NHL Anti-Thread: Bad Business Decision Aggregator

[rams80]

In the 2012-13 ECHL regular season, the Wranglers filled up about 59% of the arena, if you want a statistical outlook on things.

Orleans Arena (Wranglers' arena) has a listed 7,773 person capacity for hockey.

If you want a better statistical outlook on things.

[Gothamite]

So they averaged 4600 fans a game.

Yep. That's Bettman's hockey-lovin' sunbelt, alright.

[Sodboy13]

Okay. Context.

Las Vegas' 4600ish per game is currently the 9th-best draw in the 22-team ECHL.

Allegedly tailor-made (if the Bucks leave) NHL market Milwaukee is drawing just over 3800 per game in the AHL this season. That's less than 25% of the arena's capacity.

There are plenty of excellent reasons to not put an NHL franchise in Las Vegas (and count me among those who think it would be a horrid idea, though it could become a comedy of errors if the Maloofs get in on it). "They can't fill their arena for their minor-league team" is not really a relevant argument. The Moose only got MTS Centre about 60% full, anyway.

[ninersdd]

I'd say Tucson or Bakersfield should get a team because those cities DMA's are bigger then Winnipeg's.

[BBTV]

.

[The_Admiral]

There are plenty of excellent reasons to not put an NHL franchise in Las Vegas (and count me among those who think it would be a horrid idea, though it could become a comedy of errors if the Maloofs get in on it). "They can't fill their arena for their minor-league team" is not really a relevant argument. The Moose only got MTS Centre about 60% full, anyway.

Is Wolves attendance down a lot this year? I watched a few games on 26.2 and it was awfully empty there. One was a game against Rockford.

[Sodboy13]

Looks like it. 5,900 a game, which is 10% down from this time last season, and downright dire by Wolves standards. I didn't think the Blues affiliation would have any impact, but it might.

[CubsFanBudMan]

As well as another Cup for the Blackhawks? Seems like a chunk of the dormant Hawks fanbase spent some time in Rosemont.

[Sodboy13]

If anything, I would think the Cup win would drive more hockey families to Wolves games, given Rocky's open "price the riffraff right out of the 300 level" policy.

[CubsFanBudMan]

You would think... yet attendance declines. Spend more money for fewer games to see the champs ... or season tickets for the AHL?

In this case I am the riffraff that can't justify the price of getting in the door anymore for my 300 level ticket.

And I'm close on the Bulls, too.

[Sodboy13]

I recommend group tickets if you can round up some people. We sat in the low rows in the corner of the 300 level for $75 a ticket, and since they're purchased right from a team rep, there's no Ticketmaster gouging involved. Probably wouldn't have made it to a game otherwise.

[IceCap]

Who could have seen this coming?

[NJTank]

The link does not work.

[zpqmaowl]

The Republic | azcentral.com

Fri Dec 13, 2013 9:53 PM

Buried under mountains of sports-related debt and facing the eventual end of a temporary sales-tax hike, Glendales financial future is bleak unless it makes some changes and soon.

In a five-year financial forecast released Friday, the citys new finance director paints a sobering picture for the City Council of a city turned upside down by debt, projecting an $8.6 million deficit for the coming fiscal year that nearly triples once the sales tax expires three years later.

At $31.5 million next year, the citys debt payments will be 17 percent of its $181 million general-fund operating budget, most of it wrapped up in sports and entertainment venues that arent paying for themselves, despite promises that had been made to residents.

The heavy debt led bond-rating agencies to downgrade the city in recent years.

A 10 percent to 12 percent burden is considered high. Glendales burden would hit 30 percent if other contractual obligations were factored in.

Tom Duensing, the citys finance director, said the citys $17 million fund balance will forestall a deficit for the current fiscal year, but that surplus will be exhausted in the fiscal year that begins July 1.

Duensing said the problems are manageable, but the council will have to decide how to raise revenue or reduce spending. Hell present the forecast at Tuesdays council workshop.

Municipal debt and city contracts limit how the city can pare back.

