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Joyce Clark Unfiltered

For "the rest of the story"

Apr 15

6

“Here to stay”…but in Glendale?

Posted by Joyce Clark on April 6, 2015
Posted in Arizona Coyotes • City Council Actions • City issue and actions • City of Glendale • Gila River Arena • Glendale elected officials • Glendale finances  | Tagged With: , , , , , , , | 2 Comments

It has been 17 years and 95 days since the city’s pledge to build the West Branch Library.

For 4 years, from the time Jerry Moyes declared the team bankrupt in 2009 until the end of 2012, as a councilmember I was part of the high drama surrounding the Arizona Coyotes and the arena, a city owned facility. Suitors to buy the team came and went with regularity. The city paid the NHL $25 million a year to manage the arena while everyone desperately hunted for a new owner. In 2013 a new city council was seated and promptly approved the current management agreement of $15 million dollars paid annually to IceArizona, the new owners of the team. If truth be told that $15 million goes directly to Fortress Lending and the NHL as interest payments on the IceArizona’s purchase debt owed by LeBlanc, Gosbee, and et.al. If you remember the cash raised for the team purchase was approximately $45 million. The rest of the purchase price of $170 million was strictly debt. Today Andrew Barroway is the majority owner (51%) of the team.

A recent article on March 30, 2015, by Mike Sunnucks of the Phoenix Business Journal entitled Could the Phoenix Suns, city build a new arena at Phoenix Convention Center site? It is intriguing to say the least. Sunnucks reports on speculation about where the Phoenix Suns will be playing its games in the future, “ ‘US Airways Center is owned by the city of Phoenix and the Suns lease doesn’t expire until 2029’, according to city spokeswoman Deb Ostreicher. The Suns could look to the city for renovations of the downtown arena or could look for a new home.” Sunnucks goes on to say, “One scenario being talked about — at least in real estate and downtown Phoenix circles — is a new arena being built where the current South Building of the Phoenix Convention Center is on Jefferson and Third streets. That is the oldest convention center building and is a block away from the Suns’ current arena.”

Granted all of this is extremely speculative but there is the possibility of the Phoenix owned US Airways Center becoming vacant if Phoenix and the Suns decide to build a new arena at the site of the south building of the convention center. Take it a step further and it is not outside the realm of possibility that Phoenix would attempt to lure the Arizona Coyotes to a newly renovated and vacant US Airways Center with better sight lines for hockey patrons.

Think about it. Since purchasing the team two years ago IceArizona has consistently lost money due to many factors. One of those factors has always been fan complaints about trekking out to Glendale for the games. Many in the East Valley as well as from other locations such as Tucson simply choose not to make the trip. A more centrally located arena in downtown Phoenix has a certain appeal for many.

One wonders if it appeals to Barroway. Today, 2015, the Glendale arena is 12 years old, having opened in December of 2003. In another 3 years, by 2018, the arena will be 15 years old and the Coyotes will have the available option of moving due to the opt out clause any time thereafter. One of Barroway’s imperatives is to keep the team viable over the next 3 years until some major decisions are made.

In 8 years, by 2023, the arena will be 20 years old and in need of major renovation and upgrades. In the meantime, if Barroway and the City of Phoenix worked out a deal regarding US Airways it could solve one persistent fan complaint by relocating to a more convenient and centralized location. It would certainly fulfill the owners’ mantra of “here to stay”…just not in Glendale.

© 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.

Jan 15

13

Coyotes sold again…period

Posted by Joyce Clark on January 13, 2015
Posted in Arizona Coyotes • City of Glendale • Gila River Arena  | Tagged With: , , , , | 22 Comments

Make no mistake. The team has a new owner…Andrew Barroway. Below is the press release on the Arizona Coyotes website with the announcement:

NHL Approves Agreement for Andrew Barroway to Become Majority Owner of the Coyotes

Wednesday, 12.31.2014 / 10:16 PM

Arizona Coyotes

FOR IMMEDIATE RELEASE: Wednesday, December 31, 2014

GLENDALE, ARIZONA — “The National Hockey League (NHL) and the Arizona Coyotes announced today that an agreement for IceArizona to sell 51 percent of the Arizona Coyotes franchise to Andrew Barroway has been finalized by the NHL’s Board of Governors. Barroway will serve as the Coyotes Chairman and Governor immediately.

‘This is truly a dream come true for me and my family,’ said Barroway. ‘I am extraordinarily grateful for the opportunity of a lifetime and look forward to working and solidifying a strong partnership with the Club’s current ownership group.

‘As a group we are committed to serving our fans with a new level of excellence and our collective goal is to put a competitive team on the ice every season and, one day, win the Stanley Cup.’

‘Today is an exciting day for the Arizona Coyotes and our great fans.’ said Coyotes Co-Owner, President and CEO Anthony LeBlanc. ‘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!’

Andrew Barroway is the Managing Partner of Merion Investment Management LP, an event driven hedge fund that currently manages more than $1 billion. Merion was founded in January 2009. Barroway graduated from the University of Pennsylvania Law School in 1991.”

Andrew Barroway is the new owner of the team. A simple analogy is this. You can no longer afford to make the mortgage payment on your house. You get your uncle to buy 51% of the value of your home. Then you decide you want to repaint and recarpet your house but your uncle says, “No.” Who prevails? Your uncle, of course. He is the majority owner.

