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The Financial Picture In Glendale

from Amanda J. Crawford and Brian Chappatta of Bloomberg,

Glendale, Arizona, which has borrowed more than $355 million for professional sports venues, has seen the yield penalty on its bonds jump after approving an additional $225 million outlay to keep the National Hockey League’s Phoenix Coyotes in town.

While Coyotes fans gathered in Glendale city council chambers cheered the deal that is poised to keep the team in the Phoenix suburb’s publicly financed arena, investors have been less enthusiastic. Interest rates on some Glendale debt set a two-year high and yield spreads swelled as much as 20 percent after the city council on July 2 cleared a lease paying the team’s prospective owners $15 million annually for 15 years to manage the facility.

The deal weakens the former farming community’s credit and detracts from its ability to serve its 232,000 residents, said Pat Liberatore, an analyst at Moody’s Investors Service. The city has already had its bond rating cut by both Moody’s and Standard & Poor’s since November, and fired workers and raised taxes to close a deficit last year.

continued

Filed in: NHL Teams, d, | KK Hockey | Permalink
 

Comments

Vladimir16's avatar

What. A. Joke.

Posted by Vladimir16 from Grand River Valley on 07/31/13 at 11:35 AM ET

SYF's avatar

What. A. Joke.

Posted by Vladimir16 from Grand River Valley on 07/31/13 at 11:35 AM ET

And they’re considering Las Vegas as a possible site for an NHL expansion team.

Holy fuch…

Posted by SYF from the team that re-signed KFQ and DFC by KFH on 07/31/13 at 12:20 PM ET

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I wonder how many see the parallels here.

Posted by HockeyinHD on 07/31/13 at 01:32 PM ET

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And, just to be clear, Glendale isn’t a city ridden with crime, illiteracy, and the crumbling of basic civic infrastructure.

And a municipality spending that much on a sports team is still profoundly dumb.  Ah well, helps out the new owners though.

Posted by HockeyinHD on 07/31/13 at 01:34 PM ET

J.J. from Kansas's avatar

I wonder how many recognize the differences here.

Posted by J.J. from Kansas on 07/31/13 at 02:20 PM ET

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I wonder how many recognize the differences here.

You clearly can’t, but I imagine your worldview is still rattling from the amazing revelation that billionaires will ask for and get huge public financing for arenas.

Posted by HockeyinHD on 07/31/13 at 04:42 PM ET

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“I wonder how many see the parallels here.”—I’m amazed at how well traveled and versed you are in Urbanism (in addition to Hockey and sports management). How do you have time to beat your dog too?

“... imagine your worldview is still rattling from the amazing revelation that billionaires will ask for and get huge public financing for arenas….”—As well as failing, un-owned sports franchises. If Glendale is as bad as YOU ASSume why did the nhl allow the team to be purchased in wHOLE by the investment group in seattle?

Posted by howeandhowe from Seattle on 07/31/13 at 05:12 PM ET

SnLO's avatar

Posted by HockeyinHD on 07/31/13 at 04:42 PM ET

eyeroll

Posted by SnLO from beyond the M-1 on 07/31/13 at 05:21 PM ET

J.J. from Kansas's avatar

You clearly can’t, but I imagine your worldview is still rattling from the amazing revelation that billionaires will ask for and get huge public financing for arenas.

Please get over me and actually discuss the topic. Your constant attacks and bullying are tiring to everybody who reads them.

Posted by J.J. from Kansas on 07/31/13 at 05:26 PM ET

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Can’t wait for actual games of hockey to be played.

With that said, can someone breakdown how the Gomez deal is better then what Detroit gave Dats?

Posted by maltby18 on 07/31/13 at 08:10 PM ET

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Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.

From breaking news to in-depth stories around the league, KK Hockey is updated with fresh stories all day long and will bring you the latest news as quickly as possible.

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