After months of court cases and public arguments over the City of Glendale cancelling its arena management deal with IceArizona, the two sides appear to have come to an agreement that will be voted on at a special voting meeting of the Glendale City Council 9 a.m. July 24.
“This revised agreement represents a positive outcome for both the city and the Coyotes, said Glendale Acting City Manager, Dick Bowers in a press release. “It also allows us to move forward in a way that keeps an important economic driver in our community. That’s important for business and it’s important to our citizens.”
Coyotes Co-Owner, President and CEO Anthony LeBlanc also praised the deal.
“We have come up with a resolution that works for both sides and is best for the team, our fans, the city, and most importantly, the taxpayers,” said LeBlanc. “Neither side benefits from a long, drawn out legal battle. What’s important is putting this dispute behind us and focusing on growing the Coyotes business, and in turn, further growing revenues for the entire Westgate Entertainment District. This decision will bring much-needed certainty to our fans and sponsors about our near-term future and an end to the uncertainty brought about through this legal action. We know that hockey works in the Valley and we are committed to Arizona for the long-term. We thank Coyotes fans and sponsors for their incredible support throughout this process. They have proven that they are among the most loyal and ardent in the NHL.”
In the new agreement listed on the City of Glendale website, the arena management fee will be lowered from $15 million to $6.5 million annually, still payable in quarterly payments.
Also in the new agreement, the city will give up all naming rights fees; ticket surcharges from both hockey and non-hockey events; all parking revenues, and any fees from the naming of a smaller stage/theatre venue that may be used within the main seating area.
In the original arena management contract, the city attempted to have a five-year “out clause,” but was not allowed to have one in the contract. In the new amendment to the contract, the city may change the arena manager June 30, 2016 if it provides notice “not less than ninety (90) days prior to the effective date of the replacement of the arena manager.”
A termination date of June 30, 2017 is also listed in the new amendment, but it is unclear what that date means.