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Glendale Will Not Renew Arena Agreement With Arizona Coyotes

August 19, 2021 at 3:32 pm CDT | by Gavin Lee 75 Comments

The city of Glendale, Arizona, home of the Arizona Coyotes, has decided to not renew the operating agreement for Gila River Arena after the 2021-22 season. This essentially is the city kicking the Coyotes out of the rink, with a statement from Glendale City Manager Kevin Phelps making it quite clear that the partnership is ending:

We are thankful to the NHL and the Arizona Coyotes for being part of the Glendale community for the past 18 years. The decision to not renew the operating agreement with the Coyotes was not made overnight or in a vacuum. We carefully weighed input from key stakeholders, our expert economist, our arena management firm and our City Council. 

In a follow-up report, Katie Strang of The Athletic has Phelps on record explaining that they have “reached that point of no return” and examines the large debts that the franchise owed as of July 29. The city had agreed to forgo an amount owed from last year due to the pandemic affecting the team’s financial situation, as long as the Coyotes agreed to “keep current with all future financial obligations,” which has apparently not occurred.

It is not at all clear what the next step is for the Coyotes. Finding another arena in the area will be difficult, and there have been obvious pushes in the past by places like Quebec City and Houston. The NHL’s long-standing position has been to try and keep the Coyotes in Arizona, but this is just another setback in that goal. Previously, the team has indicated a desire to pursue a new arena deal in Tempe, and the original deadline for proposals was today. That was recently delayed until September 2, and there are considerable hurdles for that plan as well. Phelps told Strang that the Tempe interest was not the reason for the decision to terminate the Glendale arrangement. For now, the team will play out the 2021-22 season in Gila River Arena and Glendale, but their future beyond that is extremely murky.

The Coyotes released a statement a few hours later:

We are disappointed by today’s unilateral decision by the City of Glendale to break off negotiations on a multi-year lease extension agreement. We are hopeful that they will reconsider a move that would primarily damage the small businesses and hard-working citizens of Glendale. We remain open to restarting good-faith negotiations with the City.

Most importantly, the Coyotes are one hundred percent committed to finding a long-term arena solution here in Arizona, and nothing will shake our determination to do what is right for our organization, residents of the entire Valley and, most important, our fans.

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PHR Live Chat Transcript: 08/19/21
View Comments (75)

Comments

  1. Ol' Voodoo

    4 years ago

    Houston, we have an NHL team.

    5
    Reply
    • Al Hirschen

      4 years ago

      Move them to Quebec city. Instant rivalry with Montreal. And Buttman said the Quebec city would be logical place

      5
      Reply
  2. JD in NS

    4 years ago

    Houston, KC, and Quebec City will be calling

    4
    Reply
  3. jdgoat

    4 years ago

    Bah God so is that Portland or San Diego’s music?

    Reply
  4. Bloodbath

    4 years ago

    Quebec nordiques is what people want

    11
    Reply
    • wreckage

      4 years ago

      Not while Peladeau has NHL rights in QC.

      Reply
  5. Mike Jaquish

    4 years ago

    Make it Houston or San Diego so there’s no need for conference realignments.

    Reply
    • jdgoat

      4 years ago

      Houston would require it. Denver would likely be the team that is screwed and has to move to the pacific.

      Reply
    • Coach28

      4 years ago

      Why? Arizona is already in the Central. Moving them to Kansas City or Houston would the the obvious choices.

      4
      Reply
    • sisseton

      4 years ago

      Why would Houston require it? Arizona is already in the central and Houston would just be more central.

      1
      Reply
    • jdgoat

      4 years ago

      Arizona is in the central? I never realized they moved but I guess that makes sense with Seattle. That opens up way more options then in the Midwest.

      1
      Reply
    • Getzlaf's Bald Spot

      4 years ago

      Can’t see SD happening. Ducks own the Gulls and have a great thing going down there. The market rights alone would be a cluster. Too many other options to entertain the trouble.

      1
      Reply
  6. riverrat55

    4 years ago

    Quebec Nordiques , here we come

    7
    Reply
    • wreckage

      4 years ago

      Quebec will not receive another team as long as Peladeau owns the NHL rights there.

      1
      Reply
    • riverrat55

      4 years ago

      @wreckage, had a brain fart with the last 2 seasons of team alignments and forgot that Arizona is now in Central Division , agree now that Houston or Kansas City would be a better option for relocating the Yotes.

