Someday there’s going to be entire college programs built around the situation in Glendale. It’s got everything, at every level - local politics, major sports interests, shadow corporations, international financiers, kickbacks, etc.
Right now there’s a city council meeting that might (or, might not, since it’s Glendale) determine the future of the 'Yotes. Bettman is even in attendance.
The deal they’re voting on is a race to see who can lose $50 million first. The RSE group - who want to “manage” Jobing.com arena - are bank-rolled by Fortress, a group of Canadian investors. They are almost guaranteeing the failure of the Coyotes in 5 years - by loading all the risk onto the city of Glendale with a horrible contract (and 9% interest on some loans) - so when Glendale goes bankrupt they’ll be able to move the team and make up their loses (and then some) off the relocation fee.
Glendale, meanwhile, is going to lose $50 million… and get nothing out of it. Besides bankruptcy. The most they can afford is $6 mil a year for an arena manager and RSE is asking for $15 mil and, so far, nobody knows where that extra money is coming from. The best guess is that they are going to “pawn” the City Hall or close some fire stations… because when are there ever fires in Arizona?
Oh, right…
And Glendale managed to slip in some amendments to the proposal to make it slightly more palatable for them - including an out-clause, which would mean they could pull the plug if the loses got too catastrophic - but this was a non-starter for RSE/Fortress, as there’s no way to guarantee their revenue stream from Glendale if they have a way to say “mercy.”
Oh, and even though Glendale will still own the arena, any insurance claims - natural disasters, fires, that kind of thing - will be paid out to RSE. Seriously.
Oh, when Glendale files for bankruptcy, it’s considered a breach of contract and they’ll be on the hook for the $225 million contract plus some penalties.
What the fuck could possibly go wrong?
Not to mention that one of the largest arena managing corporations in the world offered Glendale 100 guaranteed events for $6 mil a year, compared to RSE’s 41 events for $15 mil. Everyone that’s concerned that Westgate would dry up without the Coyotes don’t realize that they’re worse off (less events a year = less revenue generated at the shopping center).
…
So this culminates in one of the most epic city council meetings ever. Some of the council members have obviously been paid off and anyone with any facts/common sense are not being appreciated. And idiot Coyotes fans in attendance who probably don’t even live in Glendale are showing their love for Bettman, while some are even wearing knock-off jerseys - way to support the team!
And as of now it looks like they’re about to pass it and be on the hook for $15 million a year for $15 years when they literally can’t go over $6 million without dipping into the essential services like police, firefighters, trash pickup, water utilities…
This is one of the greatest worst examples of a sports team destroying a town ever. Ever ever ever.
Well done Bettman!