. Frisoni for I lacked trust in her. While she may or may not have had a hand in direct, face-to-face negotiations of the currently cancelled contract it appears quite evident that she played an essential role in securing (and insuring) council approval of the contract.

Prior to the contract’s approval by city council, on June 26, 2013, she sent talking points in support of the contract to Councilmember Chavira. In fact, Councilmember Chavira, one of only 2 council votes (the other being Sherwood) that did not support the recent vote to cancel the contract, is using many of those same talking points in his current Glendale Today show on Glendale’s Channel 11. Frisoni also sent an email on June 30, 2013, to the four councilmembers in support of the contract with IceArizona: Councilmembers Sherwood, Chavira, Knaack and Martinez. She seems to have deliberately omitted those that did not support it. In that email she passes on Jeff Teetsel’s (Westgate manager) arguments supporting passage of the contract.

I am quite unhappy with the alleged actions of former city attorney Craig Tindall. When city council originally hired him I was quite pleased. He appeared to be competent and articulate. In 2011 I began to hear rumors that he was supportive of an outside group interested in buying the Coyotes. Back then no one could or would tell me who the group was. Reading the emails between him and Anthony LeBlanc, one of the current Coyotes owners, I was unaware of their obviously close relationship dating back to at least 2010.  Little did anyone know they were meeting at their “usual starbucks.” It is now very difficult to accept the current parsing of words in an effort to minimize Tindall’s involvement in negotiating the IceArizona contract. It appears he was involved up to his lips.

It made me recall an incident at the end of 2012. The city was in the process of negotiation with a Coyotes team purchaser, Greg Jamison. I called Mr. Tindall with some technical questions about the deal. Cryptically, at the end of our telephonic conversation he remarked that if the Jamison deal didn’t make there was another group waiting in the wings. When I asked who, he refused to respond. In hindsight it now makes perfect sense but it raises more questions for me. I remember Interim City Manager Horatio Skeete telling me that Tindall appeared to be stalling and would hold Jamison documents on his desk for days. Skeete would make repeated requests for them which eventually would be fulfilled. Did Tindall deliberately sabotage the Jamison deal in an attempt to make available the opportunity for LeBlanc, et. al.? I honestly don’t know. You will have to decide for yourselves.

Tindall’s seeming self dealing is quite disappointing. As far back as April of 2010 in an email exchange between Daryl Jones of Ice Edge (precursor to IceArizona) Jones says they enjoyed working with Tindall and Tindall responds with “Now that’s an offer.” Was that Tindall’s subtle signal that he was angling for a job with them? Who knows? You decide. Or what about Tindall’s March, 2011, email exchange with LeBlanc urging LeBlanc to take a look at investing in a local medical device company? That action would seem to reinforce the notion that they had a close relationship. Or how about LeBlanc’s asking Tindall in October of 2011 if it was time to have a “confidential chat with Ed” (Beasley) as well as an email exchange between Tindall and LeBlanc about LeBlanc’s May, 2010 meeting with Steve E(llman)? What were these all about? We now know that LeBlanc wanted to buy the Coyotes even before the Jamison offer. We now know through more emails of Tindall’s effort to break a roadblock on July 26, 2013 (after the contract is approved) regarding the city’s paying IceArizona’s lenders directly? He emailed the newly hired City Manager (now former City Manager) Brenda Fischer apparently asserting that it was a simple administrative matter and appears to be urging her to take action.

The email exchange between former Mayor Scruggs and former City Manager Beasley are revealing as well. It appears as if the mayor was determined to get LeBlanc’s Lakehead Yale Sports Holding LLC “Plan B” before the city council in March of 2012. Once again Tindall’s name comes up when she says, “I have checked with Craig Tindall and Mr. LeBlanc’s letter is eligible for discussion under the items as posted.” Tindall seemed to be advocating for any LeBlanc deal.

The emails provided in the city’s motion to modify the Temporary Restraining Order are troubling. They are facts. They are the words of the principals involved. They are damning and not easily explained away.

I end with excepts from an email memo to the entire city council dated June 25, 2013 (a few weeks before council approval) from then Interim City Manager Dick Bowers:

  • “Contrary to what might appear in the papers I don’t see this as a ‘done deal’. Far from it. Discussions continued over the weekend and we have come only slightly closer to comfortable than before. Gary B(irnbaum) has helped to illustrate to the Renaissance group’s (eventually IceArizona) attorney the concerns we have. I suspect this has given them a degree of discomfort.”
  • “Glendale cannot afford a failure. The potential of failure exists as a dark shadow in the absence of the investors standing by their own numbers with confidence enough to simply take them for themselves and do the deal for 6.5.”
  • “While there are many ways to describe the Renaissance’s reluctance I keep coming back to that same discomfort of Glendale having all the risk in this deal. My concerns could mean nothing or they could represent an existential question that must be considered. Will this work for the benefit of the City of Glendale and what makes us firmly believe that it will?”

Mr. Bowers’ crystal ball was certainly working that day yet a few weeks later, 4 councilmembers, Yvonne Knaack, Manny Martinez, Gary Sherwood and Sammy Chavira voted in favor of the IceArizona lease management deal. I can understand Sherwood and Chavira’s approval votes. They appear to have been blindly joined at the hip with each other as well as IceArizona. The pro votes of Knaack and Martinez are not so easily understood. Each cited the well being of Westgate as a motivator for their decisions. It is troubling that they appear to have put the well being of Westgate over the well being of the City of Glendale. Why did they not heed the words of Interim City Manager Bowers?