Options could include reducing or eliminating city services, selling off city land or other properties, extending the temporary sales tax or freezing employee pay for a sixth consecutive year.

But Duensing said its important for the council and the public to understand the scope of the financial problem before launching into possible solutions.

Our intent is to say, hit the brakes, he said. We need to be very strategic about this.

Glendale has earned national headlines for its financial woes, which began with ill-timed investments in hockey and baseball venues. Already deep in debt, the council agreed to pay $50 million to the National Hockey League to keep the Phoenix Coyotes in town and in July signed a $225 million deal to have the teams owners manage Jobing.com Arena.

Duensings forecast shows that the Coyotes deal will cost the city an estimated $8.1 million next year, after revenue associated with the deal.

Councilman Ian Hugh, who voted against the July agreement, said the Coyotes deal pushed the already-struggling city over the edge. There is no easy fix, he said.

I dont have the cure, Hugh said. But I can tell you what caused the disease.

In addition to the hockey debt, Glendale will pay $17.5 million next year in debt service for the Camelback Ranch Glendale spring-training ballpark, which is located in Phoenix. The city borrowed $200 million to build the ballpark, but commercial development at the sprawling property west of the Loop 101 and the hoped-for tax revenue never materialized.

Expected ballpark revenue next year is just over $130,000.

The one bright spot on the citys ledgers is the Westgate Entertainment District, including Tanger Outlets and the Renaissance Glendale Hotel & Spa, which is expected to bring $6.1 million in tax and rental revenue.

Mayor Jerry Weiers said hes eager to begin the budget process, even though difficult decisions lie ahead. Weiers, who took office in January, also opposed the latest hockey agreement.

Im very excited about Tuesday, because its going to force people to look at things in a new light, Weiers said. It gives us the opportunity to do things that shouldve been done a long time ago.

Glendales finances were rocked further last summer when a city-commissioned audit showed that several administrators had transferred more than $6 million from city accounts to hide the unexpected costs of an early-retirement program. Those in charge of the citys finances were forced to resign or were fired in August, and the state Attorney Generals Office is looking into whether laws were broken.

City officials were awaiting Duensings presentation as the first unvarnished look at financial picture under a new administration.

Other assumptions in the five-year forecast include:

Increased local sales tax, property tax and state-shared revenue.

A one-time $1.7 million cost to host Super Bowl XLIX, to be held at University of Phoenix Stadium.

A 2.5 percent across-the-board employee pay raise.

A contingency fund of 5 percent of total revenue, or between $8 million and $9 million, which is below the city policy of 10 percent.

Meeting all debt-service, contractual and capital-repair obligations.

[The_Admiral]

In addition to the hockey debt, Glendale will pay $17.5 million next year in debt service for the Camelback Ranch Glendale spring-training ballpark, which is located in Phoenix.

This seems uniquely stupid, even for them.

The city borrowed $200 million to build the ballpark, but commercial development at the sprawling property west of the Loop 101 — and the hoped-for tax revenue — never materialized.

Expected ballpark revenue next year is just over $130,000.

You know, for all the talk about the Coyotes, it might be the baseball stuff that sends the city into Chapter 9.

[Coast2CoastAM2006]

The Republic | azcentral.com

Fri Dec 13, 2013 9:53 PM

Buried under mountains of sports-related debt and facing the eventual end of a temporary sales-tax hike, Glendales financial future is bleak unless it makes some changes and soon.

In a five-year financial forecast released Friday, the citys new finance director paints a sobering picture for the City Council of a city turned upside down by debt, projecting an $8.6 million deficit for the coming fiscal year that nearly triples once the sales tax expires three years later.

At $31.5 million next year, the citys debt payments will be 17 percent of its $181 million general-fund operating budget, most of it wrapped up in sports and entertainment venues that arent paying for themselves, despite promises that had been made to residents.

The heavy debt led bond-rating agencies to downgrade the city in recent years.

