The Arizona Coyotes (NHL) are behind on Gila River Arena rent payments to arena manager ASM–which in turn is delaying ASM’s revenue-sharing payment to the city of Glendale.
It’s one in a series of financial issues facility the city regarding Gila River Arena, some dating back to the original decision by the city to build the arena. The city is on the hook for some $13 million in annual debt payments and an annual management fee of $5.6 million to ASM. Under the current Gila River Arena financial setup, the Coyotes pay $500,000 plus some other fees to ASM for rent; part of that rent is then passed along to the city. But with the Coyotes not paying rent, ASM is not paying the city. Now, technically, the payment to ASM is late, but the payment from ASM to the city is not: ASM has until the end of October to make the city payment. (Yes, there’s nothing simple about the financial system governing Gila River Arena rent.) From the Arizona Republic:
“A representative of ASM has informed us that the team has an outstanding balance that was due to ASM by June 30, 2020 but has not been paid,” Glendale City Manager Kevin Phelps said in a statement provided to The Arizona Republic. “ASM has communicated that they are working closely with the team to settle the accounts for the 2019-2020 NHL season.”
Phelps added that city officials have “been assured by ASM that they will make their payment by that contractual deadline.”
City officials already expected to see a decline in revenues as the COVID-19 pandemic canceled the regular hockey season, concerts and other events planned for Gila River Arena. The arena brought in about $1.9 million in revenue last fiscal year and is projected to bring in less this year at nearly $1.3 million, according to city projections. The city would get half of that, or about $640,000, a document shows.
Neither ASM nor the Coyotes commented on the situation.
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