It’s the same with the team. Rumors abound that the Gosbee/LeBlanc group have been missing their cash calls. Missing a cash call means that the ownership group (prior to Barroway) refused to use personal funds to cover losses. This probably made the NHL (Commissioner Bettman and the other team owners) very, very nervous. No wonder Bettman worked so hard to find another investor for the team.

One has only to look at this photo to see how thrilled George Gosbee and Anthony LeBlanc are to relinquish control of the team. While it is an old photo it reflects what each must have felt. Each looks as if their dog died.

image1

Photo credit: Matt Kartozian, USA Today Sports via Five for Howling by Brendan Porter

 

The minority owners have no choice but to put a ‘good face’ on the situation. LeBlanc’s mantra was Barroway’s purchase “further solidifies the Coyotes long-term future in the Valley.” Barroway offered “our collective goal is to put a competitive team on the ice every season and, one day, win the Stanley Cup.” Barroway’s function over the next few years will be to shore up the team financially and to cover those pesky cash calls.

On Friday, January 2, 2015 there was a press conference at the Gila River Arena to introduce Barroway to the Arizona fan base. (By the way with the name change to Gila River Arena, why does the very top of the arena, seen in aerial views, still say Jobing.com?) The presser was interesting on many levels. Anthony LeBlanc made several rather telling comments. In terms of a sale of the majority interest to Barroway, “we (the ownership group) weren’t looking for this.” They might not have been looking for it but it appears that Bettman and company most certainly were. He also confirmed that the sale consummated on the last day of 2014 “offers tax advantages for 2014.” The best face LeBlanc could offer was that the sale provides “financial flexibility.” Don Mahoney, the team’s General Manager, confirmed the importance of the sale to Barroway by saying, “we (the team) are solvent” and the sale provides “(financial) stability for long term success.”

It is no secret that Barroway has been trying to acquire a hockey team for years. Witness his attempts with the Philadelphia 76ers, the New Jersey Devils and the New York Islanders. In his case, the 4th time is a charm or as Barroway put it, “keep trying and don’t quit.” With regard to his relationship with the City of Glendale Barroway praised the “strong partnership” with the city. It seems the strong partnership is the $15 million a year the city pays the team. Le Blanc and Barroway reiterated that they are “committed to be here.”When asked about the “out clause” in the current Glendale/IceArizona deal, Barroway casually confirmed “the out clause remains in place.” As long as that option remains so will the speculation about a move after 5 years of losses. If Barroway is truly committed to keeping the team in the Valley working with Glendale to remove that stipulation would scotch the notion once and for all but don’t hold your breath. Barroway emphasized that he will be “very involved in all major decisions” and that “the buck stops with me.” LeBlanc painfully agreed by saying Barroway “wears the crown” as the majority owner of the team.

Just as every Coyotes fan, I desperately want Barroway and the team to succeed for that insures the team in Glendale for a very long time. An integral part of that scenario is constantly building a strong and ever growing fan base. That is difficult to do in today’s climate. Everyone, especially a fan base, loves a winner…a loser, not so much. The team’s performance is in a state of flux as older, experienced players are replaced with young, unproven new faces as part of a rebuilding cycle. The only star player the team will probably retain over the long haul is Shane Doan and he can’t do it alone. The financial bleeding will diminish when the team’s performance proves to be a consistent game winner.

What does the future hold for the Arizona Coyotes? Only Andrew Barroway knows and he’s not telling. Remember there is an option in the Glendale/IceArizona deal that the team can move after demonstrating 5 years of loss. Barroway, first and foremost, is a smart businessman. While he expects losses he also expects those losses to diminish over time as he works to build a more competitive and winning team. Only Andrew Barroway will decide if the team’s future includes a move to a more profitable locale with the financial resources to build his dream team that wins the Stanley Cup. We all hope that the dream of a Stanley Cup includes Glendale, Arizona. We all hope that is Barroway’s dream as well.

© Joyce Clark, 2014

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.

Dec 14

2

A crack in the ice

Posted by Joyce Clark on December 2, 2014
Posted in Arizona Coyotes • City of Glendale • Gila River Arena  | Tagged With: , , , | 5 Comments

Several days ago a blog follower suggested I go to Jo Jo Fraser’s FB page. Jo Jo is a good guy. He has been and continues to be a staunch supporter of the Coyotes. His recent FB posting demonstrates the, up until now, silent sentiment of many Coyotes supporters. What is so surprising is his openness in questioning the direction of the team’s ownership and plans for the team. It is the first crack in the ice of support for a team performing poorly. His post evoked replies both pro and con. Here is what he posted and a sampling of replies:

