The City of Glendale late last night announced that its City Council will hold a special meeting today at 6:00pm PT to "cancel the professional management services and arena lease agreement between the City of Glendale and IceArizona," which purchased the Coyotes in '13 and now own 49% of the team. The city entered into a 15-year agreement with the holding company in '13, in which it pays $15M per year in exchange for a share of its arena revenue, and also kept the Coyotes in that arena for at least five years (Ian Thomas, Staff Writer). In Phoenix, Peter Corbett in a front-page piece notes "shortfalls in revenue sharing cost the city" $8.1M in its last fiscal year, and Glendale "expects to lose" up to $8.7M on the arena this fiscal year. Glendale called the special meeting just hours after Coyotes President & CEO Anthony LeBlanc met with reporters, saying that the team is "in full compliance with the terms of the agreement." The city asked if the Coyotes "would be willing to renegotiate the contract." But LeBlanc said, "That's not going to happen." Coyotes attorney Nick Wood said, "This is a blatant attempt to renege on a valid contract that was negotiated fairly and in good faith and in compliance with all laws and procedures." Corbett notes it is "not clear which council members would vote to keep or sever the agreement." Glendale Mayor Jerry Weiers has "not been a supporter of the contract, and the new council members came on board after the agreement was approved nearly two years ago in front of a packed council chamber of Coyotes fans, other supporters and opponents of the deal" (ARIZONA REPUBLIC, 6/10).
CAP HALF FULL? In Phoenix, Sarah McLellan notes the Coyotes last season spent approximately $56M in player salary, and with the salary cap floor for '15-16 expected to be $53-54M, the Coyotes will "certainly spend more than the minimum while also having the ability to have conversations if there's an incentive to go beyond the parameters that have already been set" for GM Don Maloney. McLellan: "Clearly, though, the Coyotes won't be among the highest spenders and are likely to remain near the bottom of the pecking order." Maloney said of the Flames and Senators making the playoffs this year, "Calgary wasn't a cap team and Ottawa wasn't a cap team" (
ARIZONA REPUBLIC, 6/10).