A 10 percent to 12 percent burden is considered high. Glendales burden would hit 30 percent if other contractual obligations were factored in.

Tom Duensing, the citys finance director, said the citys $17 million fund balance will forestall a deficit for the current fiscal year, but that surplus will be exhausted in the fiscal year that begins July 1.

Duensing said the problems are manageable, but the council will have to decide how to raise revenue or reduce spending. Hell present the forecast at Tuesdays council workshop.

Municipal debt and city contracts limit how the city can pare back.

Options could include reducing or eliminating city services, selling off city land or other properties, extending the temporary sales tax or freezing employee pay for a sixth consecutive year.

But Duensing said its important for the council and the public to understand the scope of the financial problem before launching into possible solutions.

Our intent is to say, hit the brakes, he said. We need to be very strategic about this.

Glendale has earned national headlines for its financial woes, which began with ill-timed investments in hockey and baseball venues. Already deep in debt, the council agreed to pay $50 million to the National Hockey League to keep the Phoenix Coyotes in town and in July signed a $225 million deal to have the teams owners manage Jobing.com Arena.

Duensings forecast shows that the Coyotes deal will cost the city an estimated $8.1 million next year, after revenue associated with the deal.

Councilman Ian Hugh, who voted against the July agreement, said the Coyotes deal pushed the already-struggling city over the edge. There is no easy fix, he said.

I dont have the cure, Hugh said. But I can tell you what caused the disease.

In addition to the hockey debt, Glendale will pay $17.5 million next year in debt service for the Camelback Ranch Glendale spring-training ballpark, which is located in Phoenix. The city borrowed $200 million to build the ballpark, but commercial development at the sprawling property west of the Loop 101 and the hoped-for tax revenue never materialized.

Expected ballpark revenue next year is just over $130,000.

The one bright spot on the citys ledgers is the Westgate Entertainment District, including Tanger Outlets and the Renaissance Glendale Hotel & Spa, which is expected to bring $6.1 million in tax and rental revenue.

Mayor Jerry Weiers said hes eager to begin the budget process, even though difficult decisions lie ahead. Weiers, who took office in January, also opposed the latest hockey agreement.

Im very excited about Tuesday, because its going to force people to look at things in a new light, Weiers said. It gives us the opportunity to do things that shouldve been done a long time ago.

Glendales finances were rocked further last summer when a city-commissioned audit showed that several administrators had transferred more than $6 million from city accounts to hide the unexpected costs of an early-retirement program. Those in charge of the citys finances were forced to resign or were fired in August, and the state Attorney Generals Office is looking into whether laws were broken.

City officials were awaiting Duensings presentation as the first unvarnished look at financial picture under a new administration.

Other assumptions in the five-year forecast include:

Increased local sales tax, property tax and state-shared revenue.

A one-time $1.7 million cost to host Super Bowl XLIX, to be held at University of Phoenix Stadium.

A 2.5 percent across-the-board employee pay raise.

A contingency fund of 5 percent of total revenue, or between $8 million and $9 million, which is below the city policy of 10 percent.

Meeting all debt-service, contractual and capital-repair obligations.

Glendale reminds me of one of those missions on Sim City where the goal is to save the city. Glendale should have it's own Save the City mission for future SC releases.

[Evil G]

So, can the lease be cancelled by the city?

[Evil Doctor]

So, can the lease be cancelled by the city?

Probably only through bankruptcy. IceArizona can can cancel the lease after five years and $50 million in losses. Which is funny consider their total equity is in the team is only $45 million....

[Sodboy13]

The City of Glendale did originally want an "out clause" if revenue projections weren't met, similar to the provision that gives IceArizona the right to skip town if they lose $50 million. IceArizona refused, and the city buckled on it, right about the same time one of the council members took the situation to new depths by comparing the new handout-seeking hockey owners to heroic firefighters, less than a week after 19 actual firefighters died while battling Arizona wildfires.

So, they're stuck.

[The_Admiral]

I still maintain that Glendale will default before five years are up. They're bleeding like Ric Flair here.