Jo Jo Fraser

November 29, 2014

“Driving home from the game tonight I couldn’t stop asking myself if I had fun tonight. I love NHL hockey as much as anything in this world but going to the arena is not fun right now. After riding the roller coaster since the great playoff run all I can see is the bleeding off of true NHL players that have not been replaced ( starting with Raffi and going through Verby ) . I have to ask myself who is to blame for this. Up till now I was unwilling to question the new ownership group because I was just so glad to have my team here but that started to change over the summer with no movement to get some quality talent to fill the holes that were vacated. I was told the idea was to put a winning product on the ice RIGHT away to start to build the fan base back. That has turned out to be all talk and no walk.  We are now heading towards our third year out off the playoffs and the team seems to be in complete disarray with no clear direction.  We are not a big team and we are not a fast team so what are we? What is the direction we are heading? GMDM says he thought we were going to be a playoff team. I am not sure what he is seeing because I see a team that is just a touch better than the oilers. I am finding myself expecting this team to lose. This is not a recipe to grow the game. If a die hard fan like myself is having a hard time getting up to go to a game how in the heck are we suppose to get new fans to come seem this team. We have the best captain in sports in the twilight of his career and he deserves better from ownership and management for his loyalty when the team was at its lowest. Oh and can someone tell me what all the great improvement to the arena over the summer were. All I see is they tore out the tile in the team shop and said it is newly remodeled. I hope something changes soon.”We are now heading towards our third year out off the playoffs and the team seems to be in complete disarray with no clear direction. We are not a big team and we are not a fast team so what are we? What is the direction we are heading? GMDM says he thought we were going to be a playoff team. I am not sure what he is seeing because I see a team that is just a touch better than the oilers. I am finding myself expecting this team to lose. This is not a recipe to grow the game. If a die hard fan like myself is having a hard time getting up to go to a game how in the heck are we suppose to get new fans to pay money to come seem this team. We have the best captain in sports in the twilight of his career and he deserves better from ownership and management for his loyalty when the team was at its lowest. Oh and can some one tell me what all the great improvement to the arena over the summer were. All I see is they tore out the tile in the team shop and said it is newly remodeled. I hope something changes soon.

Mike Doyle Well said Jo Jo. It is really sad. I’m starting to think we were sold a bill of goods by ownership to fail so they can move in 5 years.

Jon Pletcher Do you see the ownership walking around anymore? You saw that all the time last year. And they were always vocal as well. I see nor hear that no more. And honestly that really makes me nervous.

Paul Gheduzzi I’m getting really concerned, but not giving up, Jo Jo. Right now, I have a feeling that the ownership issue is getting sorted out with Andrew Barroway and afterwards we could see changes that can help improve the team on the ice. Same with their visibility. The Coyotes unfortunately are playing poorly in a number of areas while the young guys go through the growing pains. The veterans the team has are just not enough to compete in a tougher Western Conference. All I know is, the team cannot stay status quo. It can’t. And I’m not going to target either Don Maloney or Dave Tippett because this is on the players, not them. Agreed it is unfair to Shane Doan he isn’t getting to play for a winning team right now before retirement comes.

Mike Doyle They promised Doan a winner and that is why he signed a home town discount contract. Many teams offered him lots more money but being the great person Doan is he believed them just like we did.

Jeanne Ruairí I understand you’re frustrated, but the things this ownership group inherited to fix cannot be done overnight. The improvements to the arena was food, repairs, cleaning, extermination, etc that was ignored for 4yrs. As for GMDM, he’s done what he’s can with what he was given. We all want a winning team, but unfortunately it has to be rebuilt. I do still see the owners walk around, granted not as much as I think they’re probably try to figure out how to fix this funk. We’re not set up to fail, but any business bought out of 4yrs of bankruptcy doesn’t get fixed overnight.

Mike Doyle Losing 50 million to make twice that in the following 2 or 3 years is not out of the question. Tom you and I are normally on the same page but this time we differ in a huge way. I am always up beat about our team but I’m having second thoughts now. Many conversations you and I have had about internal situations are not a good sign either. I am very skeptical right now.

Paul Gheduzzi Understood, Tom. Again, I’m just concerned. But I already knew that the turnaround wouldn’t happen overnight. Just very tough because we saw some momentum after the 2012 playoff run and the securing of new ownership, keeping fans and growing the fan base is sensitive at this very stage to how the team plays. I have faith in everything working out, but it’s a concern if we don’t start seeing changes for the better in the near future.

Mike Doyle Everyone knew from the get go to get the fan base back we had to put a good product on the ice. That was a no brainer about sports teams in the valley.

Jo Jo Fraser Tom Kennedy makes some good points but I think maybe the priorities are screwed up. Nothing changes overnight but a direction for the team could be set. GMDM said we are a playoff team. That doesn’t add up. If they came out and said we are two or three years away I could get behind that. I don’t buy for a second that there are plans to move the team in four years I just want to see a direction for the team or hope for the future. I don’t like what I have seen so far. I am wrong a lot and I’m sure if I was privilege to information the big wigs have I would feel better but I don’t. I’m just a very disappointed and frustrated die hard fan. Going to a game and expecting the Coyotes to loose is not a fun place to be but it is a current reality.

There are many fans who are concerned. The unknown factor is Andrew Barroway. The general assumption is the NHL Board of Governors will approve the sale this month making him the majority owner. Little is publicly known about his plans for the team. We are sure to learn more when he is officially approved. A major take-away is Anthony LeBlanc, George Gosbee and all of the other current owners will be in the minority and can no longer determine the team’s eventual fate. It is to be expected that their visibility and cheerleading would wane given the circumstances. The bloom is off the rose as they realize they can no longer call the shots.

