There has been a lot of chatter lately among hockey fans that keeping the team for 5 years is better than losing the team now. For rabid hockey fans such a thought should be anathema. Why?
A little review of history first. In future blogs at “Joyce Clark Unfiltered” a more complete history will be offered. In 2001 the City entered into a series of agreements with Coyotes Center Development
LLC (Mr. Steve Ellman). The City’s clear intent was to build an arena to host the Phoenix Coyotes Hockey team which had been purchased by Mr. Ellman. There was no management fee in this agreement. In 2005 Mr. Ellman sold the team to Mr. Jerry Moyes. There was still no management fee as Mr. Moyes bought the team under the existing agreements with the City of Glendale.
In Spring-Summer 2009 Mr. Moyes wanted the agreements renegotiated with the City to include a management fee of approximately $12 million a year or he would d
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cy. The City declined and Mr. Moyes declared bankruptcy. He tried to convince the City to support the sale of the team to Mr. Jim Balsillie of RIM with relocation of the team to Canada and to accept nominal annual payments from him. The City refused and consequently in May of 2010 the NHL bought the team out of bankruptcy. For the first time the City would be required to pay a management fee and in the case of the NHL, that figure was $25M a year.
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cy. The City declined and Mr. Moyes declared bankruptcy. He tried to convince the City to support the sale of the team to Mr. Jim Balsillie of RIM with relocation of the team to Canada and to accept nominal annual payments from him. The City refused and consequently in May of 2010 the NHL bought the team out of bankruptcy. For the first time the City would be required to pay a management fee and in the case of the NHL, that figure was $25M a year.In April and June of 2010 the City entered into Memoranda of Understandings with the
Reinsdorf Group and Anthony LeBlanc of Ice Edge. Neither of these potential deals could
Reinsdorf Group and Anthony LeBlanc of Ice Edge. Neither of these potential deals could
be negotiated to all parties’ satisfaction. Each of these parties was seeking an arena management fee in the $17 million range and each wanted an “opt out” clause of 5 years.
In February to June 2011, the City was ready to finalize a deal with Mr. Matthew Hulsizer of Coyotes Newco LLC. This deal also contained an “opt out” clause of 5 years. This new deal would have required the City to purchase parking rights from Coyotes Newco at a cost of approximately $100 M. It failed only in part due to the Goldwater Institute’s assertion that the City would be in violation of the state gift clause.
In the fall of 2011 through January 31, 2013, the City entered into an MOU and serious negotiations with Mr. Greg Jamison of Hockey Partners LLC. It was a deal that was good for Glendale, the NHL and the team. It kept the team in Glendale for 20 years, the annual management fee was $12M, there was an option to buy the arena and it contained penalty and incentive provisions. It failed because Mr. Jamison could not meet the City deadline for completion.I will offer more about this situation in a future blog at “Joyce Clark Unfiltered.” Lately there has been talk of “mystery buyers” with “deep pockets” from Gallacher to LeBlanc.
Ever since the arena was built I have talked to team owners of various sports. Universally the consensus has been that it takes a minimum of 10 years to build a solid fan base. Their general opinion has been that if anyone offered less than the 10 years then that entity is not serious about staying.Coyotes fans should not be willing to settle for a deal that only keeps the team in Arizona for 5 years knowing that it is not a good deal for the team, the NHL or the City of Glendale. How can a fan emotionally invest in a team knowing that it is destined to leave? Fans should be supportive of a deal that keeps the Coyotes here long-term. After all, in the last 18 months the emotional, physical and financial fan investment in this team has been greater than that of any fan in the NHL. It’s time for surety through permanence for everyone.
I can’t wait to watch this story evolve!
Hi Larry,
Trust me, I have much more to say on this topic as well as other issues in Glendale.
Thanks for taking the time to find my blog and reading it,
Joyce
Joyce,
Gary Bettman is also really good friends with “David Stern” and was formally with the NBA. Everyone knows how “popular’ David is to NBA fans in Phoenix. It would be not be a surprise to anyone if “Stern/Bettman” were intentionally asking an absurd asking “price” for the team with the full intent to move them to Seattle. The “twenty years” was probably the “kill” part of Mr. Jamison’s deal. (Not in line with Stern/Bettmans plans) This is what happens when you have two “lawyers” involved in sports. Sadly they will get away with anything and the people in the “know” will stay silent with the threat of litigation and other “undesirable” consequences. The NHL is done with us here. Too much money to be made on other “suckers’ so to speak.
Regards,
Joe
Hi Joe,
Thank you for taking the time to find and read my newly born blog. I hate to sound like a dolt but I don’t know who “David Stern” is and certainly have no thought on any relationship he may or may not have with Gary Bettman.
The Jamison deal died for reasons not publicly known at this time. I am sure all will become clear at a future date.
Again, thanks for finding me,
Joyce
Hi Joyce,
I enjoyed the read and look forward to more.
