Greg Jamison's attempt to purchase the Phoenix Coyotes could possibly be in trouble on multiple fronts.
Today, the Goldwater Institute says they plan to block a vote on the new lease for the Coyotes. They believe the city of Glendale, where the arena is located, "violated Open Meetings Law by not disclosing the entire lease agreement in a timely fashion." The Goldwater Institute plans to file suit in court Friday morning to block a vote on the lease.
The Arizona Republic hashes out the details and wonders if it's a good deal for the struggling city of Glendale. The article reports that the city will fork out $325 million dollars to potential owner Greg Jamison to run, maintain, and help renovate Jobing.com arena. (I guess that potentially $200 million dollars the city of Seattle and King County will front and should get back, doesn't sound like a bad deal after all) Also the city will see a return of $115 million. So they'll lose $210 million over the 20 year lease. That means $45 of every person's taxes a year will be needed to make it work.
AZCentral.com writes that if this is challenged in court, it'll be laughed out of court. They write that past proposals to help private industries and employee unions couldn't get any substantial public money. Because it violated the state's constitution. One group wanted $100 million to build a shopping mall to benefit the public. It didn't work. So AZCentral's Lauren Roberts believes $325 million for Greg Jamison's cause will not fly.
Wednesday, Forbes writer Mike Ozanian questioned whether Jamison's investors were getting cold feet, too. Ozanian writes they might be worried about making money on the Coyotes. The team would only get just over $15 million per year from the city of Glendale to run the arena. When the NHL owned the club, Glendale forked out $25 million per year. Add the fact that Phoenix is last in attendance. Plus, huge cable deal, like the LA Kings secured, is unlikely. So the potential to make money will be a difficult task.
So the Coyotes future in Phoenix seems rather fuzzy again. Surely, no one wanted to raise these issues during the playoff run. No one likes to have their buzz harshed. But Jamison and his investors overpaid to buy them. Sometimes you have to in order to acquire a pro team. They reportedly agreed to buy them from the NHL for $170 million. Forbes.com lists them as being worth only $134 million. So what the angle to this story? Seattle could find themselves back in the picture, if a new arena proposal gets approved.