Jo Jo Fraser’s comments are illustrative of the growing fan base frustration and discontent. It is an issue the current owners must address quickly or their failure to grow the fan base will cause  further cracks in Coyote ice.

© Joyce Clark, 2014

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.

Oct 14

13

Gila River Arena management agreement

Posted by Joyce Clark on October 13, 2014
Posted in Arizona Coyotes • City Council Actions • City issue and actions • City of Glendale • Gila River Arena • Glendale finances  | Tagged With: , , , , , | 3 Comments

Ever since the news of Andrew Barroway’s purchase of a 51% interest in the Coyotes (expected to be ratified by the NHL’s Board of Governors) there have been questions about the original management agreement between IceArizona and the City of Glendale.

One of the questions that surfaced was would there be an opportunity to renegotiate the agreement. In reading the contract there does not appear such an opportunity.  Technically Barroway is becoming the majority owner of the team and for now the arena manager remains the same.

The arena manager is responsible for the operation of the arena and for leasing space to the team. The issue is addressed in Section 5. Demise of Arena and Use Rights. In 5.1, Demise of the Arena it states, “The City hereby demises and lets to the Arena Manager, and the Arena Manager hereby takes and leases from the City, effective on the Closing Date, for the Term and upon the provisions (i) The Arena Facility…” In Section 5.2, Grant Use of Rights, it says, “In addition to the rights granted by the City to the Arena Manager in the other provisions of this Agreement, the City hereby grants to the Arena Manager, and approves the right of the Arena Manager to grant to the Team Owner, during the Term, the exclusive right and obligation to use and occupy the Hockey Event Spaces…”

In Section 6.2., Sublease of Exclusive Team Spaces, it says, “The Team Manager hereby subleases the Exclusive Team Spaces to the Team Owner…”  The team is a subtenant of the arena. We know that Barroway is securing a 51% interest in the team but we do not know if he is also acquiring a majority interest in the arena management company.

Even if Barroway became a majority owner of the arena management company in Section 4.2.3, Arena Sub-Manager, “The Arena Manager may, from time to time, delegate all or a portion of its duties and responsibilities to an Arena Sub-Manager…” There is no provision that I can find whereby a change in team ownership requires a renegotiation of the lease since: (1) the lease is with the arena management company and (2) the arena management company can sub-lease to an arena sub-manager without city approval as long as all duties and responsibilities continue to be met satisfactorily.

The other question that has been raised is the city’s ability to audit. A little background is in order. Under the team ownership of Ellman and Moyes the city received financial reports but had to accept them without any corroboration. This eventually became problematical for the city. City Council wanted a mechanism whereby it could verify what the arena manager was reporting in terms of revenues and costs associated with the arena’s management and operation. Hence Section 8.16, Financial Reports and Section 8.17, Audits were incorporated into the agreement. Financial reports must be submitted to the city monthly, quarterly and annually. To ensure the veracity of the reports submitted, in Section 8.17.1, “The City shall have the right to conduct an independent audit of the management and operation of the Arena (or any part thereof) and the Account Records (or any part thereof) and the Team Owner Records (or any part thereof) by City Staff or by an independent certified public accounting firm selected by the City.” This section clearly grants the city the right to audit not just arena manager financial records but financial records of the team as well.

Keep in mind that this agreement was devised by attorneys and as a result, their interpretations of the terms can vary. That’s how they earn their fees…by arguing exactly what a term or provision of a contract actually means. They could argue how many gnats are on the head of a pin.  

As a result you can be sure that every sentence within the agreement can be disputed and argued by attorneys. On the face of it, it appears the city has no legal right to renegotiate the management agreement with IceArizona. IceArizona would have to agree to do so voluntarily and that’s not going to happen. However, the city does have a legal right to audit manager and team financial records and to thereby confirm the revenues and expenses that are reported to it.

© Joyce Clark, 2014

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.

Oct 14

8

It’s a Coyotes kind of day

Posted by Joyce Clark on October 8, 2014
Posted in Arizona Coyotes • City Council Actions • City issue and actions • City of Glendale • Gila River Arena • Glendale finances  | Tagged With: , , , , , , , | 7 Comments

Today, October 8, 2014 is a grey, overcast day in the Phoenix metro area…a rarity to be sure. Anywhere else it would portend a day of steady rain but Phoenix is a desert and because it looks like rain, it doesn’t necessarily mean it will happen. It’s a good day to let thoughts rumble around.

A blog reader recently sent me two news stories of interest. One is from the October 5, 2014 Seattle Times entitled Key Arena turns a bigger profit than it ever did with the Sonics by Ashley Scoby. Here is the link: http://seattletimes.com/html/localnews/2024708723_keyarena05xml.html. The other is a Deadspin article entitled The Coyotes were damned close to moving to Seattle by Barry Petchesky dated October 8, 2014. Here is the link: http://deadspin.com/the-coyotes-were-damned-close-to-moving-to-seattle-1643791488 . Each article compliments the other.

In the Deadspin story three sources confirm that the Coyotes were a hair’s breadth from moving to Seattle. Ray Bartoszek and Anthony Lanza had formed a buyers’ group with plans to move the Coyotes to Seattle’s Key Arena the day following the Glendale City Council vote on the IceArizona arena management agreement if it had failed to gain approval. The new information in the story is confirmation that the NHL had blessed the scheme. Everyone knew how imminent the move could be….the NHL knew; the presumed buyers had moving trucks on standby; Glendale senior management knew; the Glendale City Council knew; and IceArizona knew. The only ones in the dark were Glendale residents.

