CXL - UPDATE 12/9 - Coyotes settle bills after unpaid taxes come to light

[DoyleG]

More in the daily life of the Arizona Coyotes.

The Evergrande of the NHL.

 

[Boris Zubov]

ASM sends Coyotes letter detailing when they expect rent and other expenses to be paid.

That list of debt still outstanding is ugly. So embarrassing that the team operates on this level.

 

[TheGreenTBer]

Honestly...I'm speechless. I don't even know what to say anymore.

Does anyone else feel like they're getting dumber the more they pay attention to this? I don't exactly have many brain cells to spare so I should be conserving here.

 

[hockeyguy0022]

Does Glendale reconsider it's overall position if the NHL "Owns" the coyotes, while looking for a new owner?

So many issues and directions things could go.

 

[Boris Zubov]

Does Glendale reconsider it's overall position if the NHL "Owns" the coyotes, while looking for a new owner?

So many issues and directions things could go.

No chance. This is the same NHL that held them over a barrel two years in a row & extorted $50M from them.

 

[Jetsfan79]

I have no doubt something is really wrong in Arizona.

BUT isn't stange Glendale doesn't mention the remaining debt when threatening to evict?. It only seems to be brought up after the team paid for the taxes and arena fees. Why not mention the rent before? It almost seems they were saving bringing it up in case the team actually paid up for the other expenses. "oh they finally paid us eh?,,well we can still make them look bad by now mentioning they also owe us rent",

 

[hockeyguy0022]

No chance. This is the same NHL that held them over a barrel two years in a row & extorted $50M from them.

Then ya, they have immediate problems. They NEED somewhere decent to play out of without headache/drama at a minimum, coming up shortly as I'm sure the NHL does scheduling in the spring.

I would bet that, if we don't hear anything about a temp solution by end of January, they are selling and/or moving completely.

It's already late if you have to say replace the ice plant at the older Arizona arena etc..

At the least.

 

[Ernie]

Well one…. Morgan isn’t primarily a sports business reporter where Strang is.

Two… Strang has a national audience where Morgan is strictly local. (Morgan did work at The Athletic until they laid off virtually everyone covering the Arizona market.)

Three….. someone in Glendale leaked the story directly to Strang. Just like they did before.

Those aren't very good reasons.

 

[Jetsfan79]

So Was the Dec 20 deadline only to pay the fees and taxes? Or have they now "tacked on" the late rent to that eviction notice?

 

[Boris Zubov]

So Was the Dec 20 deadline only to pay the fees and taxes? Or have they now "tacked on" the late rent to that eviction notice?

If you read the document posted in the Craig Morgan tweet, they still are still required to pay approx $900k in misc arena fees, etc by 12/20.

 

[Melrose Munch]

For a guy who has been talking about "facts over feelings" you're certainly ignoring the facts here. Attendance downtown tailed off after the novelty of the NHL wore off. Their first 5 seasons in Glendale they drew better than their last 3 years downtown. Their last season downtown they only drew 13,229 per game even though even though they were a playoff team 5 out of 6 seasons downtown.

Well downtown has lower capacity than Glendale to be fair. But obivously you remember the firesale they had near the end when they sold off all their popular players.

Again it goes back to the core point, Not everything can be quantified. Cities pass taxes for arts, bike lanes, etc. lots of things where you can't prove out on a spreadsheet but they add to the quality of life. Dayton loses residents and businesses because people don't want to live there as much as they would rather live in places where there is more going on. The point on Louisville is that you're saying they are just fine without a team, but they have been trying and practically begging to get one. Why is that? You think that every city that's been pursuing major league sports teams is just stupid and a guy that runs a blog in his apartment in Brooklyn have it all figured out? San Francisco didn't lose the 49ers they just moved down the highway. Ask cities that lost teams entirely and never got them back feel about it.

Firstly, you cant be comparing the arts or bike lanes, which are used everyday to pro sports. Period. Louisville would like to have one, they're not begging every single day obviously. No one leaves or arrives solely because of pro sports. That's just one of many factors. I don't think anyone is that one track minded. I kind think everyone else saying it's a waste is correct. I mean, people have done studies on it.

I mean do you seriously think losing the rams hurt St. Louis image, it was already a baseball city. Will life be over if the Coyotes leave? Probably not.