John
Thanks John.
Really hoping you are going to expand on the backdoor deal and any involvement the former or current mayors had in Jamson’s deal going south. You would think someone is getting paid off each time. Jamson was the best opportunity for the Yotes to succeed. Also, LeBlanc – what is his role. He is always out front in the press. He is also tied in with Greg Tindall. He is a former political guy from Canada. The city continues to look awful. It might be best for them to move and watch your city dissolve because of mismanagement. I hope not, but someone needs to realize the importance of some many nights filled at the arena.
Hi Steve,
Thanks for finding my blog. There is much that I could say but will not – at least right now. The Coyotes situation must play itself out first. One comment right now. I cannot believe that anyone was paid off for anything. I could be proven wrong in the future but right now, that is unthinkable to me.
Joyce
“Joyce mostly unfiltered! 😉
Just “mostly?” 🙂
Well, Im afraid I disagree with the premise that a 5-7yr deal isnt worth inking, and indeed, would have approached negotiations with any potential owner based upon that understanding, agreeing to a fair-market value Arena Management Fee ($5-7M per annum with performance bonuses) and an out clause (12mnth notification required after 48mnths). Im not here to perform an autopsy & pass judgment on the City of Glendale’s past actions in attempting to retain the franchise, short of saying those promised checks were absolutely a bridge too far for a city of its’ size, already weathering a number of storms on a variety of fronts.
I do believe Ellmans “vision” of a sports & entertainment complex as the anchor to future development & growth was absolutely sound, it was his failings in execution compounded by the 04-05 NHL Lockout less than a year after Glendale Arena opened losing all momentum, followed by the economic collapse & Mr. Moyes’ difficulties, a losing squad under Gretzky that precipitated the BK & hostile relocation attempt. Forced into buying the franchise themselves when their mystery buyers disappeared, one really has to ask the NHL “what have you truly done to facilitate a local sale and why did you not at least make an effort to maximize gate revenues over the past 3.5yrs in working to fill the building with non-hockey related events”?. You know, like actually earned that $50M from the City?
The entire onus of responsibility was shifted onto Glendales shoulders, having already built a magnificent palace in the Sun that is absolutely NHL hockey specific, and according Cashbox and other industry media, artists & event promoters who have used it one of the finest facilities in North America. Location is not a problem as many like to argue, the problem has always been a series of owners & ownership wannabe’s who have all been enabled by the NHL in demanding tax payer funded subsidies to prop up their purchase & the ongoing costs in running a private business. NHL hockey is more than viable in Glendale, yet I fear the damage done, most of it self inflicted by intransigent ownership, prospective buyers and maddeningly the league itself may well have killed the Golden Goose.
There are positive signs that the economy in the region (housing starts, commercial occupancy’s up etc) & Westgates’ turning the corner, Tanger Outlets opening, possibly more big box destination retailers moving in to the area, the pending contract with Luke AFB and so on. One need only look at the dramatic turnarounds in Dallas, Nashville & Sunrise (Florida Panthers) to realize & appreciate that all of the pieces are in place, massive market, brilliant facility etc to simply execute, succeed, as the fact remains no ones even tried, put their imaginations & backs into it. Im convinced that under enthusiastic, energetic and creative ownership this thing can be resurrected, made to crawl, walk, run, cross the line and never look back, and done so within 48-24mnths. If after that time, for whatever reasons absolutely no hope, no chance, an impossibility that given the effort that day would even come but if it did or does, then sure, go ahead & serve notice to Glendale, give them 12mnths to try recruit new ownership and if they cant, time to move on.
Its up to the NHL to facilitate a local sale, be it through creative financing & terms if indeed they are completely inflexible on price. Cap the Consent Form new owners are required to sign guaranteeing losses, do whatever it takes to get a deal done. How badly do they want it? Its not up to the City of Glendale, Lord knows theyve gone right through the wall on this one. This is up to and on the NHL which is where it belongs. They own it, they call the shots.
Hi Steve,
Thanks for taking the time to find and read my new blog. I agree with much of what you stated. There was a vision for western Glendale and that is Westgate. The lynch pin is Jobing.com Arena. I also agree that is is time for the NHL to settle this once and for all. I have my suspicions about the NHL’s involvement to date. But that discussion is for a later time. The only disagreement I have is that the team, the fans, the vendors, the businesses in Westgate and the City all need an assurance of permanency. That will not occur with a 5-7 year deal, only to have turmoil again. 5-7 years seems like a long time but in reality it is not when dealing with a team or a City.
Enjoyed your comments. Keep them coming.
