Three years after agreeing to pay the National Hockey League $50 million in order for the team to remain in Glendale while the league ran the team, the city deposited $5 million deposit into an escrow account as the final payment was made Sept. 20.
The Coyotes were placed into bankruptcy in 2009, after former owner Jerry Moyes filed for protection after a failed attempt to sell the team. The NHL purchased the team out of bankruptcy court and ran the team for two seasons.
Council held a special meeting Sept. 20, but went directly into executive session for, “consideration and possible action regarding final escrow payment to the (NHL).”
While the league cannot withdraw the money from the account until Sept. 2017, Duensing said, “any and all accrued interest belongs to the city,” but he wasn’t sure the amount of interest that would be accrued on the escrow account.
Duensing said the interest, which had been approximately $7,500 since fiscal year 2011-12 through FY 15-16, is payable to the city.
“The ability for the NHL to withdraw the final $5 million one year after the city deposit and the fact that any interest goes to the city is simply part of the Sept. 20, 2013 escrow agreement,” Duensing said. “If the payment were made directly to the NHL, there would be no deposit made to the escrow, and therefore, no interest earned and paid back to the city.”
“This final payment had no impact on the adopted budget as it was already appropriated,” Duensing said. “This payment was also referenced and planned for in the last three, Five-Year Financial Forecast presentations which were Dec. 17, 2013; Dec. 16, 2014; and Dec. 15, 2015.”
While the original payments to the NHL caused the city to remove money from the Water and Sewer fund ($15 million) and general fund ($5 million) the money has been paid back to both funds since fiscal year 2012-13, years after council directed the city to do so.
“Annual transfers from the general fund back to the water and sewer fund have been made since FY12-13 and will continue to be made per council direction,” Duensing said.
IceArizona purchased the team from the NHL in 2013, but the sale was contingent upon a lease agreement with the city to run then Jobing.com Arena (now Gila River Arena). After two years of the city paying IceArizona $15 million to manage the arena, the city cancelled the contract, claiming, “it was entitled to terminate the agreement because two former city employees, Craig Tindall and Julie Frisoni, were involved in securing the deal and later worked for the Coyotes.”
On July 23, 2015, it was announced the Coyotes and Glendale City Council had agreed on a resolution announcing they had agreed to a two-year deal for IceArizona to manage the arena for only $6.5 million per year.
RS&E purchased the team for an announced sale price of $170 million, putting down $45 million provided by RS&E, received a loan of $120 million from the Fortress Investment Group (which was repaid by the arena management fee Glendale paid the team to run the arena), and an additional $85 million loan from the NHL.
RS & E acheté l'équipe pour un prix de vente annoncé de 170 M $, en mettant 45 M $ fourni par RS & E, un prêt de 120 millions $ du groupe Fortress Investment (qui a été remboursé par les frais de gestion de l'aréna de Glendale ) et un prêt de la LNH supplémentaire de 85 millions $.
IceArizona managed the Coyotes and the arena before the city cancelled the contract and has been talking about leaving Gila River Arena for nearly a year with no announcement, after telling fans that they would make one by the end of last season.
IceArizona a géré les Coyotes et l'aréna avant que la ville annule le contrat
“This final payment satisfies the original agreement between the City and the NHL,” Duensing said. “No additional city payments are due under this agreement.”
AEG took over management of Gila River Arena this year, after agreeing to a contract with the City of Glendale.
Commentaires
La rumeur veut que si la ville n'avait pas plié au chantage de Bettman l'équipe soit relocalisée ... Il semble selon ce journaliste que c'était plus qu'une rumeur ... cependant je ne crois pas que Hamilton était la ville visée... Maintenant que l'entente n'est plus valable avec Glendale ... nous verrons ... Je ne crois pas que les Coyotes vont déménagé dans l'est ! mais .... En cette journée anniversaire de la marche bleue ( 6 ans ) , qui en passant na rien changé nous n'avons toujours pas d'équipe !