The Coyotes on Friday "opened up their books to the City of Glendale," reporting losses from FY '14 as approximately $34.8M, "but the actual loss from operating the franchise from the first year of IceArizona's ownership was lower than anticipated," according to Sarah McLellan of the ARIZONA REPUBLIC. Coyotes President & CEO Anthony LeBlanc said that the actual loss came in at about $16.5M, which "was a pleasant surprise for the ownership group since it expected its first-year hit" to be at $20M. But it is the loss released to Glendale "that counts toward the out-clause" included in the 15-year, $225M agreement between the city and the Coyotes. The out-clause "can be exercised should losses reach" $50M after five years. LeBlanc: "(The out-clause) is absolutely something, I can't say more emphatically, we have not even talked about." The $34.8M figure "includes two one-time charges." The Coyotes "had to account for the closing costs of purchasing the franchise (the bulk of which were legal fees)," which amounted to around $7.9M. The team also "had to factor in the buyout" of now-Predators C Mike Ribeiro for around $10.5M. The Coyotes "are focusing on" the $16.5M total loss "from running the franchise." Although LeBlanc "wouldn't give an update on the team's status for the current fiscal year, he said the team is expecting to lose money but that it will be 'substantially lower' than the losses suffered" in FY '14. LeBlanc: "Do we expect to achieve profitably? Yes. The time frame is still a little murky, but I think it's still fair to say that's our goal. That's our expectation." The prospect of profitability "is one of the reasons why LeBlanc considers the out-clause a non-factor" (ARIZONA REPUBLIC, 3/14).
EVENT PLANNING: In Phoenix, Peter Corbett reported the Coyotes "are hoping to bring college hockey to Glendale's Gila River Arena as part of an effort to attract more events and family-oriented shows to the city-owned arena and increase revenue for Glendale and the team." LeBlanc said that the Coyotes have "discussed" hosting Arizona State's games when the team moves to D-I play next season. ASU VP/Athletics Ray Anderson said that the hockey program "plans to continue playing at Oceanside Arena in Tempe but will consider moving some of its bigger games to Gila River Arena." Corbett noted Glendale was more than $1M short "of expected arena revenue in the last fiscal year largely because concert and parking revenue did not meet the city's projections." The city pays the Coyotes a $15M annual arena management fee, and the team "contracted with Global Spectrum to book shows and manage the facility." The number of shows "has doubled to 14 this fiscal year and the arena will host Taylor Swift, Sam Smith and Madonna later this year." Total arena revenue through January was $3.5M, and the city is "expecting to receive" another $3.3M "by the end of the fiscal year June 30." Glendale is spending $15M "for the arena management fee and another $500,000 for capital improvements this fiscal year" (ARIZONA REPUBLIC, 3/13).
