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

[TheLegend]

Wow. The hits just keep on coming.

Don't worry, this is just a negotiating tactic

Nyah.... not a negotiating tactic.

They weren't going back to Glendale, ever.

Just saw the Strang article. This is all about back taxes. $250,000 in city taxes owed to Glendale and another $1.1 million owed to the state.

Coyotes have 10 days to appeal. But to be honest, they should just pay it and move on. The optics of this are absolutely horrible no matter how you look at it.

 

[aqib]

I have to admit I like the FoS website. His main idea, of course, is that every economic study which has been done neutrally suggests there is no economic benefit in the government agencies (state, city, etc....) building places to play for sports teams. *****(see footnote) The corollary to that is that there is obviously some other reason that city councils and state governments decide to build them, and of course, there is.....it's the emotional high that people get from feeling connected to the team that plays in their city, especially when that team is winning. It is obvious that this happens, because if some team which is usually middle of the pack has a couple of years of championship play, the ticket sales go up, the viewership goes up, and the memorabilia sales go up. The problem is, of course, that it is very difficult to quantify what that does for a community and weigh it against the cost of the team.

If you only look at the tax receipts from the games against the bond payments you will almost never show a win. However, no data source that I know of can trace every dollar spent by everyone attending the game. When I was in Cleveland every time a team from a city within driving distance came to town I would see thousands of people from out of town. Now what data source would track was 5-6K people from Detroit spent over the course of a 3 games series. Or 2K people who came from Toronto spent while in town for a Raptors game etc. How do you quantify the PR from having the Cavs in the finals 4 years in a row.

Sports teams are an amenity that people enjoy and make your city more desirable for many people to live in and yes the presence of major league sports do certify you as a "big city" I remember when Bud Adams died someone penned a column how the arrival of the Titans and Predators made Nashville an "it" city. Now 20 years later they got part of Amazon's HQ2 (5K jobs) would they have gotten that without the major league sports? I don't know but Austin had a lot going for it and they didn't make it.

As far as Glendale goes, if everything that was originally planned built at Westgate had happened the 180M for the arena wouldn't have been a bad deal.

 

[Rob]

Is it possible that the NHL has to step in and make payment?

 

[ponder719]

You can't just "throw the keys on the table" for a $400million asset.

It wasn’t worth $400M or anything close at the time, but Ralston Purina once did exactly that with the Blues. Not the weirdest possible outcome here.

 

[BnGBear1970]

Is it possible that the NHL has to step in and make payment?

I mean, either Meruelo will or the league. No one wants this problem out there for long.

 

[Fatass]

Is it possible that the NHL has to step in and make payment?

Isn’t Meurelo with near 2 Billion?

 

[Rob]

I mean, either Meruelo will or the league. No one wants this problem out there for long.

In the big picture 1.55 million isn’t that much. However, I can’t imagine the BOG being happy about it.

Hockey historians. Has the NHL had to come to the financial rescue of a franchise during the season before?

 

[Mightygoose]

And if the league ends up paying it, what is Tempe going to think.

If he can't handle a bill less than 1.6 million, how will he finance a development about 1000 times that amount?

 

[Headshot77]

And if the league ends up paying it, what is Tempe going to think.

If he can't handle a bill less than 1.6 million, how will he finance a development about 1000 times that amount?

That's the kicker: he won't.

 

[DudeWhereIsMakar]

Quebec and Houston are eagerly awaiting now.

This is embarrassing for a hockey club...

 

[gstommylee]

Quebec and Houston are eagerly awaiting now.

This is embarrassing for a hockey club...

Can we stop the whole the team is gonna move out of the state every time the team gets something bad reported on them....

 

[TheLegend]

And if the league ends up paying it, what is Tempe going to think.

If he can't handle a bill less than 1.6 million, how will he finance a development about 1000 times that amount?

Bingo.

Even if he pays it, the damage is done now.

If you're Glendale, you couldn't have a better hammer to wield. And I don't blame them one bit.

If you're Tempe, now you're wondering what you're getting into.

 

[gstommylee]

Bingo.

