Glendale Officials On Coyote Arena Letter: Disappointed Is An Understatement

By Casey Kuhn, Matthew Casey
Published: Wednesday, March 8, 2017 - 5:09pm
Updated: Wednesday, March 8, 2017 - 6:54pm
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The NHL commissioner sent a letter to state officials in support of a bill that would help the Arizona Coyotes move out of Glendale and into a new arena. 

In the letter, Commissioner Gary Bettman says the Coyotes are losing money, and cannot and will not stay in Glendale.

“It would be an understatement to say we’re disappointed in the letter,” Glendale City Manager Kevin Phelps said.

He said the city met with team officials last week for the first time since he began reaching out to them in May.

Phelps says the city is not to blame for the economic loss, but rather it’s the state of the team that’s hurting the Coyotes.

“It really is about the quality of the product," Phelps said. "You can’t go year after year after year not making the playoffs, and then turn around and blame us because of the lease.”

Bettman sent the letter to the Legislature this week, supporting a bill to help the Coyotes get a new arena in the Valley.

The commissioner says because the franchise is losing money at Gila River Arena, the Coyotes cannot remain in Glendale.

But ownership’s claims do not line up with a recent analysis by Forbes magazine.

Forbes publishes an annual report listing NHL franchises by their overall value. The Coyotes ranked near the bottom last year. And the magazine said the club’s operating income was $8 million in the red.

The Coyotes’ owner says losses are actually in the tens of millions, which is why the team wants out of Glendale.

Neil deMause is co-author of the book “Field of Schemes,” which criticizes using public money to build pro sports venues. He says there are lots of ways to calculate operating income.

"We’ve seen on occasion when numbers actually get leaked. In terms of operating expenses and income, the Forbes numbers are usually pretty on-target," deMause said.

Glendale officials say they think the Coyotes’ claim is accurate. Team officials declined to elaborate on the owner’s statement.

Phelps said the city does want to be partners with the Coyotes.

“We’ve been really quiet up to this point because we’re still committed to working with the team and to helping them increase fan enthusiasm," he said. "But when they start blaming their condition on us and them not taking responsibility or ownership of their predicament, I think we felt we had to stand up for the citizens of Glendale.”

The bill supported by the commissioner would create a special tax district to help fund a new arena with taxpayer money. Glendale still pays millions of dollars a year in interest payments and to manage the arena.