After meeting with reps of Ice Edge today, NHL officials will meet with the folks from Glendale to discuss Jobing.com Arena issues — but it's not clear what the NHL wants to accomplish.
After meeting with reps of Ice Edge today, NHL officials will meet with the folks from Glendale to discuss Jobing.com Arena issues — but it's not clear what the NHL wants to accomplish.
After winning control of the Phoenix Coyotes in bankruptcy court, the NHL is facing the same issues Jerry Moyes did: running a hockey team in the middle of the desert. Moyes said it was an impossible task, but the NHL doesn't agree, saying a winning record would do wonders for bringing back crowds. Now, we all know that winning alone is not going to bring back the fans on a long-term basis and certainly is no guarantee the team will turn a profit.
Still, the consensus seems to be a better arena deal would help. But here's the situation: Glendale is a financially strapped city these days and depends on revenues from the Coyotes lease to service debt on the arena. Any reduction in rent would mean taxpayers would need to step up on the debt-servicing front. But the city has no money and has been drastically curtailing services and laying off employees. An earlier proposal by Jerry Reinsdorf to basically turn the lease on its head — essentially paying the team to play at the arena — was a nonstarter with Glendale officials.
If the NHL can work out a better lease, then the value of the team is heightened, and conceivably the NHL could turn a profit. But it's not clear whether Monday's meeting will lead to any lease renegotiations.
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