CXLI - UPDATE 1/27 - Coyotes working on deal to play at 5,000-seat arena at ASU

[Boris Zubov]

I think the alligator in the swamp this week is Rocky Wirtz.

Next week, new alligator...

Bettman completely glossed over that one as well. He spent more time on the Calgary arena situation (blaming the city might I add) than Rocky. Talk about tone deaf.

 

[Legion34]

Wait so are they actually suggesting that the visiting teams are in a adjacent building. And will what? Walk across the lot?


That has to be wrong …

 

[Legion34]

Bettman completely glossed over that one as well. He spent more time on the Calgary arena situation (blaming the city might I add) than Rocky. Talk about tone deaf.

rocky is his boss too.
People forget that it’s not actually Gary’s league.

 

[Llama19]

ARIZONA BOARD OF REGENTS agenda posted...

1:50 p.m. ADMINISTRATIVE BUSINESS

Capital Development Plan and License Agreement Approval, (ASU)Arizona State University (ASU) asks the board to approve (1) its $134.7 million Capital Development Plan (CDP), which includes one resubmitted project, and (2) license agreements for use of the Multipurpose Arena in excess of three years.

Source: public.azregents.edu/Board/Amended-Agenda.pdf

That actual detailed plans...which should have been attached to the agenda and made public before the vote...have not been released...yet...

Here is the plan...

Capital Development Plan and License Agreement Approval

public.azregents.edu/Board/Item%203__ASU%20Capital%20Development%20Plan.pdf

 

[Boris Zubov]

rocky is his boss too.
People forget that it’s not actually Gary’s league.

I'm well aware, but Uncle Gary is the face of the league & the voice of the BOG. At some point one would think there needs to be accountability.

 

[Boris Zubov]

Wait so are they actually suggesting that the visiting teams are in a adjacent building. And will what? Walk across the lot?


That has to be wrong …

Construction is well under way. Not sure what other options there would be on a building that small.

 

[Legion34]

Here is the plan...

Capital Development Plan and License Agreement Approval

public.azregents.edu/Board/Item%203__ASU%20Capital%20Development%20Plan.pdf

this makes no sense. It says it starts construction January 2021 for completion in dec 22. Did they already break ground?

 

[93LEAFS]

"compared to a market like Winnipeg"? Your comment makes no sense, unless we are to believe you live in Toronto and therefore understand little outside of southern Ontario.

The Winnipeg Jets DO control their area. A very busy arena. Which indeed "adds a ton of value" to the hockey club.

It takes barely 30 seconds and a minimal knowledge of Google to find:

"Canada Life Centre (formerly the MTS Centre, then Bell MTS Place) in Winnipeg, Manitoba, Canada is one of the busiest venues in North America since its opening in 2004.[1] In 2008, its placed 19th busiest arena in the world and 11th in North America, with 385,427 tickets (not including sporting events)[2] In 2009, it ranked as the 39th busiest arena in the world, and 26th busiest in North America."

It's busy due to AHL games, not major concerts or NBA which provide a bigger margin on tickets. Winnipeg doesn't see huge tours to the same extent as other NHL markets.

 

[Legion34]

Construction is well under way. Not sure what other options there would be on a building that small.

so they expect players to walk across the lot? That’s the dumbest thing I have ever heard. The goalie? Insanity

 

[Boris Zubov]

so they expect players to walk across the lot? That’s the dumbest thing I have ever heard. The goalie? Insanity

Not disagreeing, but this is where we are.

 

[MNNumbers]

It's a

Wait so are they actually suggesting that the visiting teams are in a adjacent building. And will what? Walk across the lot?


That has to be wrong …

It's a connected building, and it's the home and away teams and everything in the CBA that the home team is required to provide

 

[PainForShane]

Now, imagine in July, when Tempe still hasn't decided....now what?

Not predicting, just supposing.....

For that reason....that......
ASU can't happen without a commitment from Tempe, which means that the 150K Sq ft annex can't start being built until there is a commitment from Tempe....
And, that a relocation, if it has to happen because there isn't a commitment from Tempe, has to happen starting in mid June (more or less)...

