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What’s Going On In Glendale?

from David Shoalts of the Globe and Mail,

Once again, threats to the sale of the Phoenix Coyotes are mounting, which means the NHL is facing some unappetizing choices over the future of the franchise.

A petition to overturn a city sales-tax increase was delivered to suburban Glendale city officials Thursday. It could torpedo Greg Jamison’s proposed purchase of the Coyotes from the league.

Another petition to put the lease for Jobing.com Arena, one that is to pay prospective owner Greg Jamison $324-million (all currency U.S.) over 20 years, to a public vote is due either Monday or July 16. The date is the subject of some legal wrangling between Glendale and the two taxpayers who are gathering signatures.

But if the petition is filed and upheld, then the lease approved by city council last month will go into limbo until November when it will be the subject of a referendum along with the sales-tax increase in the municipal election.

continued

Filed in: NHL Teams, Phoenix Coyotes, | KK Hockey | Permalink
 

Comments

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Oh, but everyone knows that Shoalts and the G&M are cheerleaders for more teams in Canada so they’re total anti-Phoenix propagandists and you can’t trust a word they say!

(I’m just getting that comment out of the way because we all know that if I hadn’t, someone else would’ve said it.)

Posted by dzuunmod on 07/05/12 at 09:11 PM ET

NIVO's avatar

I feel bad for the players and the fans in Fauxnix. As a player i’d bolt asap. I have to think about my game and family(if i have one) without having this glaring crap hanging over myself and other players. Get out while you can players!  Yandle, we got a shiny spot right for you in Detroit!

Posted by NIVO from underpants gnome village on 07/05/12 at 09:12 PM ET

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I’m sure more taxes and a gigantic new bond issue will solve all the problems in Phoenix with regards to their hockey franchise.  Why, once there is the ‘stability’ of having a team there for the next 10 years I just bet fans will drive from all over and pay league average ticket prices to watch the ‘Yotes.

Watching that franchise is like watching an iceberg slowly approach a house that’s 10 feet away, one inch a month.

Posted by HockeyinHD on 07/05/12 at 09:20 PM ET

SYF's avatar

BAU in Glendale.

Posted by SYF from Zata's Epic Viking Beard on 07/05/12 at 09:52 PM ET

John's avatar

If the Coyotes’ future in Arizona depends on voters passing a referendum to increase the sales tax by 3% and take on a ton of bond debt in a city that is already running a pretty decent deficit and in this economy, then say goodbye to the desert.  I don’t know a whole lot about Glendale politics, but I know it is a largely white, upper-middle income suburban community, which generally means you can count on a heavy streak of fiscal conservativism, regardless of their party affiliation.  That is an uphill battle, big time.

ALso, any trades or free agent signings will hurt the Coyotes’ chances of winning the referendum at the polls too.  Bettman is going to have hire real political consultants and run a real campaign, identifying fans and supporters of the Coyotes and trying to turn them out to the polls.  How motivated do you think those supporters are going to be to show up and vote if their captain and their best defenseman depart from the team?  Not very.

Yandle is officially off the market.  And if I were Bettman I would offer Shane Doan a CHUNK of change and make him the poster-boy for the referendum.

Posted by John from Pittsburgh, PA (Wings fan for life!) on 07/05/12 at 09:54 PM ET

Vladimir16's avatar

Watching that franchise is like watching an iceberg slowly approach a house that’s 10 feet away, one inch a month.

Posted by HockeyinHD on 07/05/12 at 07:20 PM ET

 

This ^^^^^

Posted by Vladimir16 from Grand River Valley on 07/05/12 at 09:59 PM ET

mrfluffy's avatar

And if I were Bettman I would offer Shane Doan a CHUNK of change and make him the poster-boy for the referendum.

Yeah…like that would be legal…

If I were Holland I’d still go after Doan and Yandle hard.

Posted by mrfluffy from Long Beach on 07/05/12 at 10:00 PM ET

SYF's avatar

If I were Holland I’d still go after Doan and Yandle hard.

Posted by mrfluffy from Long Beach on 07/05/12 at 08:00 PM ET

This is a ruthless business the NHL is.  Among the teams that fleece the richer clubs for subsidies that include friggin’ NSH and NYI, no, I got no sympathy for what’s going on there.

Find another Western city that will support an NHL team without the grief from a supposed taxpayer watchdog group like Goldwater.

Posted by SYF from Zata's Epic Viking Beard on 07/05/12 at 10:42 PM ET

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I’m sure more taxes and a gigantic new bond issue will solve all the problems in Phoenix with regards to their hockey franchise.

The problem is, without them they will lose the team.  Which will actually cost the city and the tax payers even more money paying off the publicly held debt on a vacant arena.