Even if he pays it, the damage is done now.

If you're Glendale, you couldn't have a better hammer to wield. And I don't blame them one bit.

If you're Tempe, now you're wondering what you're getting into.

Tempe says no to a 1.2b dollar investment in their city where not all of that billion is coming from the coyotes over themselves over some back taxes...

And they lose out in getting that revenue from a piece of property that's sitting there doing nothing...

Tempe says no the league just moves the team to houston and let houston get that revenue having another pro team in the city.

Will tempe say no? I have no idea and neither does anyone else in here...

 

[CorbeauNoir]

So.....ummmm.....There's this....

Two more weeks :^)

 

[Headshot77]

Tempe says no to a 1.2b dollar investment in their city where not all of that billion is coming from the coyotes over themselves over some back taxes...

And they lose out in getting that revenue from a piece of property that's sitting there doing nothing...

Tempe says no the league just moves the team to houston and let houston get that revenue having another pro team in the city.

Will tempe say no? I have no idea and neither does anyone else in here...

Tempe did send out that letter that got leaked that essentially said "hey re are reopening the RFP to people who don't have professional sports franchises"

 

[gstommylee]

Two more weeks :^)

The team isn't moving in 2 weeks.

 

[Montrealer]

While I’m sure something will happen to at least keep the team in place (probably a league guarantee at this point would be required), the idea a lease cannot be annulled for nonpayment is frankly ridiculous. It happens all the time.

What, you think malls just let retail outlets stop paying rent and shrug their shoulders for the length of the lease agreement? Come on.

 

[gstommylee]

Tempe did send out that letter that got leaked that essentially said "hey re are reopening the RFP to people who don't have professional sports franchises"

And what make you think they'll get any more responses, anyone can response to a RFP and there was still 1 organization that responded.

 

[CorbeauNoir]

The team isn't moving in 2 weeks.

Does the 'two weeks' meme really have to be spelled out after all these years...?

 

[TheLegend]

I'm imagining the NHL Board of Governors meeting this weekend is going to be lively.

 

[gstommylee]

While I’m sure something will happen to at least keep the team in place (probably a league guarantee at this point would be required), the idea a lease cannot be annulled for nonpayment is frankly ridiculous. It happens all the time.

What, you think malls just let retail outlets stop paying rent and shrug their shoulders for the length of the lease agreement? Come on.

Its not about actually being annulled its all bout having it done legally and only the courts can give them the okay. Any landowner or property owner can't just kick anyone out even if they have a legit case they have to go through the courts. The courts can order the person to pay by certain date if payment doesn't come then an evict notice gets posted at the building that the person leasing as to be out by such and such date.

 

[JimAnchower]

I'm imagining the NHL Board of Governors meeting this weekend is going to be lively.

Not out of the realm of possibilities that there are only 31 teams attending.

 

[gstommylee]

Does the 'two weeks' meme really have to be spelled out after all these years...?

That's not how things work.... It'll get paid someway but that team isn't being actually locked out in 2 weeks nor the NHL will suddenly move the plug in 2 weeks and move them somewhere else right then and now out of state.

 

[Montrealer]

Its not about actually being annulled its all bout having it done legally and only the courts can give them the okay. Any landowner or property owner can't just kick anyone out even if they have a legit case they have to go through the courts. The courts can order the person to pay by certain date if payment doesn't come then an evict notice gets posted at the building that the person leasing as to be out by such and such date.

I think you’re confusing residential and retail leases. Unless Arizona is different, typically commercial leases can be ended if early termination conditions are reached, of course the lease will typically spell out these conditions, opportunities to cure, etc.

now, you can believe the city is just full of idiots with poor legal counsel that have no idea what they’re doing; I’m guessing that’s not the case.

 

[CorbeauNoir]

That's not how things work.... It'll get paid someway but that team isn't being actually locked out in 2 weeks nor the NHL will suddenly move the plug in 2 weeks and move them somewhere else right then and now out of state.

.............yes. Like every single other time the extremely prevalent 'two more weeks' line has been trotted out on this topic over the last 15-odd years. You figured it out.