City of Glendale releases Coyotes proposal to the public, cites ‘unresolved serious concerns’
A lot has been happening behind closed doors as the City of Glendale, the NHL, and Renaissance Sports and Entertainment (RSE), the prospective owners of the Phoenix Coyotes, attempt to hammer out a deal to keep the team in town.
On Thursday, the City published the details of the proposal.
The deal would see the Coyotes remain the "anchor tenant" at Jobing.com Arena for the next 15 years, with the city paying $15 million a year to help run the building, although that payment would be somewhat reduced by revenue and rent. From Phoenix Business Journal:
The city does not want to pay the $15 million so to offset that financial bite Renaissance proposed $6.7 million worth of revenue sharing and rent payments each year. That would put the city price tag at $8.3 million per year.
The deal includes a five-year out-clause that would allow RSE to terminate the lease and possibly move the team if financial losses total more than $50 million in that time frame.
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The release also cites some "serious unresolved concerns", such as the risk Glendale isassuming by signing a deal that allows RSE to terminate after five years but doesn't allow the city to terminate for its 15-year duration. In addition, they believe the timeframe for approving this deal is very tight.
But wait! There's more. From Brahm Reznik of AZ Central:
But here’s the other side – something Glendale did not release: A sharply worded letter Wednesday from RSE’s attorney to Bowers, expressing surprise at a last-minute demand that RSE provide an “absolute guaranty” against Glendale’s potential losses.
The deal points include RSE’s counter-proposal of a limited guarantee.
So less than a week from the assumed deadline for a deal between Glendale and RSE, the sides appear to be far apart, RSE clearly does not believe Glendale is bargaining in good faith, and Glendale has so far balked at putting the deal on the council agenda.
Good faith negotiating in question? A proposal released to the public? It's like we're back in the halcyon days of the NHL lockout!
Glendale City Council will be discussing the deal in a closed session Friday.
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