{coyotes} Glendale releases draft contract on Coyotes deal

Thursday 27 June 2013

{coyotes} Glendale releases draft contract on Coyotes deal

GLENDALE, Ariz. - Glendale would pay the proposed Phoenix Coyotes owners $15 million a year to manage Jobing.com Arena, while the proposed owners would reimburse the city $6.7 million through fees charged to ticket-buyers and other sources, according to highlights of the draft contract, which city officials released Thursday.

The reimbursements would be in addition to the city's collection of sales taxes for admission, concessions and other business for hockey and other events at the arena.

The draft agreement calls for the NHL team to remain as the anchor tenant at the city-owned arena for 15 years, but the proposed team owners could leave if their cumulative losses reach $50 million or for any reason after five years.

Glendale noted the deal would not allow the city a similar out clause.

"The most recent contract proposal was received from the Renaissance group for review by the city of Glendale at approximately 9 p.m. on Wednesday, June 26. The Renaissance group expects the Glendale City Council to vote on the agreement on Tuesday, July 2," the city statement said.

The city noted the agreement remains a draft that is under negotiation.

According to the city, the proposed owners, an investment group called Renaissance Sports & Entertainment, project the following yearly revenue:

Rent — $500,000

Hockey ticket surcharge — $1.5 million

Non-hockey ticket surcharge — $1.7 million

Parking revenue —$2.2 million

Arena naming rights — $670,000

Naming rights for new stage within the arena — $150,000

If the projections fall short, the city would collect $1.2 million based on a $1.50 surcharge on each ticket sold for events at the arena.

In addition, the city would receive limited rent-free use of arena for city sponsored events and community events.

The city has budgeted only $6 million a year for arena management.