Disclaimer: The comments in the blog are my personal opinion and may or may not reflect an adopted position of the city of Glendale and its city council.
Today, March 7, 2017 NHL Commissioner Gary Bettman penned a letter of utter desperation to Arizona’s senate president and speaker of the house followed almost immediately by a statement by Andrew Barroway, Coyotes majority owner and chairman. Here is the link: http://www.abc15.com//sports/sports-blogs-local/nhl-commissioner-to-state-legislature-coyotes-must-have-a-new-arena?utm_source=SilverpopMailing .
Let’s think about Commissioner Bettman’s statement for a moment. In 2003 when the Coyotes played their first game in Glendale’s new arena, built specifically for them, Gary Bettman gushed about Glendale. He praised Glendale. He couldn’t heap enough praise on Glendale.
The original owner of the Coyotes, Steve Ellman, had no deal requiring the City to subsidize the team. Ellman, not only ran the team successfully, he filled the arena regularly and consistently with big ticket concerts. Then Ellman sold his interest to Jerry Moyes. Moyes appeared to have bled the team dry until like a sun-baked prune it had nothing more to offer to him…and so, in 2009 he went to Glendale and asked for an annual subsidy. Glendale said “no” and Moyes followed through on his threat to put the team in bankruptcy while trying to craft a side deal to sell the team to Canadian billionaire Jim Balsillie, who wanted to relocate the team to Hamilton, Ontario.
In 2009 in a desperate move to keep the team in Glendale, the NHL took over the team and charged Glendale $25 million a year to manage it. Bettman was Glendale’s partner, Glendale’s buddy. Again, he couldn’t say enough good things about Glendale and its willingness to work with him and to keep the team in Glendale…and Arizona.
Glendale invested $185 million in construction of the hockey arena with debt service over 30 years, the final commitment is about $325 million…cha ching.
Glendale paid the NHL $50 million over 2 years to manage the team and keep it in Glendale and Arizona…cha ching.
Glendale paid IceArizona $15 million a year to manage the arena, again to keep the team in Glendale and Arizona…cha ching.
And this is how Commissioner Bettman recognizes the city for its investment and loyalty. Pardon me…but what a crock.
Along comes Anthony LeBlanc and his merry band of Canadian investors. By the way, have the team owners ever paid back the $70 million they borrowed from the league to buy the team? LeBlanc, et.al., in a snit fit, have apparently chosen revenge against Glendale because the city council had the temerity to cancel the owner’s arena management contract and the lucrative subsidy it provided. Didn’t it bother you, Mr. Bettman, that the team couldn’t provide straightforward answers to the city regarding their finances? Didn’t it give you pause?
Glendale was golden, until now. You never wrung your hands about the Glendale arena when it was built in 2003 or when Moyes declared bankruptcy in 2009. You never wrung your hands up until now. Mr. Bettman, did the majority Canadian owners of the Coyotes threaten to leave Arizona and move to Canada? Is that the straw that caused you to send a last minute, begging letter to the Arizona legislature supporting the Coyotes’ attempt to extort money from the legislature to support construction of yet another sports venue on the backs of Arizona taxpayers? Is your desire to stay in Arizona at all costs founded on its lucrative media market and a move to Canada would eliminate that?
I’m sure the members of the Arizona legislature have wondered how the Coyotes ownership will come up with $170 million as their share of the funding that SB 1149 requires when the Coyotes admit to millions in sustained losses every year, over the last few years. Which city is willing to become the host city and pour another $55 million down what appears to be a rat hole? Certainly there is no support among Arizona’s taxpayers to shell out another $170 million in sales tax to support this scheme.
It simply flies in the face of logic to build another hockey arena in Arizona when there is already a wonderful facility built specifically for the Coyotes. The growth of the Metro Phoenix area is in the West Valley and believe me there are plenty of demographically affluent, potential fans here. Could the possibility of poor management, non-existent marketing and a lousy product on the ice be the reason for the free fall in attendance?
Shame on you, Mr. Bettman. Glendale has proven itself repeatedly to be a reliable and stalwart partner in your desire to keep the Coyotes in Arizona. Now you turn your back on the city. If that’s how you treat friends, I pity anyone on your enemies list.
© Joyce Clark, 2017
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I understand your ire. However its misplaced. Right or wrong, the COG had a deal with LeBlanc’s group. Their business plan for buying the team was based on that plan. Glendale as it turns out bit off its nose to spite their face.
