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Coyotes Howl Foul - Glendale votes to cancel arena deal

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Well that lasted long

 

TSN During a special meeting convened Wednesday night that featured threats of a $200-million lawsuit and emotional fans wearing team jerseys, city councillors in Glendale, Arizona, voted to cancel the arena management contract that sees the city pay $15 million a year to the Arizona Coyotes

 

The decision leaves the future of the struggling NHL team very much in question

 

 

The Yotes are going to sue Glendale but what a mess this could be.  The NHL sure worked hard to keep the Coyotes in Arizona. I wonder if they will continue to try and keep them there or if they have finally had enough.

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Form the sound of things, the Coyotes technically violated State law by hiring Tindall and having him broker the arena deal, because he was still receiving severance from the City.  So legally, it sounds like the City Council can do this.

 

"The city in its vote Wednesday relied on state statute 38-511. That statute, which is included in the arena management deal, says that the state can cancel a contract within three years if anyone involved in negotiating or drafting the contract for the state or any public department, is an employee of any party to the contract (the Coyotes)."

 

But, I'm no lawyer.

Edited by coastal_caniac

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Ah yes, coastal, but if one is receiving SEVERANCE PAY, are they still an "employee"? I suppose the question becomes "What defines an employee"? I mean, just because a person is on a payroll does not necessarily confer "employee" status. This could get very interesting!!

Edited by KJUNKANE

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Here's how TheHockeyNews described it:

 

"an Arizona statute permitting a government agency to cancel a contract if an employee directly connected to the agreement becomes an employee or agent to the other party, and in this case, former city attorney Craig Tindall was hired as the Coyotes’ general counsel in 2013."

 

To me it sounds like the clause is designed to ensure that a company doesn't influence a contract in their favor by promising to give someone on the other side a nice job after the contract is signed.  Or maybe it's to prevent poaching? Glendale's City Attorney at the time of the contract was subsequently hired as the Yotes General Counsel.  Not sure how much influence he had in actually negotiating the original contract; sounds like maybe not too much and it's more of a loophole than actually "buying" influence, but who knows. . .

Edited by LakeLivin

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Ah yes, coastal, but if one is receiving SEVERANCE PAY, are they still an "employee"? I suppose the question becomes "What defines an employee"? I mean, just because a person is on a payroll does not necessarily confer "employee" status. This could get very interesting!!

 

KJUN, I posted "technically" a state statute was being violated, and also that I wasn't a lawyer. :)

 

Regardless, and based on the facts that are public, the City Council used the State of AZ statute to dissolve the arena deal.

 

I feel really bad for Yotes fans.

 

My understanding is that Glendale is not the perfect location, which is the issue, and not whether the fanbase there can support an NHL franchise.

 

Edit:  On Sportsnet yesterday they had the President-CEO of the Coyotes on the show, and the Yotes are evidently crying foul and will be in State court today.  Sounds like they have no intentions of renegotiating the arena lease and are going to be suing for "damages" incurred.

 

This is not only going to be interesting, but it sounds like it's going to get UGLY before all is said and done.

Edited by coastal_caniac

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According to that brief article, it appears that he attempted to invest in several teams, including the Islanders. Maybe Karmanos should search him out? Could he be any worse for our team?

Edited by KJUNKANE

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http://www.tsn.ca/talent/coyotes-will-eye-other-cities-if-team-loses-lawsuit-1.310073

 

Arizona Coyotes officials will explore relocation if the team loses a legal battle with the city of Glendale, an NHL source confirmed to TSN.

 

The source said team officials believe they can raise the cash required to pay other NHL team owners a relocation fee after an ownership shakeup this week.

 

An NHL governor told TSN that it's hard to predict the price of a relocation fee, and said it would probably depend on the market to which the Coyotes' owners are looking to relocate.

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Mayor of Glendale tased by Yotes fan.  Seriously. 

 

http://www.12news.com/story/news/local/valley/2015/06/13/mayor-glendale-tased-charity/71180668/

 

If it was April........

Okay, THAT is freakin' awesome, and I've got $100 to get things started right now if Alex Semin will agree to be tased. Not that I'd expect any reaction.

 

http://www.tsn.ca/talent/coyotes-will-eye-other-cities-if-team-loses-lawsuit-1.310073

 

Arizona Coyotes officials will explore relocation if the team loses a legal battle with the city of Glendale, an NHL source confirmed to TSN.

 

The source said team officials believe they can raise the cash required to pay other NHL team owners a relocation fee after an ownership shakeup this week.

 

An NHL governor told TSN that it's hard to predict the price of a relocation fee, and said it would probably depend on the market to which the Coyotes' owners are looking to relocate.

"Hard to predict the price of a relocation fee?" Just go to UHaul.com and calculate their biggest truck one-way to Vegas, for cryin' out loud!

Edited by top-shelf-1

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Okay, THAT is freakin' awesome, and I've got $100 to get things started right now if Alex Semin will agree to be tased. Not that I'd expect any reaction.

 

 

 

I'll up that by $100, and actually if I was pulling the trigger I might go as high as $500.  And I could bring my own cans for him to kick down I-40 afterwards on the way out of town.

Edited by coastal_caniac

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"Hard to predict the price of a relocation fee?" Just go to UHaul.com and calculate their biggest truck one-way to Vegas, for cryin' out loud!

 

I think he's talking about the fee the NHL would charge a franchise for the "privilage" of relocating (similar to an expansion fee).  Pretty sure the last time the Preds were considering relocation I saw figures somewhere between $100m and $200m. And that was 5 years ago; I'm sure it would be more today. 

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I'll up that by $100, and actually if I was pulling the trigger I might go as high as $500.  And I could bring my own cans for him to kick down I-40 afterwards on the way out of town.

 

I'm down for a Semin tasing, but while fun for us, would that even get him moving?

Edited by super_dave_1

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I think he's talking about the fee the NHL would charge a franchise for the "privilage" of relocating (similar to an expansion fee).  Pretty sure the last time the Preds were considering relocation I saw figures somewhere between $100m and $200m. And that was 5 years ago; I'm sure it would be more today. 

I get ya, but how does the NHL justify charging a relo fee if the franchise loses its venue through government malfeasance? I think the Preds could sue the league on that and win, and I think Bettman - a lawyer - knows it.

 

It's one thing to charge a fee when the team chooses to relocate. It's something else again when it's got nowhere to play. Assuming the Glendale council's action is upheld in court (a big assumption, for sure) it's in the league's best interest to find the team a home and remove any obstacles to doing so (like some nutty fee) - if only to sidestep potential legal action from every player under contract to the Yotes. 

Edited by top-shelf-1

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TSN

 

The NHL issued a stern denial to a report from the New York Post on Tuesday which stated that the Arizona Coyotes will be moving to Las Vegas under a new owner.

 

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Thanks for keeping on top of this, Xer. The New York Post wants to be a newspaper when it grows up, so I'm not surprised it found a way to print something alleging what the entirety of the hockey world expects to happen anyway. 

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TSN   City of Glendale, Coyotes reach resolution

 

If passed, the amended arena lease agreement will keep the Coyotes in Gila River Arena for the next two seasons, but will likely further relocation speculation that has swirled around the team for the past six years.

 

and when will that arena be ready in Seattle?

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TSN   City of Glendale, Coyotes reach resolution

 

and when will that arena be ready in Seattle?

 

 

Cough, cough, about two years?

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