Which leads to the second news story about Seattle’s Key Arena. Everyone presumed in 2009 without the Sonics as an anchor tenant the arena would die a pitiful death. How wrong. An average annual loss to Seattle with the Sonics was $1.5 million. In 2013, without the Sonics, the arena generated $1.2 million in profit. The loss of the team didn’t hurt for it opened up more desirable dates for performing artists to utilize the arena. Artists such as Kanye West, Rihanna, Maroon 5 and Bruno Mars performed at the Key in 2013.

I had always supported keeping a professional sports team at the Gila River Hockey Arena because it was my belief that the arena and Westgate could not survive without one. Seattle’s Key Arena disproves that belief. If the Coyotes arena management agreement had failed on that fateful July, 2013 day Glendale would have moved on, just as Seattle did. Glendale would have joined with an AEG-type partner and could have enjoyed the same kind of success that we see today at Seattle’s Key Arena.

P.S. Here’s a link to yet another Seattle Times news story about an almost move to Seattle: http://seattletimes.com/html/hockey/2024716050_seattlenhl07xml.html#.VDWTTHFMEBI.twitter

© Joyce Clark, 2014

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.

Oct 14

2

Coyotes’ saga continues

Posted by Joyce Clark on October 2, 2014
Posted in Arizona Coyotes • City issue and actions • City of Glendale • Gila River Arena • Glendale finances  | Tagged With: , , , , | 12 Comments

On October 2, 2014 Larry Brooks, a reporter for the New York Post, reported that a 51% interest in the Coyotes is in the process of being acquired by Andrew Barroway. Barroway is managing partner and founder of Merion Investment Management LP based in Radnor, PA. He is a failed suitor in the purchase of the Devils and Islanders.  At this point the story is speculation as neither the NHL nor the Coyotes’ owners have confirmed the deal. Here is the link: http://nypost.com/2014/10/02/spurned-islanders-buyer-to-purchase-coyotes-instead/. As an exercise, let’s speculate some more.

Why is Barroway acquiring a majority interest in the team? He wants to own a hockey team. That is evident in his two failed attempts. But he wants more than that. He wants to be in control and to make the ultimate and final decisions about the team’s fate at a future date. The team cannot and will not leave for 5 years. We can enjoy hockey in the Valley through the 2018-2019 season. After that you will need to consult your crystal ball.  Although I would expect that when the fans finally realize the team’s days may be numbered attendance will drop like a stone.

According to the agreement the team cannot leave for 5 hockey seasons and must demonstrate $50 million in operating losses. Here is the exact language in the management agreement: Section 3. Term. 3.3. Early Termination by Arena Manager/Team Owner. “Notwithstanding the other terms and provisions of this Agreement, Team Owner and Arena Manager jointly shall have the right to terminate this agreement without penalty or cost by delivery of written notice to the City at any time within 180 days following the end of the fifth (5th) hockey season year after the execution date if (a) neither terminating Party is in material default of any term or condition of this Agreement, and (b)Team Owner has incurred a cumulative Operating Loss of $50,000,000 or more, calculated as the sum of Team Owner’s operating income/loss for each the Fiscal Year periods then ended, provided that if such notice is given during any NHL hockey season, the termination shall not be effective until the end of the applicable hockey season, including all Home Games associated with the season. In this regard, Team Owner shall deliver to the City, not later than ninety (90) days following the end of each Fiscal Year, a statement (certified to the City by the Team Owner’s chief financial officer or the Team Owner’s certified public accountants, at the option of Team Owner) of the Team Owner’s claimed operating income or loss for such Fiscal Year, which statement shall be subject to audit by the City and the result f such audit shall thereafter be conclusive upon team Owner with respect to the determination of Operating Losses.” This exact same provision applies to the city as well.

The New York Post story cites the team loss in its first year of operation at $24 million. Educated rumors are that it’s on the low side and could be more. As long as we’re speculating, let’s peg their losses at $20 million a year. At the end of 5 years the team’s losses will be north of $100 million and will meet the terms of the agreement.  Barroway’s investment in the team now will cover those expected losses and he will be in the cat bird’s seat to decide the team’s future move.

Let’s wait to see if a majority interest is indeed sold to Barroway. That will deliver a strong message to everyone and you can then decide how much of an emotional investment you wish to make in the team. And just when we thought the Coyotes saga was closed…so it continues.

© Joyce Clark, 2014

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.