You are correct about the growth and future of the West Valley. Thats why the $15M was necessary for them to survive until there was enough revenue for them to flourish. If there is a “culprit” here its Jerry Moyes. In the BK it was not hard to figure out the team could have made a profit if he wasnt “borrowing” from the hockey team to keep his trucking business alive.
As for whats owed on the arena. Thats 100% on the Glendale council that pulled the plug on the deal. They will have to bear responsibility for the white elephant you will soon be stuck with. Its to bad the vision you and others had when this was started didnt come to fruition. The plan was great, the execution wasnt.
In the end, no matter what happens the only loser will be Glendale. A self inflicted would.
James, I don’t agree with your premise but I respect your right to voice your opinion.
A couple things. We all forget there was one of the worst recessions in our history during the Yotes time here. That effected everyone. Ellman had already been late on holding up his end of the Westgate development pre recession, but the recession really hurt Westgate. Yes, Ellman had more concerts but the reality is the number of those events has dropped drastically everywhere. I believe in the Jamison deal, Manny spoke with Live Nation and was told there wasnt close to enough outside events to come close to making up for lost Coyote dates if they left. That was and still is 100% accurate. AEG sure isnt setting the world on fire with events at the arena.
You are correct. The franchise has been stuck with poor ownership. Present day included. We all know Moyes BK was complete BS as the NHL had taken over operation of the team and all the bills were being paid. He, with his bogus BK put a black eye on both the team and the city. Something that still haunts everyone involved today. We also know that the day he filed the bogus BK, Bettman had a deal with Jerry Reinsdorf to buy the team. So, we are here at this point because Moyes (I am trying to be nice here) tried a bogus end around.
You can answer if something I was told is accurate. When Moyes bought the team………..did Elman pay him $75M for his share of Westgate?
James, I honestly cannot confirm or deny the Ellman payment to Moyer. We were not privy to the details of their transaction. Rumors floated but we could not confirm or deny.
Jerry excuses are gone! How? How? Joyce will Jerry explain after the final 4 debacule that Glendale came out in the red again? Just like the last Super Bowl and the one before. When will you ask Jerry to explain why he spent $17 million in taxpayer funds to the Bidwell’s for a free tax payer paid parking garage? Outsmarted again! Its time for you to stop excusing yourself and this mayor and council that they are always “victims” to everyone. Victims to the NHL, MLB and NFL and now the NCAA. You are constantly asking to everyone to believe as “victims” of these big mean corporations that the poor tax payers should never pay a price for the concils own incompentence and worse. Ask yourself, how many parties does it take to make an agreement.
Sorry Joyce, I didn’t mean to come down you as a single person. Just these elected officals always never have to answer the tough questions. I apologize.
JD, Apology accepted. I was not on city council and did not vote for the Final Four. I may be wrong but I believe a consortium that included the Arizona Sports and Tourism Authority actually bid on hosting the Final Four at the UofPhx Stadium–which just happens to be located in Glendale. I was not on council when it allocated $22 million to avoid a lawsuit with Bidwill over parking. I was on council with regard to Camelback Ranch but the former city manager failed to disclose all of the ramifications of the project to council. I was on council up to and including the Jamison bid to buy the team. I was not there for Ice Arizona or what occurred subsequently.
I will take my share of responsibility for Camelback Ranch and initial construction of the hockey arena.
Nothing to take a share of responsibility for with Camelback Ranch or the Hockey Arena. At the time you approved them, the information at the time strongly suggested both were sound investments. Like I said, the plan was fine but the execution failed. Starting with the money that was to be used to cover the training fields going away. There was no way that could have been foreseen. The hockey arena with an ounce of decent ownership would have succeeded. Hind sight is always easy. IMO, history will show that the council that broke the deal with the Coyotes will be responsible for the white elephant you are about to be stuck with. We also know that the NET payment Glendale made was no where near $15M. I would bet that what you are paying AEG would be within a couple million of the net payment to the Coyotes. Not only will you have a white elephant but you will lose 600K people coming to the area and not providing tax revenue in the area Westgate bars and restaurants. Please discuss how you may think I am wrong?
