Arizona Coyotes lease agreement faces city council vote
The Arizona Coyotes saga just will not go away. No matter how much NHL commissioner Gary Bettman talks about how the Coyotes are in OK shape. Even though the Coyotes are going to unveil a new uniforms at the NHL Draft.
We give you … this.
Via the Associated Press:
The City of Glendale has called for a special meeting on Wednesday to determine whether to end an arena lease agreement with the Arizona Coyotes, further clouding the team’s future in the desert.
The meeting agenda calls for the city council to consider whether to cancel the professional services and arena lease agreement between Glendale and IceArizona, which co-owns the Coyotes with Andrew Barroway.
Some council members have said the Coyotes breached the contract by using money from the city as part of the lease agreement to pay down debt incurred when IceArizona bought the team in 2013.
The Coyotes then hit back with a statement:
“This is a blatant attempt to renege on a valid contract that was negotiated fairly and in good faith and in compliance with all laws and procedures. In the event the City Council initiates any action to revoke, repeal or otherwise rescind the agreement, the Coyotes will immediately take all actions available to them under the law against the City of Glendale.”
And there was this by Bettman at Game 1 of the Stanley Cup Final:
“There have been lots of stories written. Based on our ongoing dialogue, they have a lease that’s in full force of effect. Their obligations are being met currently. The club is not going anywhere,” he said on the Coyotes.
Remember, the Coyotes have announced large fiscal year monetary losses this past year.
Why is this an issue now? Because the Glendale City Council believes the Coyotes weren’t true to their lease with the city, using the $15 million it gets from the city to not solely pay for arena expenses.
Said vice mayor Ian Hugh in a mid-May article by TSN’s Rick Westhead:
“The taxpayer got the short end of the stick,” Hugh said in an interview. “If they call this an investment, you’d think there would be a possible return. I’m hard pressed to see the benefits to the city of Glendale.”
And I’m hard pressed to see the benefit of an arena without an anchor tenant in Glendale. But this is government in Arizona and the arena location is a major issue for the Coyotes. You can’t unbuild the arena if you’re Glendale, so it’s hard to see the plausible end game of this for the city council.
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Josh Cooper is an editor for Puck Daddy on Yahoo Sports. Have a tip? Email him at [email protected] or follow him on Twitter! Follow @joshuacooper
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