This is a crappy situation, but unfortunately it looks like Glendale has to choose between loosing alot of money on trying to keep the team, or loose even more if they leave.  These petitions, and the goldwater institute makes you think the voters might actualy pick the bigger loses out of spite.

Posted by jwad on 07/05/12 at 10:42 PM ET

John's avatar

Yeah…like that would be legal…

Maybe you misunderstood me.  What I meant was that Phoenix will offer Doan a sizable contract and retain him as a player, not that they would funnel campaign money to him.  If he is retained as a player, given his popularity in the market, the NHL and the Coyotes would likely ask him and other players to participate in a PR campaign urging voters to support the franchise. 

Although, it is worth noting that there is nothing illegal about hiring a celebrity to act as a spokesperson for a campaign.  That happens all the time, especially with local and regional celebrities like retired news anchors and sports stars.

Posted by John from Pittsburgh, PA (Wings fan for life!) on 07/05/12 at 11:38 PM ET

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If I were Holland I’d still go after Doan and Yandle hard.

Gary Bettman is not going to trade Yandle to the Wings.  He is not.

The problem is, without them they will lose the team.  Which will actually cost the city and the tax payers even more money paying off the publicly held debt on a vacant arena.

I don’t think so.  The new bond issue and the existing debt on the stadium are pretty much identical.  All issuing a new bond does is send good money after bad, and then in 5 or 10 years Glendale gets to deal with this all over again after yet another owner comes to the shocking realization that the current economic realities make hockey in the desert a losing proposition.

Stuff like this really should be a cautionary tale to voters to make absolutely certain they don’t let their local representatives get in the business of the investment of public monies on large scales.  If they were any good at it they would have stayed out of politics and made real money.  Most city council types are failed something or others, not venture capitalist wunderkinds.

Posted by HockeyinHD on 07/05/12 at 11:51 PM ET

Vladimir16's avatar

These petitions, and the goldwater institute makes you think the voters might actualy pick the bigger loses out of spite.

         
              Posted by
              jwad
             
              on
              07/05/12 at 08:42 PM ET

Out of spite and/or just to be done with this mess.
So, everyone, what are the odds that if the new ownership goes through all will be good…. for good?

Posted by Vladimir16 from Grand River Valley on 07/06/12 at 12:16 AM ET

awould's avatar

Posted by Vladimir16 on 07/05/12 at 10:16 PM ET

87.4%

Posted by awould on 07/06/12 at 01:27 AM ET

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@SYF FYI the Islanders do NOT get subsidies because they play in a major market.

Posted by nyifan on 07/06/12 at 03:43 AM ET

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Phoenix can say goodbye to Dolan

Posted by FlyersFan on 07/06/12 at 12:01 PM ET

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It all started with a crooked owner.  Moyes sowed the seeds of all this.  I don’t know how they can rectify all the bad decisions.  The worst mis step was building the arena in Glendale. 

Unfortunately sports has morphed into a series of real estate scams involving tax funded arenas.  Look at the boon doggle in Miami.  Another tax funded white Elephant.  Why don’t these teams build their own facilities with the profits from the 10 dollar beers they sell.

Posted by 13 user names on 07/06/12 at 12:54 PM ET

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Don’t blame Goldwater.  Why should taxpayers support a Hockey Team?  Because you like hockey?  What if they wanted to raise YOUR taxes to build a ping pong stadium?  These arenas were fine for generations, now they knock em down every 10 years.

Posted by 13 user names on 07/06/12 at 12:58 PM ET

Kate from Pa.-made in Detroit's avatar

Why don’t these teams build their own facilities with the profits from the 10 dollar beers they sell.

Posted by 13 user names on 07/06/12 at 10:54 AM ET

Why don’t these teams build their own facilities? Period.

Lets Go Red Wings!!!!! In ’13

Posted by Kate from Pa.-made in Detroit on 07/06/12 at 01:12 PM ET

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Why should taxpayers support a Hockey Team?

The tax payers already are supporting this Hockey team.  That’s the problem.  Yes,  it was a bad deal for Glendale to have financed the arena.  But it happened, and it cant be undone. 

The best scenario given the situation they are in, is to spend more money, and keep the team.  If the team leaves, Glendale will still have to pay for the arena, and have no revenue generated by the team, and losses in revenue from other business around the stadium. 

Thats why tax payers should support it.  not because anyone likes hockey or not, but because it is the best they can get out of this horrible situation they are in.

Unless someone can go back in time, and keep the arena from being publicly financed, or some Canadian buyer is willing to pay off the arena debt as a condition of buying the team and moving it to Southern Ontario or Quebec or wherever, this is the best option for tax payers.

Posted by jwad on 07/06/12 at 05:51 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.

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