The City of Glendale handed $25M to the NHL yesterday, "keeping its promise to cover that much" of the Coyotes’ '10-11 losses, according to David Shoalts of the GLOBE & MAIL. City officials "offered reassurances, after bowing to NHL commissioner Gary Bettman’s demand to cover $25-million in losses or the team would be moved, that a new owner would refund the money to Glendale." But the Coyotes have yet to be sold, and the NHL and Chicago businessman Matthew Hulsizer are "reworking the deal in which he would buy the team" for $170M. One of the "changes in the newest deal will likely be no refund" of Glendale’s $25M (GLOBE & MAIL, 5/4). In Phoenix, Rebekah Sanders notes the "fight over the Coyotes has cost Glendale." In addition to the $25M, public records show the city "has spent $4.27 million on private attorneys and consultants." Glendale over the past two and a half years "has employed six economic and sports-business analysts, five law firms and a lobbyist to work on Coyotes matters" (ARIZONA REPUBLIC, 5/4).
MARKET DYNAMICS: In Toronto, Josh Rubin notes a report being released today by the Conference Board of Canada indicates that the "soaring loonie makes NHL hockey a better bet in Winnipeg and Quebec City than when the Jets and Nordiques left those cities" in the mid '90s. However, that "doesn’t mean new teams would be an automatic success." The report notes that the "small number of corporate headquarters hampers both cities, particularly Quebec, and that the success of a team in Winnipeg would be hurt by the presence of the CFL’s Blue Bombers." Both cities also have "arena problems -- Quebec’s isn’t built yet, and Winnipeg’s holds a relatively-small 15,000." The report "lists four 'pillars' necessary for a city to be a successful NHL market: Population size, income levels, corporate support, and a level playing field with American teams" (TORONTO STAR, 5/4). NHL sources "agreed that selling tickets is the key" to success in Winnipeg. A former team owner said, "When you look at whether or not a team can make it, it comes down to one thing -- do you have a building and can you fill it, particularly the highest-priced seats?" (GLOBE & MAIL, 5/4).