No matter. What’s done is done. The discovery of Tindall’s and Frisoni’s actions provide the city with an opportunity to rectify one source of its annual bleeding…whether one uses $15M or $8.7M a year as the loss figure for the city. Many point to the annual debt payment for the Camelback Ranch Spring Training Facility (CRSTF). They say why focus on the arena when CRSTF is just as much of a financial drain. It is. I suspect in due time that financial albatross will be addressed. Development that should have occurred surrounding this facility never materialized as a result of the national recession. Without any promise of current economic development it is an issue the city must address in light of the fact that this council continues to fail to rein in city expenditures.

The pity of it all is the devastation caused to the coaches and players of the Coyotes team. They have been through so much since Moyes declared bankruptcy in 2009. None of it was of their making. They have become undeserved collateral damage. I hope and pray that their futures will once again become whole and they can take pride in playing under the Coyotes banner.

© Joyce Clark, 2015

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

It has been 17 years and 107 days since the city’s pledge to build the West Branch Library.

USA Today photo

Andrew Barroway, Anthony LeBlanc Courtesy USA Today

On December 31, 2014 we were greeted with an announcement released by Coyotes Co-Owner, President and CEO Anthony LeBlanc, “Today is an exciting day for the Arizona Coyotes and our great fans. The addition of Andrew Barroway to our ownership group further solidifies the Coyotes long-term future in the Valley. Our entire ownership group is excited about this opportunity to work with Andrew in taking this franchise to the next level. It’s a great day for hockey in Arizona!” Here is the link: http://heatwaved.com/2014/12/31/andrew-barroway-approved-buy-arizona-coyotes/ .

We were told that Andrew Barroway’s purchase made him majority owner of the team holding 51%. The deal was praised as a means of creating financial stability for the team and some of the money would be used to raise payroll. Barroway said, “he and the nine minority owners were committed to infusing $30 million back into the team, with up to $9 million going directly to upgrading the on-ice product through trades and free agency.” As majority owner, Barroway would be the team governor, current governor George Gosbee would be alternate governor, and Anthony LeBlanc would remain as chief executive officer.

Two days later, on January 2, 2015 Craig Morgan of Fox Sports News interviewed Barroway. Here is the link: http://www.foxsports.com/arizona/story/q-a-with-coyotes-majority-owner-andrew-barroway-010215 . Morgan asked Barroway how active he would be as the new owner. Barroway indicated that he planned to be an active owner and would take part in all major decisions regarding the team. Morgan also asked if there would be any major changes and Barroway responded that he didn’t expect any.

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Where’s Waldo?

That was 4 months ago. So where’s Waldo? Er, Andrew Barroway? Sources inside Glendale City Hall indicate that Barroway, as the  majority owner of the team, has not signed the lease management contract. At the very least, that should have occurred after the Board of Governors approved the sale to Barroway on December 31, 2014. Does Barroway’s absence from the team scene and Gila River Arena plus a lease management contract without Barroway’s signature signal trouble with the deal? At the last game of the season the Coyotes distributed their annual book replete with statistics, photos and bios of everyone (except God) including the owners minus any mention or photo of Andrew Barroway. It makes you scratch your head and ask what’s going on.

thDYDNS84PThere’s another Where’s Waldo moment…the failure of the Coyotes to submit a certified financial team audit to the City of Glendale as stipulated in the lease management agreement. It was due September 30, 2014…7 months ago. In anticipation of receiving the audit the city hired Tony Tavares in December of 2014 to perform the city’s audit.

Peter Corbett of the Arizona Republic in an April 17, 2015 article offered some very interesting comments from principals involved. Here is the link: http://www.azcentral.com/story/news/local/glendale/2015/04/17/glendale-arizona-coyotes-first-season-audit-drags/25922095/ . He reported that:

  • “Coyotes officials said the reports were late because it was the organization’s first year of operations under the new deal and more complications surfaced when a new majority owner acquired the team at the end of last year.”
  • “The financial-reporting delay has created tensions with Glendale officials who are frustrated that the team has not closed the books on its first season even as the second season wrapped up April 11 on the ice at Gila River Arena.”
  • “Ian Hugh, Glendale vice mayor, said the Coyotes must be held accountable for the money the team is taking from taxpayers. ‘I expect both sides to live up to our agreement,’ he said. ‘Our auditor is still trying to get information from the Coyotes’.”
  • “Jeff Shumway, Coyotes CEO from 2006-09, said that during his tenure the team typically completed its audits by November. The audit reports were public documents that were available to anyone who made a records request to Glendale, he said.”
  • “The current Coyotes arena-management agreement includes language that requires the city to protect the team’s proprietary information.”

What’s so “proprietary” about an audited financial statement of profit and loss submitted to the City of Glendale that shouldn’t be a public record? After all, Glendale’s taxpayers are paying $15 million dollars a year. You would think we would be entitled.

The team’s financial audit wasn’t “proprietary” when Steve Ellman and/or Jerry Moyes owned the team. Did LeBlanc fudge in his public statements about the team’s losses? Who knows? Apparently we, the public, the taxpayers of Glendale and the fans supporting the team with ticket sales, will never know the truth. Former President Ronald Reagan said, “Trust but verify.” LeBlanc and company want all of us to trust but at the same time they don’t seem to want us to verify.

Questions remain unanswered…Where is Waldo? Where is Andrew Barroway and where is the certified team financial audit? There are answers but we are not getting them.

Post Script: Today is the NHL Draft Lottery. Coyotes placed third in lottery line up. Anthony LeBlanc tweeting a good face on the situation…but Where’s Waldo?

© Joyce Clark, 2015

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.