Jobing.com Arena Operating Costs Significantly Lower Than What Glendale Paid NHL
The "true cost to operate Jobing.com Arena ranges" from $5.1-5.5M per year, which is about $10-20M a year "less than the Glendale City Council has agreed to pay hockey-related interests to manage the facility in recent years," according to Paul Giblin of the ARIZONA REPUBLIC. The net management costs are "bundled in the city’s solicitation for a new company to operate the city-owned arena," and the "question is whether an outside company can do it for less than what the city has agreed to pay hockey-related interests in recent years." Potential Coyotes Owner Renaissance Sports & Entertainment principal Anthony LeBlanc said that he would "need a management deal similar to the one offered in the past," which would have the city pay an average of $15M a year. The current draft budget "pencils in the arena-management payment" at $6M per year, and the fee remains $6M a year "throughout the city’s five-year budget forecast." The figure "stands in stark contrast to the far more lucrative amounts the council has been willing to pay in recent years." The council "paid the NHL" $25M a year in both '11 and '12 to run the arena. It also "agreed to pay" former Coyotes bidder Greg Jamison an average of $15M a year for 20 years to manage the arena. Glendale Mayor Jerry Weiers said that he is "concerned that the city will have to offer the next management firm considerably more" than $6M a year to operate and maintain the arena. Weiers said, “As the years go by, there are repairs that have to be made. I think the money hasn’t been put back into the arena the way it should be" (ARIZONA REPUBLIC, 5/6).