      Reply
    • wreckage

      4 years ago

      @riverrat55
      The divisional alignments may be an issue but not a major one. CBJ could easily go back to the Central if it was needed. The issue is the owner of the Quebec city arena and the guy who has been trying to get a team back in QC, Peirre Karl Peladeau, was the leader of the Parti Quebecois, a political party that wants to seperate from Canada. It would be like Robert Kraft leading a political party to have Massachusetts seperate from the US.

      1
      Reply
    • riverrat55

      4 years ago

      Thanks wreckage, am just a country boy from Tennessee who loves Hockey , have trouble when I go to Canadian based teams as only thing of French I know of is from a couple of Forensic based authors who’s character is based in Montreal , had trouble on Hockey Sites reading about some teams trying to get around the translator to English , Thanks for info

      Reply
  7. dave frost nhlpa

    4 years ago

    I don’t see the club moving to the Eastern Conference.
    Houston
    Kansas City
    Portland
    Saskatchewan

    Reply
    • dave frost nhlpa

      4 years ago

      San Francisco as well.

      Reply
    • J.H.

      4 years ago

      They would most likely not move a team to Portland so quickly after establishing Seattle. Houston or Kansas City make a lot of sense. But I bet they find a way to keep them in Arizona, at least for a little bit longer.

      Reply
    • jdgoat

      4 years ago

      I feel like the Sharks would be very much against a move to San Francisco. Similar to how the Giants refuse to allow the A’s to move from Oakland to San Jose as it eats up their fanbase.

      3
      Reply
    • KAR 120C

      4 years ago

      LOL. Saskatchewan. It will never happen, but the province can dream.

      3
      Reply
    • bigdaddyt

      4 years ago

      ya as someone who lived there for a few months only i can say they would have some crazy good passionate fans but there wouldn’t be the tv deals or corporate sponsorships available to actually make anywhere close to a profit. the province is just to small to find any kind of long term success unless a billionaire owner comes in who just doesnt care about losing somewhere like 50-100 million a year

      1
      Reply
  8. sadminnesotan

    4 years ago

    I don’t understand why the NHL wants to keep them in Arizona, they’re such a laughing stock not just in hockey but in all of sports. I think they just have to cut their losses and move the team.

    6
    Reply
    • J.H.

      4 years ago

      I agree, but I suspect they’ll find a way to keep them there after all is said and done. At least for a little while. I’m not super familiar with their ownership situation, though. Isn’t he local? The owner’s preference makes a huge difference. If he wants to stay, then that’s big.

      Reply
    • Stormintazz

      4 years ago

      link to en.wikipedia.org worth a billion

      Reply
    • Nha Trang

      4 years ago

      This is plain ego. Bettman has spent 25 years pushing the Sunbelt gig, and it was long ago obvious that Arizona is the hill he really plans to die on. Phoenix is a decent minor league town, but that’s all it is.

      2
      Reply
  9. tjettman

    4 years ago

    Kansas City has an arena they built just waiting to put someone in it.

    1
    Reply
  10. theodore glass

    4 years ago

    I thought the Coyotes were going to submit a proposal to build an arena in Tempe today? Is that out of the window now?

    1
    Reply
    • Gavin Lee

      4 years ago

      The proposal deadline for Tempe was delayed until September 2. I’ll include that in the piece.

      4
      Reply
  11. sweetg

    4 years ago

    Truth gary will do everything possible to stay in arizona. Only way they endup is Quebec city is If no other option available. We all know Gary only went to Winnipeg because only other option other then folding. Gary preferred canada to admitting one of his teams folded.

    1
    Reply
  12. Ducey

    4 years ago

    KC might make the most sense.

    The NHL got $650 million for the Seattle expansion. You have to figure they are going to find a way to get some big bucks for a transfer. They got $60 million for the Winnipeg transfer, so maybe $100 million now?

    Someone in KC have the ability to pay $200 million for the team and transfer?

    Reply
  13. DarkSide830

    4 years ago

    Atlanta

    1
    Reply
  14. emt2807

    4 years ago

    Toronto has plenty of room for a second team.

    Reply
    • KAR 120C

      4 years ago

      That was shot down years ago. Cannot recall why.

      Reply
    • wreckage

      4 years ago

      @KAR120C Territorial rights.

      Reply
    • jdgoat

      4 years ago

      I get the Leafs are a pretty big joke but I find it hard to believe a large enough portion of their fanbase would jump ship and support a second team. Even if they were good the second team would always seem like an adopted little brother who wasn’t wanted.

