Part XV: Phoenix - the battle of evermore (UPD #443ff 14-Dec agenda/lease links)
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kdb209
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- Jan 26, 2005
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From the Fact Sheet it looks like the city (not a CFD) is paying the Coyotes $100M to purchase the parking rights - I assume this will be done by issuing bonds - and paying for it through parking charges (and advertising and naming rights).
Yes - for only $1000 you can have a parking spot named after you!!!
In addition Glendale will take over responsibility for arena operations - at a cost of $17M/yr.
MH has the option to purchase the Arena in 5 years.
OthmarAmmann
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pucka lucka
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OthmarAmmann
Omnishambles
Didn't see that. That's worth a bit over $250 mm over 30 years (at 5%).
The option to buy the arena is probably worth a couple million, so it looks like they got taken for about $400 mm or so.
pucka lucka
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Since when didn't they own the parking? Wasn't there a surcharge to the team per ticket sold? This is funky ****.
It looks like all they did, is find some thinly veiled excuses to cough up a ton of money without playing with their "existing revenue streams" in an attempt avoid the gift clause. IANAL, but this seems like a stretch.
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Killion
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- Feb 19, 2010
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Havent read the entire tome but initial observations;
1) COG assumes mgmnt of arena & parking, receives all revenues for latter AND advertising (rinkboards, naming rights etc) revenues. Costs city app. $17M per annum, off-set by said revenue streams.
2) No "out" or "relocation" clause.
3) $100M paid to Hulsizer for said rights.
So. He doesnt control the arena. Receives nothing from parking, concerts, concessions. He cant get out of the lease & relo in 5-7yrs. He has the option to buy the building in 5. The COG is handing him a cheque for $100M. Is that about right?...
1) COG assumes mgmnt of arena & parking, receives all revenues for latter AND advertising (rinkboards, naming rights etc) revenues. Costs city app. $17M per annum, off-set by said revenue streams.
2) No "out" or "relocation" clause.
3) $100M paid to Hulsizer for said rights.
So. He doesnt control the arena. Receives nothing from parking, concerts, concessions. He cant get out of the lease & relo in 5-7yrs. He has the option to buy the building in 5. The COG is handing him a cheque for $100M. Is that about right?...
pucka lucka
Registered User
How in hell can CoG expect anyone to believe that the Coyotes remaining in Glendale to be worth this much?
Havent read the entire tome but initial observations;
1) COG assumes mgmnt of arena & parking, receives all revenues for latter AND advertising (rinkboards, naming rights etc) revenues. Costs city app. $17M per annum, off-set by said revenue streams.
2) No "out" or "relocation" clause.
3) $100M paid to Hulsizer for said rights.
So. He doesnt control the arena. Receives nothing from parking, concerts, concessions. He cant get out of the lease & relo in 5-7yrs. He has the option to buy the building in 5. The COG is handing him a cheque for $100M. Is that about it?...
As he said, he is just writing a check.
they dont have to it was decided in court they were worth 510 million to the COG
page 2
pucka lucka
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Havent read the entire tome but initial observations;
1) COG assumes mgmnt of arena & parking, receives all revenues for latter AND advertising (rinkboards, naming rights etc) revenues. Costs city app. $17M per annum, off-set by said revenue streams.
2) No "out" or "relocation" clause.
3) $100M paid to Hulsizer for said rights.
So. He doesnt control the arena. Receives nothing from parking, concerts, concessions. He cant get out of the lease & relo in 5-7yrs. He has the option to buy the building in 5. The COG is handing him a cheque for $100M. Is that about right?...
Some wacky stuff for sure. I wonder if this ever becomes a case study in ineptitude in the University of Phoenix online MBA program.
OthmarAmmann
Omnishambles
Havent read the entire tome but initial observations;
1) COG assumes mgmnt of arena & parking, receives all revenues for latter AND advertising (rinkboards, naming rights etc) revenues. Costs city app. $17M per annum, off-set by said revenue streams.
2) No "out" or "relocation" clause.
3) $100M paid to Hulsizer for said rights.
So. He doesnt control the arena. Receives nothing from parking, concerts, concessions. He cant get out of the lease & relo in 5-7yrs. He has the option to buy the building in 5. The COG is handing him a cheque for $100M. Is that about right?...
There's also the fiscal emergency they're going to declare.
RR
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pucka lucka
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because the team will be stable with this deal, in a market they want to be in.
ATHF
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- Jan 13, 2010
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The NHL is lucky that the mainstream media barely cares about covering this kind of thing because forcing a failing city to pay out hundreds of millions of dollars to prop up a failing hockey team is an embarrassment no matter what market it's in.
It looks like the NHL and Hulsizer are going to try their damnedest to bankrupt that city.....
It looks like the NHL and Hulsizer are going to try their damnedest to bankrupt that city.....
OthmarAmmann
Omnishambles
It's a rough estimate. $100 that they're going to pay immediately + present value of 30 annual payments of $17 mm + option
I didn't realize that there were revenue offsets, so obviously that will decrease that piece. They might be off the hook anyway in five years when they hand the arena to MH, but obviously that would only be the case if the arena mgmt is actually profitable. CoG has all the downside there.
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