Glendale, Arizona, Agrees to Pay $197 Million to Keep Coyotes From Moving
The Glendale, Arizona, City Council voted 5-2 to approve a new arena lease for the National Hockey League’s Phoenix Coyotes that will cost taxpayers $197 million, according to the team’s Web site.
The agreement requires the city to purchase the team’s parking rights for $100 million, raised through bonds, and pay Matthew Hulsizer’s ownership group $97 million to help manage Jobing.com Arena.
Hulsizer, chief executive officer of Chicago-based investment firm Peak6 Investments LP, will use the money he received for parking rights to help purchase the team from the NHL for $170 million. Parking used to be free, but the 5,500 spaces will now be sold for between $5 and $20 to help recoup the city’s investment, according to a report in the Arizona Republic.
“This vote is another step towards securing our future in Glendale and we remain optimistic that a deal will be finalized soon,” the Coyotes said in a statement last night.
NHL Commissioner Gary Bettman said the league’s board of governors executive committee will recommend that Hulsizer be approved for ownership. He also said the city would land an All- Star Game in the next three years, probably in 2013.
The NHL bought the team in 2009 after former owner Jerry Moyes filed for bankruptcy. Hulsizer will be the team’s fourth owner since it was moved to Arizona from Winnipeg in 1996.
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