The City of Glendale released a copy of the arena lease management proposal of Jobing.com Arena with the Renaissance Sports and Entertainment group on their website on Thursday afternoon.
Coyotes sale: Glendale releases arena lease proposal
The Phoenix Coyotes prospective sale continues as the City of Glendale has released the lease management proposal for Jobing.com Arena.
The proposal includes a 15-year agreement with the prospective ownership group, which will pay the group an annual sum of $15 million over that time to run the arena. In addition, the city is willing to contribute money to the group's effort to purchase the Phoenix Coyotes from the NHL. However, Glendale does not want to pay the entirety of the $15 million total and previous reports have indicated that RSE is willing to help the city develop shared revenue streams to offset the cost.
The lease agreement also includes an out-clause after five years, which would allow the group to relocate the team if losses surpass $50 million. The Coyotes have lost an annual average of $20 million per season over the last few years, according to Mike Sunnucks of the Phoenix Business Journal.
According to Sunnucks, the City of Glendale has apprehensions about completing the proposal. Those concerns are rooted in the July 2 deadline to complete the $225 million purchase of the team and the guarenteeing of the $15 million fee prior to the creation of the revenue streams.
In addition, past reports have indicated that the city believes the Coyotes will continue to lose money over the years. If this is the case, it would allow for the team to be relocated. From a speculative perspective, it doesn’t seem like the city would be interested in investing such a sizable sum of money only to have the team move five-years from now.
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