SBD/May 28, 2014/Franchises

Returns From Glendale-Coyotes Deal Coming Up Short Due To Lack Of Non-Hockey Events

Glendale will recoup $2.2M less than expected this year from the Coyotes
In the first year of a 15-year deal between Glendale and the Coyotes, the "money is coming up short, adding yet another expense for a city dogged by sports-related debt," according to Caitlin McGlade of the ARIZONA REPUBLIC. As part of the $225M agreement, which was "signed by city leaders and the owner of the Coyotes in July to keep the team in town, Glendale expected to recoup" $6.8M this year from sources that "include ticket sales, parking receipts and naming rights" for Jobing.com Arena. But "too few non-hockey events" and "lackluster revenue from parking means the city likely will get" just $4.4M. Two City Council members already are "calling to renegotiate the agreement with Coyotes owner IceArizona." The city is "expecting to recoup" roughly $7.3M next year. The council "expected to collect revenue from 23 non-hockey events based on prior years, but the city will only collect revenue from eight this year under the new agreement." However, the city's low return is "not an indication of weak fan support for the Coyotes." Despite increased ticket prices and new parking fees, average attendance at games "was 13,776, up by more than 1,300 more fans from its last full season." The team also had seven sellouts and "even broke the single-game record for revenue three times." But the "dearth of non-hockey events meant that, overall, the city has collected" about $1.4M less in ticket surcharges than was expected (ARIZONA REPUBLIC, 5/28).
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