Is this going to be a short-term gain or a long-term pain?
The Glendale City Council will vote on proposed amendments to the Arizona Coyotes lease agreement at a meeting on Friday, July 24, 2015.
News release from COG on July 23, 2015
The Arizona Coyotes and the City of Glendale announced that the two parties have agreed on a resolution to their ongoing legal dispute. The City of Glendale will release details of the proposed amendments to the existing arena management agreement this morning on the city’s website, http://www.glendaleaz.com/. The Glendale City Council will vote on the amendments to the agreement on Friday, July 24 at Glendale City Hall. Details of that city council meeting are also posted on the city website.
From Glendale Acting City Manager, Dick Bowers
“This revised agreement represents a positive outcome for both the city and the Coyotes. It also allows us to move forward in a way that keeps an important economic driver in our community. That’s important for business and it’s important to our citizens.”
From Coyotes Co-Owner, President and CEO Anthony LeBlanc
“We have come up with a resolution that works for both sides and is best for the team, our fans, the city and most importantly the taxpayers. Neither side benefits from a long, drawn out legal battle. What’s important is putting this dispute behind us and focusing on growing the Coyotes business and in turn, further growing revenues for the entire Westgate Entertainment District. This decision will bring much-needed certainty to our fans and sponsors about our near-term future and an end to the uncertainty brought about through this legal action. We know that hockey works in the Valley and we are committed to Arizona for the long-term. We thank Coyotes fans and sponsors for their incredible support throughout this process. They have proven that they are among the most loyal and ardent in the NHL.”
Key points to the new agreement
1. Reduced management fee: The Gila River Arena management fee the COG pays to IceArizona, (the team’s owner) would be reduced from $15 million to $6.5 million annually.
2. Term: It is a 2-year deal ending on July 30, 2017. The original deal was for a span of 15 years. This new deal will eliminate the early termination clause which would have allowed the team to leave by 2018 if it sustained significant losses.
3. Former COG consultants removed: Former COG employees Craig Tindall (former city attorney) and Julie Frisoni (deputy city manager) who had done consulting work for the team, cannot be employed in any way by the Coyotes. The COG sited this as a conflict of interest in attempting to negate the original lease.
4. Rent: The annual base rent paid by the Coyotes to the city remains the same at $500,000.
5. City can change arena manager: In the new agreement the COG would be able to replace the arena manager after June 30, 2016.
6. Surcharges and parking money: The COG agrees not to collect a surcharge on tickets for hockey games and for non-hockey events and the IceArizona would keep all the revenue from parking fees, which the city receives in the existing deal.
These are some of the new amendments but until the vote nothing is official.