Glendale city leaders approved a new deal with the National Hockey League’s Arizona Coyotes on Friday, ending a contentious legal dispute and ensuring the team is to play in the Phoenix suburb for at least two more years.
With a series of votes, the Glendale City Council unanimously gave the go-ahead to a revised management and lease agreement for the team to play at its city-owned arena through June 30, 2017.
The pact ends a legal battle that again cast doubt over the team’s immediate future in Arizona, but still leaves questions as to what might happen in the longer term.
Glendale Mayor Jerry Weiers said he believes the amended agreement benefits the city, the team and its vocal fan base.
“This is something that has been unpleasant for all of us, but it’s something that’s necessary... The circumstances right now I think are great,” Weiers said, before casting the final vote.
Under the deal, the city is to pay the team US$6.5 million per year to manage the Gila River Arena, plus give them about US$6 million from tickets surcharges, parking and naming rights.
The city had previously paid the Coyotes US$15 million to manage the arena, but retained a share of the other revenue streams. The amended deal is expected to save Glendale about US$2 million annually.
Glendale leaders terminated the previous 15-year US$225 million agreement signed on June 10, 2013, citing a conflict-of-interest law they said would allow them to void the contract.
The city said the conflict of interest arose when two of its employees later worked for the Coyotes.
The dispute ended up in Maricopa County Superior Court, with both sides saying they were prepared for the possible lengthy legal battle.
However, negotiations to resolve any contract differences restarted, leading to the deal being approved at Friday’s special council meeting.
Coyotes’ co-owner, president and chief executive Anthony LeBlanc told the council that team officials had to compromise, because the conflict was hurting its chances of acquiring players.
“This isn’t about saving face ... this is about saving our franchise,” LeBlanc said. “I truly thank you for agreeing to turn the page.”
He said he would have liked a longer-term deal, but made it clear to any skeptics that the team has no plans to leave.
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