      Reply
    • wreckage

      4 years ago

      The issue wouldn’t be fans, it would be corporate dollars and broadcasting revenue. The Legacy group has attempted to discuss a 2nd team in the GTA and been shot down both times. And when Jim Ballsillie attempted to buy the Preds and Coyotes to move them to Hamilton it was shot down. Hamilton falls into the Toronto and Buffalo regional rights area and it was believed both said no to relocation to Hamilton.

      1
      Reply
    • backhandinbaptist

      4 years ago

      Can you imagine if Toronto had 2 teams? They already act as if they’re the only team in the league I can’t imagine a second one!

      Reply
    • wreckage

      4 years ago

      Might humble them some if it actually happened. Divide the city among 2 teams so they don’t think the Leafs are the only team on the planet. And the expansion franchise would probably win a playoff series before the Leafs too.

      Reply
    • KAR 120C

      4 years ago

      So there are three teams in New York within spitting distance, but another one between Buffalo and Toronto would be too much. Silliness I say.
      It’s not like they can make the arenas any bigger and as the pandemic has made apparent the NHL teams rely on ticket revenues. Don’t see Buffalo or Toronto losing out in any way.

      1
      Reply
    • Joe Carters walkoff

      4 years ago

      Especially if that team came in and made it to the 2nd round of the playoffs before them :)

      Reply
    • Jimmykinglive

      4 years ago

      The New York Metropolitan area has about 20 million people. Toronto has 6 million. That’s why New York has three teams

      Reply
    • wreckage

      4 years ago

      Territorial rights are more to do with TV rights in the area than population. In NYS (population of 19.45M, 8.4 in NYC) there are likely about 3M people who pay attention to NHL hockey, the population of Ontario is 14.57M (5.928M in the Toronto area) and there is likely closer to 9M who pay attention to the NHL. The leafs compete with 1 MLB team, 1 NBA team, and 1 CFL team for viewership in the area. The Rangers compete with 2 other NHL teams instate let alone close, 2 NBA teams, 2 MLB teams, and 2 NFL teams… then add all the teams/cities nearby.

      Reply
  15. The Mistake of Giving Eugene Melnyk a Liver Transplant

    4 years ago

    Just fold the team, have all other teams draft their players and prospects. Then create an expansion team and make over 500 million dollars in expansion fees. I mean the answer is so obvious!

    2
    Reply
  16. Breakaway

    4 years ago

    Arizona was moved to the Central division for this reason. Houston is 4th largest US market. Rockets owner wants a 2nd team for the arena. Bettman already has talked to the owner a few times. Don’t have to worry about realignment. I will be shocked if it isn’t Houston

    4
    Reply
    • wreckage

      4 years ago

      Arizona was moved to the central because Seattle was added to the league and its more Pacific than Arizona is.

      1
      Reply
    • Gbear

      4 years ago

      Agree. I’d be shocked if Houston isn’t already in the planning stages here to welcome in their new tenant.

      1
      Reply
    • jdgoat

      4 years ago

      Would the Toyota center be suitable to add an ice rink or would they need to build an entire arena as well?

      Reply
    • Van4Stros

      4 years ago

      The Toyota Center was the home of the IHL/AHL Houston Aeros until 2013.

      Reply
  17. Gbear

    4 years ago

    This may be a distinction without a real difference, but instead of relocating the ‘Yotes, couldn’t they just fold and in their place the Houston Armadillos come in as an “expansion” team? That way Bettman and Co. could extract more money out of the transaction. And we know hockey is spelled M.O N.E.Y to the NHL’s braintrust.

    1
    Reply
  18. Breakaway

    4 years ago

    Alex Meruelo owns the Coyotes. The NHL couldn’t just fold the team without buying him out. Probably wouldn’t be worth it in the long run.

    2
    Reply
  19. RemembertheSonics

    4 years ago

    The AZ situation is far more complicated than simply moving the team to another city. Phoenix is now the 5th largest in US, so moving to Hou doesn’t really add much. The NHL would be more than reluctant to move to Quebec, while a major market in Canada is tiny by US standards. And, the Yotes are worth a lot more in AZ than any other location. Arizona recently granted sports team owners a gaming license for sports book. That adds tens of millions (hundreds) to the cost of any buyout/move. Thought, no arena is another existential twist to the story.