Sep 14

17

Welcome to the Gila River Arena

Posted by Joyce Clark on September 17, 2014
Posted in Arizona Coyotes • Casino • City Council Actions • City issue and actions • City of Glendale • Gila River Arena • Glendale finances • Jobing.com arena  | Tagged With: , , , , , , | 1 Comment

On September 9, 2014 at its regular council meeting the Glendale City Council approved a new name for its arena. It will now be known as the Gila River Arena. The following day there was a press conference to announce the name change. Anthony LeBlanc, one of the Coyotes’ owners was there; Gregory Mendoza, Governor of the Tribe was there; Jan Brewer, our state Governor was there; and Jerry Weiers, Mayor of Glendale was there.  Guess who wasn’t there? Our infamous “gang of four,” Councilmembers Alvarez, Sherwood, Hugh and Chavira. It’s perfectly understandable. After all, their allegiance is to the Tohono O’odham Nation. Alvarez was also the lone negative vote on the name change to Gila River. Instead she stubbornly questioned staff on the necessity of bringing the name change before council for ratification.  It appeared as if she questioned the action long enough and hard enough she could make the need for a council vote disappear. Didn’t happen. Apparently Norma’s love for minorities does not extend to the Gila River Community.

However, it’s not so strange a move. Gila River has been a long time partner of the Arizona Coyotes hosting the Gila River Club within the arena proper. If I were the Gila River I would be secretly smug and taking enormous satisfaction in the fact that their name will be prominently displayed across the street from their duplicitous sister tribe, the Tohono O’odham’s new casino.

Here’s a reminder that today, Wednesday, September 17, 2014 at 2:30 PM Eastern time, the Senate Committee on Indian Affairs will have a legislative hearing on Senate bill 2670, Keep the Promise Act of 2014, introduced by Senators McCain and Flake. It can be viewed online live.  Panel One of the hearing will have Governor Mendoza of the Gila River Indian Community, Ned Norris Jr., Chairman of the Tohono O’odham Nation, Glendale Mayor Jerry Weiers and Glendale Councilmember Gary Sherwood. It should prove interesting as 2 champions of the casino face off against 2 opponents of the casino. Hopefully, the bill will move out of committee paving the way for a full senate vote.

Considering the fact that Glendale did not recoup its $14,002,055 (not a full fiscal year, prorated for 11 months) paid for the management fee and capital improvement fund and that you can add another $12 million for the arena construction debt, you would think Alvarez would welcome the new Gila River name and the 20% of the fee paid by Gila River to IceArizona. It will offset the approximately $20 million in arena costs, not by much, but every penny is welcome. A lot of Glendale’s residents are anxiously awaiting the audit of IceArizona’s budget and hope it is made public and put on the city’s website. If not, don’t be surprised if there are a lot of FOIA requests for a copy of the audit.

There was no council workshop on Tuesday, September 16, 2014 because there was not a quorum. How many of Glendale’s council is attending the Senate Committee on Indian Affairs legislative hearing today? I guess we’ll find out.

© Joyce Clark, 2014

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.

Jul 14

28

A peek inside the NHL’s Board of Governors

Posted by Joyce Clark on July 28, 2014
Posted in Arizona Coyotes • Jobing.com arena  | Tagged With: , , , , , , , , | 1 Comment

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Anthony LeBlanc

I’ve always wondered about the NHL’s Board of Governors. Who are they? Where do they meet? What do they do? And how do they do it? Their mantle is one of secrecy. Google and you may, or may not, be able to come up with a list of all of the members. I did just that and pieced together a list of current Governors and Alternates. I offer my list at the end of this article. If I have erred, I hope readers will advise me so that I can correct the list.

Recently, I reached out to Rich Nairn, VP of Communications, with my questions. He arranged an opportunity to visit with Anthony LeBlanc, one of the Arizona Coyotes Alternates to the Board of Governors. I want to thank Mr. LeBlanc for graciously giving of his time amid a very busy schedule and patiently answering my questions. It was a good discussion and I learned a great deal.

There are 30 NHL teams. All have different ownership situations and the Arizona Coyotes are no different. In the Coyotes case they have 9 owners.  Who is the team’s Governor or Alternates on the Board of Governors? How were they chosen? There was never a formal vote by the team’s owners. George Gosbee is the largest equity partner and was charged with securing the rest of the equity partners and it was generally understood and accepted by all that he would be Governor. There are three alternates. They are Anthony LeBlanc, Craig Stewart, and Don Maloney. All have essential roles with the team. Again, there was no formal vote by the Board of Directors. These men assumed their positions because of the responsibilities they bear.

The Board of Governors meets three times a year. They typically meet in New York City in September; in Pebble Beach, California (or some other warm clime) in December; and in New York City again in June. If every team’s full compliment were to attend the same meeting there would be 123 Governors and Alternates representing the 30 teams. Some teams have as few as a Governor and 1 alternate but many have a Governor and 4 or 5 Alternates.

Since August of 2013 when the team was acquired by IceArizona, Gosbee as Coyotes Governor and two of the three Alternates, LeBlanc and Stuart, have attended the September 2013 meeting, the December 2013 meeting, and the June 2014 meeting. Due to the demands of his schedule Don Maloney attended one meeting. I asked LeBlanc if there were ever any emergency meetings of the Board of Governors. He said they do occur from time to time and used the example of the Board’s ratification of the purchase of the Coyotes by IceArizona. Since he has been attending board meetings no such special or emergency meeting has been necessary.

I also asked if any members of the Coyotes salaried management team attended in order to staff the Governor and Alternates. The answer was “no.” I asked if family members were usually taken on these trips. The answer again was “no.” Do the players’ union representatives or referees’ union representatives ever attend? Mr. LeBlanc indicated that he had not seen that, but that did not mean it didn’t happen. No one participates telephonically. If a Governor cannot attend, the team’s Alternates are charged with representing the team’s interests.

