Arizona Coyotes and City of Glendale come to a resolution
GLENDALE, Ariz. – After many late night meetings, and back and forth chatter, the Arizona Coyotes and the City of Glendale have finally come together, put their differences aside and come to a resolution on their legal standoff.
The Glendale City Council is planning on meeting at 9:00 a.m. on Friday, July 24, with some new business.
They’ll be voting on four amendments:
- Discussion and possible action to rescind the June 10, 2015 decision that directed the City Manager and the City Attorney to cancel the professional management services and arena lease agreement between the City of Glendale and IceArizona Manager Co., LLC and IceArizona Hockey Co., LLC.
- Resolve and settle all interests in the operating reserve account between the City of Glendale, IceArizona Hockey Co., LLC, IceArizona Manager Co., LLC and David Reaves, Chapter 7 trustee of Arena Management Group, LLC.
- Settlement of all claims between the City of Glendale, IceArizona Manager Co., LLC and IceArizona Hockey Co., LLC.
- First amendment to the professional management services and arena lease agreement with IceArizona Manager Co., LLC and IceArizona Hockey Co., LLC.
If the City Council says yes to the amendments, then the Coyotes and the City of Glendale will reach a settlement, which will keep the Coyotes at Gila River Arena at least for the next two seasons.
According to the terms of the deal, Arizona will receive all hockey-related revenue that used to go to the City of Glendale, which includes a portion of naming rights, ticket surcharges and parking revenue. The City of Glendale will pay $6.5 million per year, in quarterly installments, to the Coyotes to manage the arena. The out-clause that was in the original 15-year, $225 million deal the two parties struck, has been removed.
The Coyotes and the City of Glendale are both ecstatic that this resolution has finally come about.
“This revised agreement represents a positive outcome for both the city and the Coyotes,” said Dick Bowers, Glendale Acting City Manager. “It also allows us to move forward in a way that keeps an important economic driver in our community. That’s important for business and it’s important to our citizens.”
“We have come up with a resolution that works for both sides and is best for the team, our fans, the city and most importantly the taxpayers,” Coyotes Co-Owner, President and CEO Anthony LeBlanc said. “Neither side benefits from a long, drawn out legal battle. What’s important is putting this dispute behind us and focusing on growing the Coyotes business and in turn, further growing revenues for the entire Westgate Entertainment District. This decision will bring much-needed certainty to our fans and sponsors about our near-term future and an end to the uncertainty brought about through this legal action. We know that hockey works in the Valley and we are committed to Arizona for the long-term. We thank Coyotes fans and sponsors for their incredible support throughout this process. They have proven that they are among the most loyal and ardent in the NHL.”
Both sides will hold any further comments until after the City Council’s meeting.