CXLVIII - Coyotes owner Alex Meruelo had 'productive' meeting with Phoenix mayor

[No Fun Shogun]

I still have a hard time imagining Yotes fans trusting any process with Meruelo still involved as a potential owner and governor.

 

[Llama19]

That would be my guess. They'll let him keep the license as Roadrunners are technically a professional team and seeing how like 95%+ of gambling revenue comes from about 5 out of the 17 Sportsbooks in operation it's not worth the hassle to spend money on fighting him.

For posterity: It appears that you only need the franchise at time of application for the operator license and Section 5-1306 doesn't list "losing your sports franchise" as a reason to revoke your license, either.

5-1035 does state "Each person licensed under this chapter shall give the department written notice within thirty days after a material change is made to information provided in the licensee's application for a license or renewal."

I disagree...

Meruelo will likely lose his sports betting license...because he is/has lost his 'professional' franchise...

New Arizona Sports Betting Rules Propose Leeway for Coyotes Arena Situation

To quote:

"The change [to HB 2772] will allow the Coyotes to still qualify as playing in a “professional sports venue” when they move their games to Arizona State University’s new multipurpose arena next year. The city of Glendale announced in August it was opting out of its lease with the team for use of Gila River Arena.

The previous set of rules defined a professional sports venue as being bigger, capacity-wise, than the 5,000 seats the new Tempe arena holds.

“[A] ‘Sports facility’ means a facility that is owned by a commercial, state or local government or quasi-governmental entity that hosts professional sports events and that holds a seating capacity of more than ten thousand persons at its primary facility, one location in this state that hosts an annual golf tournament on the PGA tour and one location that holds an outdoor motorsports facility that hosts a national association for stock car auto racing national touring race,” the state’s original rules state."

Source: www.betarizona.com/news/new-arizona-sports-betting-rules-propose-leeway-for-coyotes-arena-situation

 

[TheLegend]

I disagree...

Meruelo will likely lose his sports betting license...because he is/has lost his 'professional' franchise...

New Arizona Sports Betting Rules Propose Leeway for Coyotes Arena Situation

To quote:

"The change [to HB 2772] will allow the Coyotes to still qualify as playing in a “professional sports venue” when they move their games to Arizona State University’s new multipurpose arena next year. The city of Glendale announced in August it was opting out of its lease with the team for use of Gila River Arena.

The previous set of rules defined a professional sports venue as being bigger, capacity-wise, than the 5,000 seats the new Tempe arena holds.

“[A] ‘Sports facility’ means a facility that is owned by a commercial, state or local government or quasi-governmental entity that hosts professional sports events and that holds a seating capacity of more than ten thousand persons at its primary facility, one location in this state that hosts an annual golf tournament on the PGA tour and one location that holds an outdoor motorsports facility that hosts a national association for stock car auto racing national touring race,” the state’s original rules state."

Source: www.betarizona.com/news/new-arizona-sports-betting-rules-propose-leeway-for-coyotes-arena-situation

ASU would be considered a “quasi-governmental” entity.

You have to remember they recrafted the gaming law just so the Coyotes could play at Mullett and Meruelo hold the license.

The Roadrunners are still a “professional sports franchise”

 

[Edenjung]

I still have a hard time imagining Yotes fans trusting any process with Meruelo still involved as a potential owner and governor.

We won't. thats for sure.
He lost every respect and trust any fan ever had for him.

 

[Shwan]

I disagree...

Meruelo will likely lose his sports betting license...because he is/has lost his 'professional' franchise...

New Arizona Sports Betting Rules Propose Leeway for Coyotes Arena Situation

To quote:

"The change [to HB 2772] will allow the Coyotes to still qualify as playing in a “professional sports venue” when they move their games to Arizona State University’s new multipurpose arena next year. The city of Glendale announced in August it was opting out of its lease with the team for use of Gila River Arena.

The previous set of rules defined a professional sports venue as being bigger, capacity-wise, than the 5,000 seats the new Tempe arena holds.

