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Coyotes, it's really starting to look like a circus thoughts?
I've heard that today Glendale is having a workshop with the potential buyers. Supposedly the city wants to pay 6.5 million per year for their arena where the new buyers want 15 million.
What I don't get is why anybody would want to buy the coyotes when all that team does is loose money. Why would renaissance want that team there in Glendale if all they will do is loose money,
It seems a bit ridiculous especially if the NHL agrees to it and 5 years down the road renaissance goes belly up. Why not just move the franchise where they can make money Like Quebec city and or Seattle?
I've heard said that bettman wants the team there for tv contracts. being that the team owners are now paying for the coyotes and that bettman is being paid by the owners why is the team still in Arizona when they all have to pay for the loses? Are the tv contracts that lucrative?
In Quebec for example they have Quebecor that is ready to take the team and they have a sport channel ready and able to take the team. Would that nt be a better money making model?
Any thoughts?
I looked up Seattle, they are not ready to get a team. They have an old rundown ice rink that can get 11K people only. It's not even up to NHL standards and since Seattle is having an election in November they do not want to spend the money now. Seattle therefore is not ready for a NHL team.
Seems to me that Glendale and or Quebec are the only viable options right now.
6 Answers
- viphockey4Lv 78 years agoFavorite Answer
Moving the team to Quebec isn't an option. The NHL currently has a tv deal in place that REQUIRES the NHL to provide NBC Sports with 23 viable U.S. markets. Violation of the contract would bring about a breach of contract lawsuit and an ugly settlement costing the NHL probably 10's of millions in damages plus losing out on their most lucrative deal in a very long time. It is the television contract that makes moving out of Glendale a move the NHL is trying to avoid because the greater Phoenix tv market is the 12th largest in the country. Only Houston (10th) and Seattle (14th) would meet the needs after the NHL had to give up Atlanta of satisfying those requirements. Houston has the facilities and potential for corporate support but they don't have a vocal calling to add hockey to the entertainment district like Seattle does. Another factor in wanting the team to stay in Glendale is the fact that they are willing to pay what amounts to corporate welfare therefore taking most of the risk while any potential owner mitigates his risk factor and maximizes his potential for earnings. Not a bad deal if you are a billionaire owner wanting others to finance your toy. But the local government has to make a choice and right now it appears they aren't willing to put up the $15 mill. a year AND half of the money to purchase the franchise as is currently being demanded along with an out option for the owner after 5 years (no out option if Glendale bleeds cash for them). It will come to a head in the next few days and an announcement will be forthcoming probably right after the 4th of July holiday (if not at the draft) and Seattle will end up with a new team. If they couldn't close a deal after multiple attempts before now there are some very clear disadvantages to owning a team in the desert even beyond what we hear or think we know. Wealthy men don't get that wealthy by being foolish and they don't run from reasonable risk....yet in this case none is willing to gamble on the risk/reward factor. So get ready Seattle, you get a shot at proving you will be worthy of having a new NHL franchise. Quebec probably gets a franchise when Bettman announces after next season (or more likely during it) that the NHL will hold a disbursement draft to help the 2 new franchises they voted on to expand the league to 32 teams.....and more importantly to allow the 30 other owners to cash in on the huge franchise fee's those expansion teams will be made to pay.
Bettman has already said they could use Key arena as a temporary home while the new arena gets built. A new arena has already been approved and all the financing from both Hansen (the guy wanting an NBA team) and the city is in place. Quebec is not viable with the tv contract blocking any such move. Why would the NHL risk the lawsuit and voiding of guaranteed money contract to move into a city that clearly violates the terms? Plus Quebec even if they wanted to move them there would face extreme expense due to the realignment and the teams in the west would argue against the move (they need 2/3 approval from owners to move the team). Imagine the travel costs to play 41 games 3 time zones away and the added travel costs for the western conference teams to fly into Quebec for what amounts to a one game road trip 3 times a year. Wont happen. And Glendale if it were viable the NHL would have had no trouble selling the team....billionaires have absolutely no issue with calculated risk as long as there is any viable way to turn a profit. They didn't get rich being stupid, the only potential owners who were willing to gamble on Glendale required the city to assume the huge majority of risk....RSE the new group proposed the city accept all but $1.2 mill. of the teams potential losses and they are demanding an out clause on top of that.
- 8 years ago
Starting? It's been a circus since Gretzky
Quebec is ready for a team but any team there will fail economically, and any non-biased economist worth their salt has pointed that out and why.
" being that the team owners are now paying for the coyotes and that bettman is being paid by the owners why is the team still in Arizona when they all have to pay for the loses?"
Not.....even.....close. I can only suggest to you that if you're actually interested in this, you have a lot more reading to do. I wouldn't advise it though, every time I think about these shenanigans it makes me want to tear my hair out. It doesn't matter what your stance is or who you're a fan of, this whole thing is aggravating to its core.
- 8 years ago
I totally agree. The yotes have lost money ever since the league bought them. ITS TIME TO MOVE THEM. Markham, Quebec, Seattle. Anyone will do my fancy
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- 8 years ago
Bettman told the city to either s**t or get off the pot (for lack of a better term). If that's not a wakeup call I don't know what is.
- Anonymous8 years ago
It's been a circus for years. QC is ready.