    Reply
  20. 66TheNumberOfTheBest

    4 years ago

    Gary moved the Yotes into the Central for a reason.

    As much as I’d love to have the Nordiques uniforms back in the league, not gonna happen. KC has a building, no one cares (though, I appreciate them spending $200 million to help seal the Pens deal in Pittsburgh).

    The only way Gary finally allows ARZ to leave Arizona is if they can leave for a bigger media market in the US southwest, which they could never do…UNTIL the owner of the Houston Rockets said he wanted an NHL team.

    IIRC, Gary met with him very soon after he announced that interest. Phoenix is the 11th biggest media market, but Houston is the 8th. This gives him a way to finally get out of the Phoenix debacle while still being able to present their US media partners a national product.

    2
    Reply
  21. Swiney50

    4 years ago

    Vive’ Quebec lib! …lol

    Reply
  22. ironcitie

    4 years ago

    Milwaukee coyotes

    1
    Reply
  23. jdgoat

    4 years ago

    Alright I’m sold. Bring back the Aeros with the bomber logo.

    3
    Reply
  24. A-320 Driver

    4 years ago

    Mark my words. You heard it here first. The coyotes will find another home in the Phoenix metropolitan area, so everybody just relax. They’re not leaving Arizona.

    Reply
  25. KilkennyDan

    4 years ago

    I am not a Coyotes fan, and I do not live in AZ (I don’t even live in N. America). But, I’ve been to virtually every NHL barn, to many AHL and several ECHL venues, add a bunch of CHL & NCAA hockey games. What is apparent to me with virtually everyone that decries AZ’s ability to support hockey is that they know just about nothing with what’s going on in that state and with hockey.

    Arizona is a big piece of the jigsaw puzzle of growing hockey in the USA. And growing hockey in the USA IS the game plan. Once it gets recognized as a “major” sport by the average American, the tv contracts & big $$ will follow.

    Phoenix is not vital for the plan, but it’s very important. Houston is the ONLY city that can make a viable argument as an alternative. But in the end, AZ has demonstrated too much good will (growth in youth hockey, commitment to building ice rinks, AZ State Univ. is D-1, and Tucson is AHL), it is good business sense to keep the major asset in what has become a very strong hockey market. In long run, the Owners will be richer by having a team in AZ – and they know it. That’s why Bettman has been so steadfast.

    Expect a downtown PHX or a Tempe site to be announced soon. The only real complication is finding a barn to play in while the new building is built. LV, SLC, or even Fresno or Tucson could be temporary homes.

    I loved watching hockey in Glendale because my team was treated as a home team. But, that image based on attendance and on sweaters in the barn is NOT an accurate reflection on the state of hockey in Arizona.

    4
    Reply
    • wreckage

      4 years ago

      The only reason AZ is still involved in NHL hockey is because Bettmann can’t admit he was wrong taking a beloved team from a serious hockey market and dropping it in the middle of the desert and hoping it grows. Phoenix/Arizona has failed to so many extremes it isn’t funny. Yet Vegas made it somewhat succeed immediately. Gary needs to admit failure with the ‘Yotes and let it go.

      He stole a team from Winnipeg and they were so determined to show him they were a viable market they forced a team back in short order. Meanwhile Coyotes ownership changes hands every 4 years because no one can make it succeed there.

      Its an experiment gone bad. Time to move on.

      5
      Reply
    • KilkennyDan

      4 years ago

      I am not being contentious:
      How much hockey have you watched in the state of Arizona, wreckage?

      Reply
    • Ol' Voodoo

      4 years ago

      “But, I’ve been to virtually every NHL barn, to many AHL and several ECHL venues, add a bunch of CHL & NCAA hockey games.”

      Off subject but do you want to be friends? I’ll buy the beers.

      Reply
    • KilkennyDan

      4 years ago

      I’m in Portugal now. I have to go to Germany or Sweden or Czech Rep. or Finland …
      Actually Europe is pretty good for hockey too.

      1
      Reply
    • Nha Trang

      4 years ago

      What does that have to do with anything, KilkennyDan? For decades now, we’ve watched teams lose money, and lose more money, and lose yet more money in Phoenix. I have never been in Arizona either, but it doesn’t matter a good goddamn how important Arizona allegedly is to the present/future of hockey: the bottom line is that the BEST Phoenix has ever managed, in 23 season, is 20th in the league in attendance. People just don’t support the team. Period.