“[A] ‘Sports facility’ means a facility that is owned by a commercial, state or local government or quasi-governmental entity that hosts professional sports events and that holds a seating capacity of more than ten thousand persons at its primary facility, one location in this state that hosts an annual golf tournament on the PGA tour and one location that holds an outdoor motorsports facility that hosts a national association for stock car auto racing national touring race,” the state’s original rules state."

Source: www.betarizona.com/news/new-arizona-sports-betting-rules-propose-leeway-for-coyotes-arena-situation

That article was in 2022 and nothing happened, Saharabets still operates. I cannot emphasize enough how little the department of gaming cares about this once the market settled and 5 operators captured 95% of the market lol.

If Alex Meruelo wants to pay the state $150,000 a year for the next 2 years to lose money on an online Sportsbook, as long as it's within regulation they'll just deal with it when it comes time to renew the license.

 

[JS19]

This fits along the line that the League has technically deactivated the franchise.

This is weird. Why even give him another chance after what's transpired? Not to mention, the fanbase already hates him.

 

[stealth1]

This is weird. Why even give him another chance after what's transpired? Not to mention, the fanbase already hates him.

My guess is to throw him a bone for selling the franchise.

 

[AtlantaWhaler]

The only way Quebec will get a franchise is if we have a 2011 Thrashers/Jets situation again where the NHL needs a place with an arena ASAP and cant afford to wait.

You're forgetting the most important part. An ownership group that will pay the cost of the team and relo. Sounds like that fee is $1.3B as it stands today and I'm not seeing any report that there is such a group in Quebec.

 

[GKJ]

The franchise values is an important thing. There’s concern about what a Quebec City team would do to the value of the Canadiens. Same reason why Toronto 2 will never happen.

 

[TheLegend]

This is weird. Why even give him another chance after what's transpired? Not to mention, the fanbase already hates him.

It’s not giving him a chance as it is covering their own asses.

They had no direct way to remove him as owner or force him to sell. That would have triggered “the mother of all lawsuits” and Meruelo has already shown himself to be quite aggressive in that realm.

So they went the appeasement route and made what’s been referred to as a “godfather offer”.

Dangle a billion dollar carrot in front of him. Let him keep the rights to the Arizona market for the next five years (provided he can meet some yet unknown requirements).

They appealed to his ego. Keep him happy. Let him stay on the BoG (sitting in a chair in the corner of the room)

But at the same time they will still get a $1.2 billion expansion fee they would have got for SLC in the long run. And avoid getting their asses hauled off to court.

Step 3 - Profit.

 

[ponder719]

This is weird. Why even give him another chance after what's transpired? Not to mention, the fanbase already hates him.

To stop him from pitching a fit, refusing to sell, and possibly suing the league, would be my guess.

 

[StreetHawk]

NHL has approved all of LeBlanc, Barroway, and AM as the owners of the Coyotes after Moyes declared bankruptcy. So, they opted to do business with all of these parties vs continue to hold onto the franchise or move them out of AZ.
There is a reason that the Coyotes never attracted a Good Owner to the table. I mean, in 2009/2010, you have a 7 year old Glendale Arena, and a 17/18 year old Footprint arena in the Metro PHX area. And you're either trying to get a 3rd arena built or make Glendale work?

 

[OthmarAgain]

This really is the end of the saga



​

I remember the same sentiment 14 years ago. Parking bond prospectuses and all.

 

[QuizGuy66]

New…. AZ Republic reports Meruelo did meet with Phoenix mayor Kate Gallego



Edit: Just glanced at the article and the meeting has been scheduled for later this month. Mayor’s office had released the letters.

I assume the mayor's office didn't reply because they thought the letters were fakes given that they were not written in all caps.

 

[Brodie]

This is weird. Why even give him another chance after what's transpired? Not to mention, the fanbase already hates him.

It’s just for 5 years and they’re sure he won’t get it done. Just sweeteners to get Smith the team.