Thank you Joyce. Sadly if you want to look at the future of Westgate its easy. Just look about 12 or so miles west. Its a former “hopping” development called Metro Centre. Glendale will find out what happens when an anchor tenant leaves. Westgate offers nothing that one can’t find in most areas in Phoenix metro. Chain resturants and the like. GRA is a nice arena, just a bad location. You need to be near your customers. Most are not in Glendale, or care to travel the distance. Wait and see when the Cardinals go 5 or more years between playoff appearances. Same result, even with the NFL. Location is an issue yes, businesses fail everyday because of a bad location or obsticles to a business. Think how many businesses failed during the light rail construction. Too hard to get to and too many “obsticles” in the way. My major objection is the constant blame from the concil and Jerry Weirs the the Coyotes are responsible for all or most of Glendale’s ills. Just like the Super Bowl and likley a red sea for the NCAA final four the city choose to bid on these events only later to complain about them. The GOC should have gotten out of the entertainment business long ago and tried to sell GRA. Now the assest is soo distressed that the city would be fortunate to get an offer any where near 100 million. Forget any decent naming rights, no tennant low payout for naming rights. Gary had to make a statement to confirm that Glendale isn’t viable not the Phoenix market as a whole. Rep Kern is just doing Jerry’s dirty work for him. You know he can’t get bruised if he is not in public.
JD
This is truly sad news. However, I’ve had enough of this team and this ownership group…and I say that as a big Coyotes fan. I don’t like the way the city went about tearing up the contract with the Coyotes. It soured relations with Coyotes ownership and has been the catalyst for driving the team out of Glendale. In the end, the city is saving about a million dollars a year under the new agreement. Hardly worth it IMO. Having said that, this team takes absolutely no responsibility for their current situation (poor attendance). The product on the ice is abysmal. Phoenix market fans do not and will not show up to watch a losing team. Location has nothing to do with the current attendance situation. The Diamondbacks have a “prime” location and their attendance figures are terrible. It’s the same situation with the Suns. Mr. LeBlanc has even stated publicly that location is not an issue, its all about putting a winning product on the ice. He even mentioned that the arena where he grew up was not downtown, and that nobody complained about the drive when the team was winning.
This ownership group has stated multiple times that Glendale is no longer an option for them. I hope after next season the city does not renew their lease. It breaks my heart to say this as I’m a huge fan (since October, 2008) and have had so many great times at Yotes games, but it’s time to cut our losses and say farewell to this team and this terrible ownership group.
Joyce, do you think it’s likely that the city will kick the Coyotes out after the current lease expires and is the city looking at options for the arena beyond the Coyotes?
Jason, the situation is so fluid right now that I do not think it is appropriate to respond to your question. Thanks for asking. Will respond when the time is right.
Jason, The situation is very fluid right now and I don’t think it is appropriate to answer your question. I will when the time is right.
City already cancelled the lease. This is desperation from the city council, not the NHL! They won’t loose money and neither will IA, just sell take a tidy profit and let Jerry explain the loss of AEG and naming rights etc. Metro Centre Redux. Kern is just doing Jerry’s and Hugh’s dirty work. I wonder if Jerry will implode the arena and give that land away also to the Bidwells for space for the tax payer funded parking structure. And what is the council’s position on loosing $$$ year after year at Camelback Ranch?
The Yotes have an option for 1 more year. You really think Glendale would be dumb enough to cancel another agreement? Sadly, I do. The Yotes have a back up plan if Glendale trys to break another deal.
What is the back up plan?
The best thing a person can do if they are opposed to this is to contact the legislator for your district. You can google Arizona Legislature District, type in your address to find your district and from there find your legislator.
Don’t be afraid, they need to know how you feel about this situation.
The rest of you have stated your opinions in great detail, but my comments will be brief.
The following is strictly my personal opinion:
Back when former Mayor Scruggs and the City Council were proposing the arena to bring the NHL Coyotes to the westside, they had visions of making Glendale the “Sports Capital of Arizona”.
Mayor Scruggs was “over the moon” with excitement at the thought of it!
I believed then, as I believe now, those were “Visions of Grandeur”.
That arena should never have been built, and The Coyotes should never have been brought to our city!
It was a losing proposition from Day 1. The Coyotes have never turned a profit for Glendale.
The Coyotes are losers and so are we, the residents and taxpayers of Glendale.
Hindsight is great. You may be right the arena should never have been built. However, the plan as designed was excellent. The problem is the city didnt vette the snake oil salesman that conned them, Steve Ellman.
With a halfway decent owner this entire mess would not be here. Westgate, the team and Glendale would all be doing well.
Everyone speaks about the Coyotes and the arena. Why no disgust that Westgate is only 30 finished as planned? If Elman didnt screw everyone, the city wouldnt need the revenue from the dates the Coyotes provide.
One other not talked about issue. There was $25M in a fund for a parking garage in Westgate. The city and Elman decided to split the money instead of building the garage that the COG now needs $33M to keep to the terms with the Cardinals.
Who was mayor? Ms Scruggs who today is ripping the Coyotes. She should sit back and keep her mouth shut. Her hands are in EVERY misdeed.