Then, I suppose Bettman will have to tell Meruelo that there is a deadline for Tempe to sign off, and if that deadline isn't met, then.......???

Agree with everything here (and not just because I really appreciate your translation post I also agree with all the logic here HA!!!).

You know what the solution is? Alex Meruelo may not like it but here goes:

1) ASU and Coyotes work something out for 3-4 years with that option for year 4 and an out clause for the Yotes if the Tempe arena doesn't come through. This is what they should be doing anyway. Alex Meruelo pays for the NHL level amenities, ASU's publicly already said they need the money upfront so hopefully AM agrees without trying any sleazeball tactics.

2) Tempe decision gets delayed, or not, but either way there should be a decision this calendar year of 2022. If they say yes, then great, the Yotes stay at ASU for 3-4 years while the Tempe arena gets built and then move across the street.

3) If Tempe says no, then Yotes get sold / leave at the end of 2022-2023 season. Also possible that Glendale can't fill the arena and / or gets new mgmt and invites the Yotes back, personally wouldn't expect that but it's possible.

4) The only person really at risk in this situation is Meruelo, who has to pay the $15-20m in cash up front for the improved player amenities at ASU. But he should be able to get that money back when he sells the franchise you would think. So, limited downside assuming Meruelo has access to $15-20m of cash plus enough to fund the annual operating losses (who really knows).

5) Meanwhile, Gary should be teeing up potential ownership in Houston or KC (seems like he already is) in case Meruelo is actually broke and can't afford the 3-4 year lost revenues playing at ASU and has to sell the Coyotes as a distressed asset. This helps keep franchise valuations high which helps the other owners.

The more I think about it, from an ownership / leadership perspective it's not as much of a disaster as originally thought. Except for the players having to play in a tiny arena and the fans paying hundreds of dollars to sit on bleachers. Ok maybe it is a disaster still. But hopefully only one for the short term

 

[Legion34]

It's a


It's a connected building, and it's the home and away teams and everything in the CBA that the home team is required to provide

but how connected? Like are they going to walk 5 minutes each way between periods?

seems really dumb

 

[Boris Zubov]

Here is the plan...

Capital Development Plan and License Agreement Approval

public.azregents.edu/Board/Item%203__ASU%20Capital%20Development%20Plan.pdf

For people looking for a timeline, it says on page 11 that expected completion date of the annex would be December '22 if all the approvals are in place. Hello 8-12 week road trip to start the season.

 

[BacktoLurking]

Exsqueeze me? Baking powder?

So which is it? Do you not live in Arizona, or are you a delusional ASU grad? Because I can't think of any other category that would suggest that.

Neither of your categories fit. I don't care about Sun Devil football (or football in general), but I am one hundred percent correct about this, with the caveat that you could flip the order of ASU football and the Cardinals this year/past couple years because the Cardinals were good.

 

[JimAnchower]

I could easily imagine: Tempe drags its feet and there is no arena well into the summer. What now? Short notice move the only choice is Quebec. Yotes are asking for a 3 year lease. You can't sign off on that without a deal on an arena. If you had a one year lease, that would be okay, but that 150,000 sq ft annex is a lot to do for one year..... Big conundrum.

I don't think the problem is the length of the lease or even the lease itself. It's not going to be a usual lease, where a city wants you stay long term. I imagine it's going to have a lot of exit clauses. The arena could be completed before three years, there could be litigation or something found while clearing the site that extends and delays completion of the arena.

For me, and you brought this up in another post, the issue is the annex building that needs to be built for them to play at ASU next year. It isn't a normal situation where everything is ready for them, they actually have to pay $20-30 million to play there next year. And that outlay will be for something temporary. If Tempe drags it's feet into the summer or even longer, they are stuck at ASU (unless there is an emergency relocation). That's why I asked about the timeline of completing the annex earlier in the thread. The drop dead date is the date that building needs to start to complete the annex by the start of next season (or home schedule). That's the point they need to send ASU $20-30 million for the building. If they have to back out because Tempe says no before that date, then I don't think there is any issue and they can leave without any problems.

 

[Legion34]

For people looking for a timeline, it says on page 11 that expected completion date of the annex would be December '22 if all the approvals are in place. Hello 8-12 week road trip to start the season.