      3
      Reply
    • Ol' Voodoo

      4 years ago

      I remember going to the Finland – Sweden and a Belarus – Germany games in Vancouver ’10.
      Remarkable experience seeing how other countries fans cheer compared to what I’m used to seeing. Not better or worse, just different. Also was one of the fortunate SOB’s to see the gold medal game. Can’t remember who was playing or if it was any good.

      Hoping to get over to see some SHL, Liiga, and KHL games before my number is up. Probably not the romantic European vacation that Mrs. Voodoo would be looking for but…

      1
      Reply
    • KilkennyDan

      4 years ago

      People DO support hockey in Arizona. That’s an unassailable fact.

      Another fact is that the Gila Arena is in the wrong place to attract fans. People do not want to fight a hour or more of traffic to get to a game.

      Your “period” is devoid of a firm understanding of the situation in Arizona. Period.

      Reply
    • KilkennyDan

      4 years ago

      BTW, why is attendance THE most important or relevant measure for the viability of a market?

      Nhp, try giving an answer rather thanks angry rant.

      Also, there are two conversations going on here. My being in Portugal has nothing to do with AZ; it was in response to a different comment.

      Reply
    • wreckage

      4 years ago

      @KKDan, what does it matter how much hockey I have watched in the state of Arizona. I have watched the team go thru 6 ownership groups in their 25 years. Their attendance is continually in the bottom of the league. Maybe the sport is becoming more popular in the state, but the team isn’t. And this is about business now, not feelings. The business is failing and has failed for 25 years. Its nice that hockey is becoming popular down there, but that doesn’t pay bills.

      1
      Reply
    • Nha Trang

      4 years ago

      (blinks hard) Why is attendance THE relevant measure for the viability of a market? Is that a joke or something? This is a gate receipt league. A higher percentage of revenue comes from ticket sales than for any other of the big four pro NA leagues. The term “small-market team” was coined in the THIRTIES, for pity’s sake. What the hell else would you base viability on, how cool you think the jerseys are?

      And suggesting that Glendale’s the problem isn’t paying attention. The team played its first seven seasons in Phoenix. It finished 20th, 20th, 22nd, 23rd, 27th, 29th and 29th in league attendance in those years. The only area in which the franchise has led anything is in bankruptcy filings.

      Try giving a real answer instead of nonsense, KD.

      Reply
    • KilkennyDan

      4 years ago

      You like to look backward. Business decisions – effective business decisions – are made with an eye to the future. The past may provide some guidance, but it is never the full blueprint.

      I have already provided the blueprint that the Owners and Bettina are following. So blink some more, then clean your eyes. Acknowledge that you are speaking from a position of ignorance – your own words belie this; that’s not a judgment.

      Bettman wants to be in Phoenix because the Owners want to be in Phoenix. The owners want to be in Phoenix because they know it fits into their long term forward-looking business strategy.

      Go spend some time there – you’ll see signs of a thriving hockey market. Do you really believe that people that love the game won’t support the game? You’re in denial because you want to stick to your formula for success. You don’t have a formula; you have a fiction that does not rely on facts pertinent to those who make the decisions on this. You’ll ALWAYS be on the losing side in this argument.

      Reply
    • wreckage

      4 years ago

      The Coyotes have failed multiple times. Find me one pro sports franchise that has had 6 owners in 25 years. Gary grew the sport and made it successful places many didn’t see happening. Dallas and California and Denver and Vegas for examples. Book is still out on Florida and Carolina as they seem to suffer when not skating a winning team. Arizona is a failure. They can’t keep throwing new owners at it before finally there is no one left. Just because the sport is finally getting some support does not mean the team will at a professional level. Fans are only willing to pay so much to support a team, if the Roadrunners are more in their budget than they will survive and the Coyotes will die. If the fans aren’t willing to spend enough to keep the Pro franchise afloat they need to move the franchise to a location fans will pay to make the franchise profitable.

      Reply
  26. iron

    4 years ago

    Cincinnati is actually a great hockey town. The city supports 2 minor league teams and would have rivals in Columbus, Chicago and Detroit.

    Reply
    • Stormintazz

      4 years ago

      2? They only have one. Cincinnati Cyclones ECHL They average 5,000 per game

      Reply
  27. brucenewton

    4 years ago

    Halifax seems the logical choice for the Coyotes relocation.

    Reply
  28. Donovan Voigt

    4 years ago

    Milwaukee or Madison would be a great candidate to acquire an NHL team

    1
    Reply

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