The hope is in 5 years he’s gone and they get a new bid along with Houston and or Atlanta

 

[Jetsfan79]

So it's my understanding that the winner of the upcoming auction will be "the best bid" but not necessarily the highest bidder. This has me confused. In traditional auctions, the seller doesn't really care about anything otherthan the highest bidder.

This feels more like a real estate transaction. Like someone selling his house to someone who will also treat his former neibours well even if the selling price may be a bit lower than what others ( who you may not trust rust) are offering.

 

[sneakytitz]

So it's my understanding that the winner of the upcoming auction will be "the best bid" but not necessarily the highest bidder. This has me confused. In traditional auctions, the seller doesn't really care about anything otherthan the highest bidder.

This feels more like a real estate transaction. Like someone selling his house to some who will also teat his former neibours well even if the selling price is a bit lower than what others offering.

Stewardship? The most upfront money doesn't automatically guarantee the most money long term. You'd rather have an arena/entertainment/live work play district for $68.5 million than a strip mall and apartments for $168.5 million. The former is going to create far more jobs and tax revenue.

 

[Jetsfan79]

Stewardship? The most upfront money doesn't automatically guarantee the most money long term. You'd rather have an arena/entertainment/life work play district for $68.5 million than a strip mall and apartments for $168.5 million. The former is going to create far more jobs and tax revenue.

Well thats why it doesn't sound like a black and white auction. If long term projections or what iifs are involved , than it seems more like winning a ROI focused business contract rather than an auction.

 

[sneakytitz]

Well thats why it doesn't sound like a black white auction. If long term projections or what iifs are involved , than it seems more like winning a ROI focused business contract rather than an auction.

You got it! They only get to sell the land once. They'd rather hit it out of the park and take an immediate loss than take a lot of money up front and lose out after.

 

[Tom ServoMST3K]

The only way Quebec will get a franchise is if we have a 2011 Thrashers/Jets situation again where the NHL needs a place with an arena ASAP and cant afford to wait.

I might rank Saskatoon with their brand new nhl-sized rink ahead of Quebec at this point.

This is weird. Why even give him another chance after what's transpired? Not to mention, the fanbase already hates him.

Maybe getting stuff like this is the only reason he agreed to sell?

 

[Jetsfan79]

You got it! They only get to sell the land once. They'd rather hit it out of the park and take an immediate loss than take a lot of money up front and lose out after.

So if more stuff comes out about AM unwillingness to pay his bills , , wouldn't that potentially hurt his bid? Even if he may have the most apparent financial might and vision.? Trusting the buyers seems to be part of the equation here. So not really an auction at all.

 

[No Fun Shogun]

This still won’t be over. The Yotes will move and then we’ll have months and years of topics about if they will build an arena and get a team back again.

 

[sneakytitz]

So if more stuff comes out about AM unwillingness to pay his bills , , wouldn't that potentially hurt his bid? Even if he may have the most apparent financial might and vision.? Trusting the buyers seems to be part of the equation here. So not really an auction at all.

Certainly factors into things, along with the latest news. He may not even win the bid if he's the only one bidding - which may have been a factor in this latest relocation/push. Boy wouldn't have been a black eye if AM won the auction and Arizona said, nah, not you.

 

[joelef]

This still won’t be over. The Yotes will move and then we’ll have months and years of topics about if they will build an arena and get a team back again.

And Canadian fans will find a new team to complain about.

 

[Jetsfan79]

Certainly factors into things, along with the latest news. He may not even win the bid if he's the only one bidding - which may have been a factor in this latest relocation/push. Boy wouldn't have been a black eye if AM won the auction and Arizona said, nah, not you.

I actually was wondering that myself if he was the only bidder. I also wonder how much negotiation could be involved. Like if they said no to his bid unless you make these changes and then there's a back and forth of offers. If so you might as well get the ball rolling now and send out some pleminary proposals for feedback so you know heading in what it would take to win.

Also wondering how they can award an instant winner without time to review the feasibility of the plan.