So how do these meetings work? They usually last one day in New York City and two days in a warmer location like Pebble Beach. These meetings are for the purpose of determining policy for the league. The meetings are formal with a written agenda. The agenda is prepared and distributed several weeks in advance giving each Governor and the team’s Board of Directors time to prepare. In the case of the Coyotes their Board of Director meetings are quarterly and usually occur just before the Board of Governors meeting. That gives the owners time to discuss the items on the agenda and to come to consensus on the position they want their Governor to take. As a side note, LeBlanc shared that he has informal, telephonic Coyotes Board of Directors meetings every Friday morning with as many owners participating as are available.

The Board of Governors meetings have become formal due to Bettman’s leadership. The NHL administrative staff or others make presentations and/or reports on agenda items. There can, and often is, discussion by the owners after each presentation. Robert’s Rules of Order are followed with recognition of each speaker. Each agenda item is decided by a roll call vote. Minutes are taken and distributed to each of the Governors. The meeting agendas are created by Gary Bettman, NHL Commissioner, and his staff. Bettman was the very first NHL Commissioner and has been at the helm since 1993, a period of 21 years. Bettman does not have a vote but as NHL Commissioner he often controls the flow of the meeting and requires that all Governors and Alternates defer to him with regard to press releases about any and all important decisions that flow from a Governors’ meeting. All of the Board of Governors meetings’ content remains confidential unless a public policy statement issued.

I asked Anthony if there are any opportunities for the Governors and Alternates to socialize with one another at these meetings. In the days before the Gary Bettman era the meetings had the flavor of a good ole boys meeting. Today social opportunities arise at luncheons or dinners. Breaking bread together gives the Governors and Alternates time to talk shop, share stories about their teams and renew acquaintances. It also can provide an opportunity for a Governor to gather support (or opposition) on an agenda item.

The Governors meetings are similar to what is experienced at any Executive Session of a corporate Board of Directors meeting or city council meeting. All contain the same elements; formal agendas, presentations, discussion and vote on policy items with confidentiality required. Socializations occur outside the meeting room.

Again, I want to express my thanks to Anthony LeBlanc for allowing me to take a peek into the world of the NHL’s Board of Governors meetings. He provided a rare glimpse into a world we hear very little about.

