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

[Llama19]

Glendale trade Arizona Coyotes for professional bull riding team at Gila River Arena

To quote:

"Professional hockey players may be leaving Glendale's Gila River Arena at the end of the NHL season, but a new team of professional bull riders is coming to town.

The Arizona Bull Riders is one of eight teams in a league the Professional Bull Riders organization is launching.

The team format is a change for the rodeo sport that traditionally features individual competitions.

The PBR Team series begins in June with a 10-weekend season that ends in a team playoff. Each team will host a bull riding event in their home market and a Western lifestyle festival.

Most competitions will be three-day events with three games per team. The team with the best results throughout an event will be declared the winner."

Source: www.azcentral.com/story/news/local/glendale/2022/01/08/team-bull-riders-new-league-call-glendale-arena-home/9131399002/

 

[Boris Zubov]

I was interested to read in the new Hockey News Money & Power 2022 issue that franchise valuations are generally determined or authorized by Gary Bettman, and that despite the sinkhole that they may find themselves in, the Coyotes minimum asking price would be $750 m US.

Not sure if Quebec billionaires could afford that?

I know it would then set the Nordiques' value at at least $750 m US but that is a lot of cash to find.

They can ask $750M, but nobody in their right mind would pay that. The NHL might try to save face & come to some hush hush agreement where the agreed sale price is way lower than number that gets published.

 

[TheLegend]

Glendale trade Arizona Coyotes for professional bull riding team at Gila River Arena

To quote:

"Professional hockey players may be leaving Glendale's Gila River Arena at the end of the NHL season, but a new team of professional bull riders is coming to town.

The Arizona Bull Riders is one of eight teams in a league the Professional Bull Riders organization is launching.

The team format is a change for the rodeo sport that traditionally features individual competitions.

The PBR Team series begins in June with a 10-weekend season that ends in a team playoff. Each team will host a bull riding event in their home market and a Western lifestyle festival.

Most competitions will be three-day events with three games per team. The team with the best results throughout an event will be declared the winner."

Source: www.azcentral.com/story/news/local/glendale/2022/01/08/team-bull-riders-new-league-call-glendale-arena-home/9131399002/

PBR has held events at GRA over the past few years. So if this is Glendale’s idea of “new and exciting events” then good luck.

 

[Boris Zubov]

PBR has held events at GRA over the past few years. So if this is Glendale’s idea of “new and exciting events” then good luck.

Only 41 dates left to fill.

 

[MNNumbers]

PBR has held events at GRA over the past few years. So if this is Glendale’s idea of “new and exciting events” then good luck.

Trying this without snark and sarcasm...

This news would tell you that there is no going back, and Glendale won't be the temporary home next fall.

 

[TheLegend]

Trying this without snark and sarcasm...

This news would tell you that there is no going back, and Glendale won't be the temporary home next fall.

No snark taken. It was a forgone conclusion.

I’ve never felt Meruelo was a person who would allow himself to go “crawling back” (as some might put it) to Glendale.

I also wouldn’t doubt he’d already begun working on an alternative short term location before Glendale even announced they weren’t renewing the lease.

Nor am I ignoring it could all fall apart and he sells/moves the franchise.

 

[Dirty Old Man]

The PBR Team series begins in June with a 10-weekend season that ends in a team playoff. Each team will host a bull riding event in their home market and a Western lifestyle festival.

Most competitions will be three-day events with three games per team. The team with the best results throughout an event will be declared the winner."

This news would tell you that there is no going back, and Glendale won't be the temporary home next fall.

That sounds like exactly one event per season in Glendale, and more likely than not prior to the start of the NHL season...this doesn't at all preclude the NHL being there.

Kind of a nothing announcement for this discussion really...figures.

 

[gstommylee]

I was interested to read in the new Hockey News Money & Power 2022 issue that franchise valuations are generally determined or authorized by Gary Bettman, and that despite the sinkhole that they may find themselves in, the Coyotes minimum asking price would be $750 m US.

Not sure if Quebec billionaires could afford that?

I know it would then set the Nordiques' value at at least $750 m US but that is a lot of cash to find.

No way coyotes are worth more than the amount that Seattle paid.

 

[TheLegend]

No way coyotes are worth more than the amount that Seattle paid.

It’s not what they’re worth.

It’s what they think the destination market would be worth.

 

[powerstuck]

No way coyotes are worth more than the amount that Seattle paid.

NHL as a business has 32 assets in various locations. Sure, you can easily rank them 1 to 32 in term of monetary value. But NHL, as a business will do everything it can to make you, me and everyone else believe every single one of the 32 assets is worth just as much if not more as the one ranked #1.

 

[TheLegend]

Hey @MNNumbers

I finally read the PBR article and to be honest, it’s nothing more than a fluff piece that Glendale probably wanted out to prop up their narrative that life after a Coyotes will be all stars and unicorns.

And here’s why. The PBR has been at GRA once or twice per year for the past few years. This “league format” isn’t going to add very many more event days than they were getting before. One, many two weekends at the most. There’s also very little overlap with the NHL season.

So really….. this article has more “let’s add more drama to BoH” value than it does to Glendale’s bottom line.

I can almost bet as the NHL season draws to a close we’ll see even more of these pieces coming out of Glendale.

 

[jkrdevil]

So what is the status of the Tempe proposal and timeline for approvals for it to move forward? It’s January, so I would assume things have to be moving forward in the next few months or it is time to pull the plug.

The team probably isn’t going to play out of a temp venue if they are just going to have to move out of Az because the Tempe deal fall through.

