ASM Global, previously managing Desert Diamond Arena on behalf of Glendale, will be leasing the former home of the Arizona Coyotes with an option to buy.
ASM Global has operated Desert Diamond Arena since July 1, 2016, after the city’s relationship with the Coyotes soured. Since then city officials have hailed the relationship as a success since severing the NHL team’s lease: according to a Jan. 10 report from City Manager Kevin Phelps to the city, gross receipts for the arena in 2022 were up $10 million over the previous year. (Keep in mind 2021 was a year still heavily impacted by COVID.) When the city ended its relationship with the Coyotes, the financial plan was to forgo the regular income from NHL hockey and generate more big-event revenue with concerts and events.
The city and ASM Global announced the arena upgrades a year ago, so that’s not news, though at the Glendale City Council meeting last night it was revealed the city would pay $25 million toward arena renovations, and ASM Global paying $15 million. The news comes in the form of the lease-purchase plan. ASM Global will lease the arena for 20 years, committing to four payments totally $33.29 million. The management firm then will have an option to buy the arena for $10. As part of the lease ASM Global will assume additional capital and maintenance expenditures.
“This agreement demonstrates that ASM Global, an internationally recognized leader in arena and venue management, is aligned with our belief about the tremendous future for our ever-expanding Sports and Entertainment District,” Phelps said via press release. “Much of our recent success here in Glendale is that we have positioned ourselves together with high-impact, respected partners like ASM Global. It has an unparalleled international portfolio, including the most prestigious, iconic and successful venues. We look forward to seeing just how far this relationship will elevate and build on our goal to be recognized as one of the top sports and entertainment districts in the U.S.”
“We passionately believe in Glendale and Desert Diamond’s potential to live up to its name as a diamond in the entertainment sphere,” ASM Global’s President and CEO Ron Bension said via press release. “The area’s track record of hosting spectacular events—like the Super Bowl—can grow even more to enrich the community. We’re looking forward to further leverage our worldwide expertise in this market.”
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