Phoenix Coyotes: Glendale Approves Nearly $200 Million Deal to Keep NHL Team

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Glendale City Council approved in a 5-2 vote a deal to pay $197 million to Matthew Hulsizer, a Chicago businessman poised to buy the Phoenix Coyotes from the National Hockey League.

Of that money, $100 million is expected to offset for Hulsizer the $170 million price tag that the National Hockey League placed on the Phoenix Coyotes. The remaining $97 million, which will be paid over the next 5 1/2 years to Hulsizer, would cover the management of the arena and scheduling concerts and other non-hockey events.

Reassurances from Glendale staff and hired consultants about the financial wisdom behind the deal was not enough to convince Councilman Phil Lieberman and Councilwoman Joyce Clark.


The two voted no, expressing concerns about the cost to the city.

Clark asked whether any taxpayer's dollars will be used to pay the debt.

Art Lynch, the city's former chief financial officer and current consultant, said no. He said that city services were not going to be affected and that debt would be covered by parking revenues.

Read the previous blog post. Watch the video of the Glendale City Council meeting.
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Ron
Ron

The bonds of 100 million with a interest rate of 6% and paid over 30 years means according to the mortgage calculator $599,551.00 per month or 7,194,612.00 per year.

This means that the 5500 stalls will have to produce $109.00 per month each (assuming 40 games and only the Coyotes games income, it's $32.70 per game), while this is technically possible to collect this revenue assuming concerts and other events, I don't see it happening. The Coyotes have a hard time getting over 10,000 people at a game, with free parking, I doubt they will have 5500 people willing to pay more for parking and service fee's then the tickets themselves.

Bill
Bill

Ron, this is a good first step. But the agreement to keep the team here is only for 23 years so you really need to figure the "mortgage" over that period. Also, this doesn't factor in the $97 million to be paid to the team over the next 5-and-a-half years. That obviously blows a hole in any theory that parking revenue could cover all those costs.

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