Joyce
Thanks for the reply Joyce, and you may know me as long time Coyotes supporter from Canada (of which there are plenty) as Killion from hfBoards… if not, no worries…. In the sales game theres an old trick called the “Puppy Dog Sale”. Your Labrador has a litter, no takers? Easy peasy. Just ask friends & neighbors to look after one of them for the weekend, “off to Lake Havasu, houseboats sinking, emergency”. Guaranteed the Foster Parents have fallen in love with the wee creature by Monday morning, Mission Accomplished…. all the franchise needs, the building itself in maximizing profits through concerts, consumer & trade shows etc, a revenue stream for the City of Glendale incoming rather than outgoing is someone (a group) who rather than seeing obstacles that obstructs the goal simply roll’s up their collective sleeves and gets to work.
Excuses are for losers. Impossible not a word that should be in their dictionaries. Now if the NHL is willing & able, seriously wants to facilitate a local sale & support said efforts through creative financing, once installed as owners, that commitment to “babysit” will indeed pay dividends. People, the public, they’ll respond, and yes, even knowing that “hey, this is it. Two way street. You want my custom & business, show us that your willing to work hard, compete, do something with the building with which we’ve entrusted you”. Build confidence, reassure one and all that the covenants made with the city, the taxpayers, the sports fans of Arizona are in safe hands. The very thought of having to move will quickly evaporate as successes mount. This can be done. The team may well indeed be a bit of a lost leader for a couple of seasons, but the untapped revenue streams awaiting are significant, never even been drilled. Sitting on a Goldmine.
Steve,
Really enjoying your comments. Down to earth, sensible. Unfortunately, there aren’t a lot of “critters” out there with those attributes.
Thanks Joyce and no, Im afraid there are not. Much larger and decidedly feral packs frothing at the mouth baying for relocation, extinction. Drowning out any and all voices of reason, empathy, understanding, conciliation. I must say Im rather disappointed in the leagues performance to date, very disappointed indeed. Badly mishandled & mismanaged this file.
We may all be disappointed in the League but keep in mind, their public agenda of keeping this media market may not be their only objective.
So, whats next here? When does the National Hockey League let us know what they intend to do? Its’s really pretty simple; Price Break or Terms. Or are we looking at New Yorker’s looking for an easy way out, yet again, over 100 years after the fact, as in emancipation? Some answers would be nice you’d think.
Hi Steve,
You ask questions that are better directed to the NHL. And, yes, some answers would be nice.
Joyce,
As with all things Coyote I enjoyed your comments. Your tete-a tete with Steve Scott is enjoyable but he needs to slow down and put in some punctuation. His mind is moving faster than either he can type or I can decipher. Please don’t take this as criticism, I’m very interested, just trying to hang with you.
One thought that doesn’t make sense to me in your blog. If the league is somehow sinister in their efforts to keep the team in Glendale with a new owner as opposed to moving it, why not just dump it to the frothing Quebecois and be done with it? My supposition is that this will take place as soon as the season is over. In other words, why waste time with continued negotiations with Le Blanc, Hulsizer et al when there are entities and cities begging to take it?
Finally, where is your blog? I find this on FFH but I’d rather check it at your URL. Thanks
Hello Rod,
Thanks for your persistence in finding my blog. It is: https://www.joyceclarkunfiltered.com. I do not know for a fact that “the league is somehow sinister in their efforts to keep the team in Glendale with a new owner.” Their action or should I say, inaction, makes one question the League’s intentions and motives. Every entity in this ongoing scenario has their own agenda. Some we know. Some we do not know. The four Councilmembers that voted for the Jamison agreement realize that it is in Glendale’s long-term best interest to keep the team here. Now we have new Councilmembers who will decide if there is value to the City in keeping the team.
Joyce
Rod,
Sorry about that (punctuation, syntax, grammar, speed demon). Hope you didnt crash into a comma, fishtail it off the back end of an apostrophe?…. anyhoo, according to Conspiracy Theorists, tall tales youve likely heard, Greg Jamison and now again with Matthew Hulsizer & the boys from Ice Edge Holdings, all a front, subversives’, Marionettes, Gary Bettman & Bill Daly pulling their strings all the way from New York City. Merchants of false hope. The Evil NHL only wishing to give the appearance that their trying to facilitate a sale. See, the bottom’ll just drop out altogether at the gate, the ticket wickets stilled if the league comes out with a statement that the teams absolutely 100% moving. Absolute rubbish.
Im quite certain the NHL would be absolutely elated, ecstatic if indeed any of the aforementioned or anyone else for that matter, combined, had the vision & the money to resuscitate this particular patient. Hundreds of millions have been spent by the City, the league and various insiders & friends of. Where theres a will theres a way, and obviously the NHL itself needs to be made whole in receiving full payment back in return for their investments to date, and any solution simply must be one that so too is fair & equitable for the City of Glendale. So, rather than buying into the fables’ that the Coyotes’ are goner’s, I think it more prudent to at least here out & wait out any developments, ongoing negotiations between the City, the NHL & Hulsizers’ group, Greg Jamison who I believe is a man of honor & integrity, and who may yet somehow someway be able to pull it together.
Steve