The City of Glendale has decided to keep the Phoenix Coyotes by ratified an arena lease agreement with a prospective owner of the franchise with a vote of 4-3.

The Renaissance Sports & Entertainment Group will take over the ownership of the Coyotes from the NHL after four contentious years in which the NHL ran the team, while looking for a new owner. The City of Glendale will pay RSE $15 million per season but RSE said that they will reimburse the city up to $9 million per season after five years if the team relocates. It also appears that the Coyotes will be now known as the Arizona Coyotes.
“Everybody who’s followed this saga has said decide something or just shoot us,” Coyotes general manager Don Maloney said. “Fortunately, we got the result we needed to stay in a great place and a great hockey town.”
Key points to the deal:
  • The city had asked for the clause to match a provision that allows RSE to relocate the team after five years or if it accrues $50 million in losses.
  • Glendale budgeted $6 million to operate the arena, but RSE projected between $8.5 and $11 million in revenue from arena naming rights, parking, rent, ticket surcharges and other streams to make up the difference
  • RSE added a provision in the deal that called for it to pay the difference if revenues don’t cover the $6 million the city has budgeted to run the arena.
  • RSE’s partnership with Global Spectrum might have been the turning point.
  • RSE has projected $8.5 million to $11 million in revenue to Glendale, which budgeted $6 million to manage Jobing.com Arena.
  • Bringing in Global Spectrum would likely increase the number of non-hockey event dates at the arena and LeBlanc called the partnership the final piece of the deal.

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