In Glendale, AZ the city council has approved the amended lease agreement which clears the track for Greg Jamison to complete his purchase of the Phoenix Coyotes.
The City of Glendale will pay Jamison’s ownership entity lease permits the payment of $15M annually to Jamison’s ownership entity. It’s reported as a twenty year. $320M deal though. Obviously, there’s $20M unaccounted for in the media reports.
So, indulge me while I understand…Jamison buys the Phoenix Coyotes from the NHL for $170M. The taxpayers of Glendale, AZ will pay Jamison $320M to help operate the barn for the next twenty years. If he can operate the team at a break even to HRR (Hockey Related Revenue,) Jamison has almost doubled his money before he’s sold a ticket or a Shane Doan bobblehead.
Not too shabby a deal for Greg Jamison and his partners considering he’s buying a team coming off a deep playoff run.
Not only does this event solve Phoenix issue it solidifies the NHL’s commitment to its Southern Strategy of locating member teams in non-traditional but Top 40 media markets.
This should impact the lockout negotiations but no telling just how. Will the NHL be more prepared to increase revenue sharing now that the Phoenix Coyotes ownership issue is resolved? One would think so but one is not an insider.
With the “Southern Strategy” solidified, the NHL can also look at expansion into Quebec, Southern Ontario and maybe even Portland, Kansas City and/or Seatle. Not bad considering each new team ponies up a franchise fee of $75M.
Considering that (1) the taxpayers of Glendale, AZ have just offered the NHL $320M, (2) new barns are built or planned in KC, Quebec and Markham, Ontario one can only hope that the NHL/NHLPA will seize this opportunity and agree on how to share 3.3 billion dollars, and (3) recognize that the NHL economy will grow if they achieve the certainty of labor peace.
Carpe diem gentlemen.