 

[Llama19]

So what is the status of the Tempe proposal and timeline for approvals for it to move forward? It’s January, so I would assume things have to be moving forward in the next few months or it is time to pull the plug.

The team probably isn’t going to play out of a temp venue if they are just going to have to move out of Az because the Tempe deal fall through.

The consultant report is likely to presented...
to the city council...
by the end of February...
then the real drama will start...

Fully expect the Coyotes fans...as noted previously...
to start attending council meetings...next week...
and the Coyotes organizational PR machine ramp up, too...

 

[TheLegend]

Yeah… maybe one of them will give a shout out to their friends on HFBoards like what happened in Glendale in 2014.

(And before anyone thinks this is a troll post there are receipts out there and long time posters will remember it well.)

 

[Ernie]

It's delusional to think that Meruelo won't go back to Glendale because of some kind of principle on his part and not because they won't touch him with a 10 foot pole.

 

[Boris Zubov]

Yeah… maybe one of them will give a shout out to their friends on HFBoards like what happened in Glendale in 2014.

(And before anyone thinks this is a troll post there are receipts out there and long time posters will remember it well.)

Can you please summarize for those of us who weren't around then? Thanks.

 

[Llama19]

 

[Boris Zubov]

 

[gstommylee]

If those no votes remain whelp there goes yotes remaining in arizona.

 

[Mightygoose]

So currently 3 yes, 2 no and 2 undecided but leaning no

Looks similar to Glendale pre 2013 agreement. The difference is Tempe doesn't have a current arena with decades left to pay.

Proponent concerned if it's a no, the Coyotes could do business with the Salt River Pima–Maricopa Indian Community.

I think there is a bigger threat they could do business with if it's a no. They may not even need a no to kill it

 

[The Lighthouse]

So currently 2 yes, 3 no and 2 undecided but leaning no

Looks similar to Glendale pre 2013 agreement. The difference is Tempe doesn't have a current arena with decades left to pay.

Proponent concerned if it's a no, the Coyotes could do business with the Salt River Pima–Maricopa Indian Community.

I think there is a bigger threat they could do business with if it's a no. They may not even need a no to kill it

Also seems like there's room here for good will through paying remediation costs:

The land site in question for the development was previously used as a sand and gravel mining operation and a dump. It would require an estimated $70 million in remediation costs. The Coyotes have proposed to pay $40 million for the eastern parcel to cover a portion of the remediation cost, but their willingness to pay their entire cost might be enough to sway the council, one source said.

If Meruelo is serious about this proposal I'd imagine they can get him to pay the full amount to get this through.

I'd expect some back and forth negotiations since the undecideds will use their openness as leverage for some of their priorities. It'd also be unrealistic to expect no changes to a proposal and for it to be accepted as-is when you're talking about such a significant development.

 

[TheLegend]

So currently 2 yes, 3 no and 2 undecided but leaning no

Looks similar to Glendale pre 2013 agreement. The difference is Tempe doesn't have a current arena with decades left to pay.

Proponent concerned if it's a no, the Coyotes could do business with the Salt River Pima–Maricopa Indian Community.

I think there is a bigger threat they could do business with if it's a no. They may not even need a no to kill it

Just read the article and pretty much agree with your summary. Other than Tempe wouldn’t be on the hook for an arena no matter what. The bonding part was not up front and it didn’t apply to the arena itself.

I’d pretty much felt early on there were at least a couple of “no” votes on the council. Was really worried that the public spat over the unpaid taxes would hurt Meruelo and it obviously has.

 

[Mightygoose]

Also seems like there's room here for good will through paying remediation costs:



If Meruelo is serious about this proposal I'd imagine they can get him to pay the full amount to get this through.

I'd expect some back and forth negotiations since the undecideds will use their openness as leverage for some of their priorities. It'd also be unrealistic to expect no changes to a proposal and for it to be accepted as-is when you're talking about such a significant development.

For sure there will be some room to move if they feel it's close.

2 thoughts that cross my mind are if the 2 undecided are leery about Meruelo paying bills in a timely manner, pledging an extra 30 million may not be enough if they don't have confidence in his ability at all.

Secondly, an election is scheduled for March 8. How would that affect the decision making process and how many respective yes, no and undecideds will be back?

 

[GKJ]

For sure there will be some room to move if they feel it's close.

2 thoughts that cross my mind are if the 2 undecided are leery about Meruelo paying bills in a timely manner, pledging an extra 30 million may not be enough if they don't have confidence in his ability at all.

Secondly, an election is scheduled for March 8. How would that affect the decision making process and how many respective yes, no and undecideds will be back?

When I read the link, and it doesn't know who the investors are, and then I read other posts on it, it would seem that part has to be worked out. They gotta know where the money is coming from, and it would seem to have to be that way in any deal they make.

 

[The Lighthouse]

2 thoughts that cross my mind are if the 2 undecided are leery about Meruelo paying bills in a timely manner, pledging an extra 30 million may not be enough if they don't have confidence in his ability at all.

On this point, it does look like the tax problems really did have the negative effect some people thought they might.

Per those sources, there are three yes votes, two no votes and two votes that are undecided, but leaning toward no after the Coyotes’ recent failure to pay taxes and bills came to light.

“The Coyotes certainly aren’t doing themselves any favors with the negative news stories,” one source said. “I would imagine if another negative story comes up on (owner Alex) Meruelo or the organization or their business practices, it probably will die. Those stories hurt tremendously.”

I'd want a whole lot more up front in this kind of scenario.