The National Hockey League Board of Governors

Chairman of the Board: Jeremy M. Jacobs

  • Anaheim Ducks
  • Governor:                         Henry Samueli
  • Alternate Governor:        Susan Samueli
  • Alternate Governor:        Michael Schulman
  • Alternate Governor:        Tim Ryan
  • Alternate Governor:        Bob Murray
  • Boston Bruins
  • Governor:                        Jeremy M. Jacobs
  • Alternate Governor:       Charles Jacobs
  • Alternate Governor:       Jeremy M. Jacobs Jr.
  • Alternate Governor:       Louis Jacobs
  • Alternate Governor:       Jarry J. Sinden
  • Alternate Governor:       Cam Neely
  • Alternate Governor:       Peter Chiarelli
  •  
  • Buffalo Sabres
  • Governor:                        Terry Pegula
  • Alternate Governor:        TedBlack
  • Alternate Governor:        Darcy Regier
  • Alternate Governor:        Ken Sawyer
  • Alternate Governor:        Cliff Benson
  •  
  • Calgary Flames
  • Governor:                         N. Murray Edwards
  • Alternate Governor:        Ken King
  • Alternate Governor:        Alvin Libin
  •  
  • Carolina Hurricanes
  • Governor:                         Peter Karmanos, Jr.
  • Alternate Governor:        Jim Rutherford
  • Alternate Governor:        Michael Amendola
  • Alternate Governor:        Jason Karmanos
  • Alternate Governor:        Ron Francis
  •  
  • Chicago Blackhawks
  • Governor:                         W. Rockwell Wirtz.
  • Alternate Governor:        Robert J. Pulford
  • Alternate Governor:        John A. Ziegler, Jr.
  • Alternate Governor:        John McDonough
  •  
  • Colorado Avalanche
  • Governor:                         Josh Kronenke.
  • Alternate Governor:        Mark Waggoner
  • Alternate Governor:        Greg Sherman
  • Alternate Governor:        Joe Sakic
  •  
  • Columbus Blue Jackets
  • Governor:                         John P. McConnell
  • Alternate Governor:        Mark Priest
  • Alternate Governor:        John Davidson
  •  
  • Dallas Stars
  • Governor:                         Tom Gaglandi
  • Alternate Governor:        Jim Lites
  • Alternate Governor:        Jim Nill
  • Alternate Governor:        Mike Modeno
  •  
  • Detroit Red Wings
  • Governor:                        Michael Ilitch
  • Alternate Governor:       Jim Devellano
  • Alternate Governor:       Ken Holland.
  • Alternate Governor:       Cristopher Ilitch
  • Alternate Governor:       Rob Carr
  • Alternate Governor:       Tom Wilson
  •  
  • Edmonton Oilers
  • Governor:                        Daryl Katz
  • Alternate Governor:       Patrick LaForge
  • Alternate Governor:       Kevin Lowe
  •  
  • Florida Panthers
  • Governor:                        Cliff Viner
  • Alternate Governor:       Bill Torrey
  • Alternate Governor:       Michael Yormark
  •  
  • Los Angeles Kings
  • Governor:                        Philip F. Anschutz
  • Alternate Governor:       Dean Lombardi
  • Alternate Governor:       Dan Beckerman
  •  
  • Minnesota Wild
  • Governor:                         Craig Leopold
  • Alternate Governor:        Philip Falcone
  • Alternate Governor:        Jac Sperling
  • Alternate Governor:        Chuck Fletcher
  •  
  • Montreal Canadiens
  • Governor:                        Geoff Molson
  • Alternate Governor:       Kevin Gilmore
  • Alternate Governor:       Fred Steer
  • Alternate Governor:       Michael Andlauer
  • Alternate Governor:       Andrew T. Molson
  • Alternate Governor:       Marc Bergevin
  •  
  • Nashville Predators
  • Governor:                        Tom Cigarran
  • Alternate Governor:       Herbert Fritch
  • Alternate Governor:       David Pole
  • Alternate Governor:       Jeff Cogen
  • Alternate Governor:       Sean Henry
  • Alternate Governor:       Joel Dobberpuhl
  •  
  • New Jersey Devils
  • Governor:                         Joshua Harris
  • Alternate Governor:        David Biltzer
  • Alternate Governor:        Lou Lamoriello
  • Alternate Governor:        Scott O’Neil
  •  
  • New York Islanders
  • Governor:                        Charles Wang
  • Alternate Governor:       Roy Reichbach
  • Alternate Governor:       Arthur J. McCarthy
  • Alternate Governor:       Michael J. Picker
  • Alternate Governor:       Garth Snow
  •   
  • New York Rangers
  • Governor:                         James L. Dolan
  • Alternate Governor:        Glen Sather
  • Alternate Governor:        Hank Ratner
  • Alternate Governor:        Dave Howard
  •  
  • Ottawa Senators
  • Governor:                        Eugene Melnyk
  • Alternate Governor:       Sheldon Plener
  • Alternate Governor:       Cyril Leeder
  • Alternate Governor:       Erin Crowe
  • Alternate Governor:       Bryan Murray
  •  
  • Philadelphia Flyers
  • Governor:                         Edward M. Snider
  • Alternate Governor:        Philip I. Weinberg
  • Alternate Governor:        Peter Luukko
  • Alternate Governor:        Paul Holmgren
  •  
  • Arizona Coyotes
  • Governor:                         George Gosbee
  • Alternate Governor:        Don Maloney
  • Alternate Governor:        Anthony LeBlanc
  • Alternate Governor:        Craig Stewart
  •  
  • Pittsburgh Penguins
  • Governor:                        David Morehouse
  • Alternate Governor:       Ronald Burkle
  • Alternate Governor:       Anthony Liberati
  • Alternate Governor:       Ray Shero
  • Alternate Governor:       Travis Williams
  • Alternate Governor:       Mario Lemieux
  •  
  • St. Louis Blues
  • Governor:                         Thomas Stillman
  • Alternate Governor:        Doug Armstrong
  •  
  • San Jose Sharks
  • Governor:                         Hasso Plattner
  • Alternate Governor:        Doug Wilson
  • Alternate Governor:        John Tortora
  •   
  • Tampa Bay Lightning
  • Governor:                         Jeff Virik
  • Alternate Governor:        Steve Yzerman
  • Alternate Governor:        Tod Leiweke
  •   
  • Toronto Maple Leafs
  • Governor:                         Larry Yanenbaum
  • Alternate Governor:        Dale Lastman
  • Alternate Governor:        Dave Norris
  • Alternate Governor:        Tim Leiweke
  •  
  • Vancouver Canucks
  • Governor:                         Francesco Aquilini
  • Alternate Governor:        Paolo Aquilini
  • Alternate Governor:        Robert Aquilini
  • Alternate Governor:        Michael Gillis
  • Alternate Governor:        Victor de Boris
  •   
  • Washington Capitals
  • Governor:                         Ted Leonsis
  • Alternate Governor:        Richard M. Patrick
  • Alternate Governor:        George McPhee
  •   
  • Winnipeg Jets
  • Governor:                         Mark Chipman
  • Alternate Governor:        Kevin Cheveldayoff
  • Alternate Governor:        Patrick Phillips

© Joyce Clark, 2014 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.

Jul 13

3

Congratulations !!!

Posted by Joyce Clark on July 3, 2013
Posted in City of Glendale • Jobing.com arena  | Tagged With: , , , | 5 Comments

celebrate 1Congratulations to all who worked so hard to keep the Arizona Coyotes in Glendale. Your tremendous effort has been rewarded. Now the hard work begins…not for the fans but for the principals — RSE and the city — in the deal. I wish them much luck now and in the future. I respect the current council’s decision and can appreciate what it took for them and out of them to arrive at their decision-having been there several times previously.

This 4 year odyssey has taken its toll in friendships and relationships as nerves and tempers frayed. That is my only regret. Just as with many of you, it is time for a brief hiatus — time to recharge and renew. For the next week I will do exactly that and no blogs will appear. When I come back…roaring…there will still be many other Glendale issues — and the pond to write about.

See you back here in a week!

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