 

[mouser]

The Arizona Coyotes may have settled the $1.3 million in outstanding arena payments that threatened to lock them out of their own arena by Dec. 20 on Thursday morning, but the franchise's financial woes are far from resolved, the city of Glendale says. Mike Stephens has more.

Glendale City Manager: Coyotes Still Haven't Paid Rent for Arena, Remain Skeptical of 'Human Error'

If my math is right, that's over 4 million dollars in debt they owe. assuming both of the numbers in the documents are expected to be paid back

Yikes dude.

That list of debt still outstanding is ugly. So embarrassing that the team operates on this level.

Rent and majority (all?) of the expected payments aren’t delinquent if you carefully read through the letter details. Most of these obligations are paid twice a year and the first half due date hasn’t hit yet.

Notice the dates on page 2 when “half of the annual amounts are due”.

 

[gstommylee]

So Was the Dec 20 deadline only to pay the fees and taxes? Or have they now "tacked on" the late rent to that eviction notice?

If they are looking for any little thing just to end the lease now, it would be an easy short court case for breath of lease in favor of the yotes.

 

[Boris Zubov]

If they are looking for any little thing just to end the lease now, it would be an easy short court case for breath of lease in favor of the yotes.

You're still beating that drum? Yesterday, according to you, the city was completely overstepping their authority.

 

[Metallo]

Rent and majority of the expected payments aren’t delinquent if you carefully read through the letter details. Most of these obligations are paid twice a year and the first half due date hasn’t hit yet.

The payments at the bottom of page 1 are outstanding, i.e. late, right?

 

[Boris Zubov]

Rent and majority of the expected payments aren’t delinquent if you carefully read through the letter details. Most of these obligations are paid twice a year and the first half due date hasn’t hit yet.

Notice the dates on page 2 when “half of the annual amounts are due”.
View attachment 489429

There is still $900k in arena fees due by 12/20. The final paragraph detailing the constant disputes & the 2.4M in forgiveness is also part of what I referring to.

 

[mouser]

The payments at the bottom of page 1 are outstanding, i.e. late, right?

If you look at page 2, then I’d say no they’re not late. For example it looks like Dec 20th is the contractual date for the first half of the $500k rent to be paid. Pretty much all of the numbers cited on the bottom of page 1 have future contractual payment deadline details on page 2.

Notice there’s no assertion in the letter from Glendale that any of the 2021-22 outstanding team obligations they cite are late or otherwise delinquent in breach of the contract.

 

[Gotaf7]

If they are looking for any little thing just to end the lease now, it would be an easy short court case for breath of lease in favor of the yotes.

You really have no clue what your talking about.

 

[Metallo]

If you look at page 2, then I’d say no they’re not late. For example it looks like Dec 20th is the contractual date for the first half of the $500k rent to be paid. Pretty much all of the other numbers cited on the bottom of page 1 have future contractual payment deadline details on page 2.

Notice there’s no assertion in the letter from Glendale that any of the 2021-22 payments they cite are late or otherwise delinquent in breach of the contract.

OK good catch, it's weirdly drafted, they are stating the same amounts due multiple times for some reason, lol.

 

[MNNumbers]

If I have it right, the city was in the right to be able to cancel their business license. The problem has now been taken care of, but that does not obligate Glendale to go back to 'business as normal'. So, if they are late on these payment, the city has legal standing for again revoking the business license. Correct?

 

[mouser]

OK good catch, it's weirdly drafted, they are stating the same amounts due multiple times for some reason, lol.

ASM/Glendale is saying you owe us this money so far, or will owe it by the end of the season. But not that payment is overdue at this time per the contract.

 

[TheLegend]

If I have it right, the city was in the right to be able to cancel their business license. The problem has now been taken care of, but that does not obligate Glendale to go back to 'business as normal'. So, if they are late on these payment, the city has legal standing for again revoking the business license. Correct?

That's how I'm reading it.

 

[TheLegend]

Those aren't very good reasons.

I didn't expect you to think otherwise.

Nor do I care if you did.

 

[Melrose Munch]

They were never "fine". They have yet to make dollar one in profit since moving from Winnipeg, including the "glory years" of 96-02.

I don't disagree with but it was better initally. The bottom just fell out in the mid 2000s.

 

[Melrose Munch]

That list of debt still outstanding is ugly. So embarrassing that the team operates on this level.

Really a black eye on the NHL.

I wonder if this guy is really a billionaire.