But that assumed a dec 21 start. I’m assuming they are already under way?

Either way with the supply chains as they are
In feb….. wonder how realistic December is?

 

[Dirty Old Man]

Neither of your categories fit. I don't care about Sun Devil football (or football in general), but I am one hundred percent correct about this,.

I've lived in the valley since 1994, and I completely disagree.

 

[Boris Zubov]

But that assumed a dec 21 start. I’m assuming they are already under way?

Either way with the supply chains as they are
In feb….. wonder how realistic December is?

Not sure where you're getting the 12/21 start. Page 10 says the Coyotes approached ASU in 12/21.

From Page 11...

Project Status and Schedule
• General construction is scheduled to begin when the design is complete and after all approvals are in place. Project substantial completion is targeted for December 2022.

 

[Pandemonia]

It's busy due to AHL games, not major concerts or NBA which provide a bigger margin on tickets. Winnipeg doesn't see huge tours to the same extent as other NHL markets.

Show my original post, and your response, to a nearby adult and have them explain to you what "not including sporting events" means.

They might also be kind enough to point out that you have no idea what Winnipeg does or doesn't see in terms of huge tours.

 

[Legion34]

Not sure where you're getting the 12/21 start. Page 10 says the Coyotes approached ASU in 12/21.

From Page 12...

Project Status and Schedule
• General construction is scheduled to begin when the design is complete and after all approvals are in place. Project substantial completion is targeted for December 2022.

If you look at the dec 22 plan timeline it specifically says it would start construction in jan 21 and complete in dec 22.

so if they haven’t started yet. Wouldn’t that delay it? Kinda simple. If it takes 11 months to build. Delaying the start would delay the completion

Also. The supply chains are a disaster. Materials are in shoddy supply. They are facing trucker shortages. Would that not delay it?

simple questions

 

[Boris Zubov]

If you look at the dec 22 plan timeline it specifically says it would start construction in jan 21 and complete in dec 22.

so if they haven’t started yet. Wouldn’t that delay it? Kinda simple. If it takes 11 months to build. Delaying the start would delay the completion

Also. The supply chains are a disaster. Materials are in shoddy supply. They are facing trucker shortages. Would that not delay it?

simple questions

LOL. I'm not the gatekeeper of the project & I briefly skimmed over this proposal. Could you cite a page number?

Also from Page 11....

• The proposed project plan revisions will not delay the November 2022 opening of the Multipurpose Arena for the ASU Sun Devils ice hockey season. The facility is expected to be available in December 2022 to host the first Arizona Coyotes home game of the season.

 

[JimAnchower]

If you look at the dec 22 plan timeline it specifically says it would start construction in jan 21 and complete in dec 22.

Those dates are for the arena, not the annex.

 

[mouser]

If you look at the dec 22 plan timeline it specifically says it would start construction in jan 21 and complete in dec 22.

so if they haven’t started yet. Wouldn’t that delay it? Kinda simple. If it takes 11 months to build. Delaying the start would delay the completion

Also. The supply chains are a disaster. Materials are in shoddy supply. They are facing trucker shortages. Would that not delay it?

simple questions

The arena is over 50% complete. They're talking about incorporating the modifications.

 

[TheLegend]

Glendale city official: 'Gary Bettman is either misinformed or he's a liar'

Kevin Phelps, city manager for Glendale, says the city never forced the Coyotes' hand when it came to negotiating a long-term lease for the Gila River Arena

Source: kencampbell.substack.com/p/glendale-city-official-gary-bettman

PR games.....

Coyotes offered to sign a 3 year lease with options for two more. Phelps has admitted to that on the record. Glendale refused that and wanted a 12 or 15 year agreement. Phelps is also on the record for that.

PLUS.... Glendale also wanted the Coyotes to invest in upgrades to the arena on top of that. That's also on the record. (which I feel prompted Meruelo saying he wasn't putting another dime into that arena which Phelps later used to sling more mud publicly.)

Coyotes walked and Glendale started airing out the dirty laundry in public. While I think Bettman's "20 years" was an exaggeration his comment was returning the favor to Glendale's mud slinging the past few months.