May 12, 2010
J-E-T-S. Jets, Jets, Je—-Not so fast.
Sorry Winnipeg, but you’re going to have to wait even longer to see professional hockey return to your city. The Glendale city council voted to pony up the $25 million dollars necessary to keep the beloved Phoenix Coyotes in Phoenix. That is, if the money is needed in the first place.
But city manager Ed Beasley and NHL deputy commissioner Bill Daly both told the council that the sale of the Coyotes is still expected to close by the end of June and the payments may never be needed.
Beasley also said that both Ice Edge Holdings and a group headed by Chicago sports mogul Jerry Reinsdorf are still talking about buying the Phoenix Coyotes. Reports have had Reinsdorf’s group dropping out in recent days. (via Houston Chronicle)
The unanimous council vote allows Mr. Beasley to begin to make plans to cover the Coyotes expected $25M operating loss in the 2010-2011 season. What does that entail exactly? Something not yet seen in the sports world; taxpayers not just paying for a stadium, but directly paying for the teams operating losses. (note: its been said that any revenue generated would not come from public dollars, and that this revenue may be generated through things like ticket surcharges)
So, what can save the taxpayers? New ownership. The NHL currently owns the club, and while they did agree to cover the Coyotes operating losses after the 2009-2010 season when they bought the team in bankruptcy court last September, it was agreed that the city would have to cover the future losses. New owners would obviously handle any operating losses in 2010-2011, which would hopefully keep the citizens of Glendale from paying the various increased fees.
By the way, the franchise hasn’t turned a profit since moving to Arizona in 1996.
So what does this all mean in the grand scheme of things? Hockey will stay in Phoenix for the time being, and will continue to operate at a loss and with decreased attendance. Meanwhile, the roughly 700,000 people that live in Winnipeg will continue to clamor for a hockey team…but to no avail.
It almost doesn’t seem fair.
…and maybe, more importantly, it almost doesn’t make sense.
2 comments
What I don’t understand is how Gary Bettman can even remotely think this is a good idea? His interview was useless on Hockey Night in Canada last night.
Why have the tax payers pay for the operating expenses? That makes no sense because he is NOT willing to move to a location which can be profitable? He put hockey where it does not belong and is NOT man enough to admit he made a mistake. Now the NHL owns the team and the tax payers are paying for it.
How does he keep his job? This is a business nightmare.
I agree the interview on CBC HNIC last night was classic MacClean vs Bettman episode, although MacClean laid off the gas a bit. What really irks me, is the constant defending Bettman is doing for teams in as they say “the rust belt”. Bettman continues to think that operating teams in a market that obvisouly want or need them. All the areas where he is trying are viable markets for other major league teams(MLB,NBA,NFL). And on the flip side I can see the reasoning behind trying, but if you want the game (NHL) to grow you need to put teams in the places where people want them. And Im not just saying let’s pack up and move them, but if you are operating a team that has been a constant burden to the league(hasn’t turned a profit since 1996, when they moved to Phoenix) . I understand that many teams operate with in the red, and it is a constant battle, when you have teams that are continually adding to the negative bottom line. ie Phoenix, Florida, Tampa, Nashville, and more recently St Louis and Carolina. Basically we need to restructure the league to the the areas that will continue to grow, and will have the fans to back the teams, which in turn will add to the competiveness. Areas that have deserved a closer look or even awarded a team are Southern Ontario(Hamilton, Quebec City, Winnipeg, and maybe down the road Halifax or Seattle) In closing all I know for certain is we need to get rid of Bettman, and bring in someone(Ron MacClean) you actually cares about the game and it’s longevity in the markets that deserve the attention.