Globe and Mail reports that NHL may be loaning money to Phoenix Coyotes

It will not let me view the list of demands, says cookies are not enabled but they are, could you help me out and do some cutting and pasting or summarizing?
Thanks

 

As you wish:

Terms of proposed deal


Glendale would pay the team:

Management fee: $15 million a year.

Team would pay city (projected):

Rent: $500,000.

Hockey ticket surcharge: $1.5million.

Non-hockey ticket surcharge: $1.7million.

Parking revenue: $2.2million.

Arena naming rights: $670,000.

Naming rights for new stage within the arena: $150,000.

Secondary ticket surcharge on all events: $1.2million.*

*Only if certain minimums aren’t met.

 

People can't believe it when I tell them most professional sports franchises pay zero zip zilch nada in actual rent -- they pay some nominal/incidental sum or tiny percentage more or less as a ceremonial gesture, but they almost always get kickbacks going the other way which dwarf the "rent payments."

So in most cases, not only do the sports franchises get their arenas paid for by the taxpayers, then they get paid to play there.

 

Thank you

OK so I just added this up in my head, city pays team $15,000,000 Team pays city roughly $8,000,000?

 

Unless the secondary ticket surcharge is knocked off, which you can bet it will be, which will bring the annual balance sheet to something like: Glendale pays Coyotes $15 million, Coyotes pay Glendale $6.8 million.

Click click click.

 

So the city is forking over money to subsidize a team that annually loses money just so the nearby restaurants and clubs can stay in business??? Gotta love capitalism and cronyism working together.

 

Not far from the truth. To me, it's like flailing around in the water with a millstone around your neck because they'll shoot you if you stop moving.

The whole thing is one giant circle of failure. This thread started on Christmas Eve 2008 and we're still here because Bettman is too stubborn to admit the Southern strategy was even a partial failure or sell to Balsillie, so he keeps riding a losing bet. The City of Glendale can't afford to subsidize the team and can't afford to scuttle the arena development, so it's picking between a terminally ill man and a dead man.

With all this lease stuff, have we even factored in the possibility of another Goldwater-esque legal hangup?

 

I think other southern markets have fared better than Phoenix. Probably a combination of issues.

Not sure if the NHL has a better option available right now. The Winnipeg people got tired of being played and turned their attention to buying the Atlanta franchise. I suspect if there was someone out there right now with a wad of money and an NHL-caliber arena ready and waiting, Bettman and his cronies would listen.

 

They absolutely have a better option in Markham, Ont., but I'm convinced they're sitting on it to make big bucks in an expansion scheme within the next decade. Quebec would probably constitute a better option as well but probably royally screws either with geography or the new realignment plan. Seattle constitutes an option, but I don't know if it's much better in the short term given Seattle's relative coolness on hockey and the apparent limitations of the KeyArena floor plan.

 

Detroit wouldn't move back west again so if the Coyotes moved to Quebec, it would probably force Columbus to the west.

 

Markham is not an option right now and won't be for a few years, if ever. There's no arena there, and no guarantee that one will be built.

As far as Canada is concerned, the only places a new franchise could go in the fall are Quebec City and Hamilton.

 

Oh, my bad. I thought they'd already broken ground. (Was operating under the assumption that Hamilton would be a temporary home in this scenario. But I think 32 teams with as many as nine in Canada is where we're headed, because now that they've grabbed all the cash they can through the labor process, I'm sure a cash grab via expansion fee is the next step.