Glendale To Vote On Contract With New Arena Manager To Replace Coyotes
Download mp3 (1.44 MB)
Glendale is plowing ahead with plans to replace the Arizona Coyotes as manager of Gila River Arena.
The city council will vote Tuesday on a $5.6 million a year contract with AEG Facilities.
The deal would save Glendale nearly $1 million next year, as the city is scheduled to pay the Coyotes about $6.5 million next year.
If it’s approved, AEG Facilities will run the arena for five years, with an option for 10, if both sides agree. Yearly revenue from the arena would be shared. Once AEG Facilities and the city each receive $1.5 million, the rest would be split 75 to 25 percent.
Last summer, Glendale canceled and renegotiated its deal to have the Coyotes run the arena. In the fall, the city took steps to find a new arena manager, but has maintained it does not want to lose the Coyotes.
The parent company of AEG Facilities owns the Los Angeles Kings NHL franchise. When Glendale chose AEG, city officials said they hoped that would help convince the Coyotes to stay in town, and the contract gives AEG Facilities rights to negotiate with the team.
The Coyotes have repeatedly said they’re considering moving to the East Valley or downtown Phoenix. While they wait for a new arena to be built, there have been reports the team would play at Arizona Veterans Memorial Coliseum at the Arizona State Fairgrounds.
Phoenix Mayor Greg Stanton recently said he wants to build an arena downtown for the Coyotes and Suns to share.
EDITOR'S NOTE: This article has been modified to reflect the amount AEG Facilities and the city of Glendale would receive in a revenue sharing agreement.
