Arizona Coyotes Could Move Despite Generous Arena Deal

It has been an roller coaster year of change for the Arizona Coyotes.  After months of political wrangling and court battles the Arizona Coyotes finally got the arean deal they were seeking.  The city of Glendale will provide a $15 million annual subsidy to the Coyotes in exchange for running the arena.  As part of the deal the city will get all revenue from Parking and concerts.

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With the new deal came a new owner. Andrew Barroway’s $155 million bid to by a 51% stake of the team was accpeted by the Coyotes and now awaits NHL board of governors approval.  This is the third attempt for Andrew Barroway to become an NHL owner after failing im bid to by the New Jersey Devils and New York Islanders

Sounds like everyone wins in this situation.  The struggling Arizona Coyotes get their arena deal to cut cost while the city gets some revenue to make up for the $15 million subsidy. Andrew Barroway gets his team. The team stay put and the fans are happy.  All is well in the desert right?

Not quite.

According to a report by Forbes, the 14 year deal given to the Coyotes to run the Gila River Arena isn’t ironcald.  The Coyotes can opt out of the agreement if profits aren’t in line.

"From Forbes: a lease agreementthat provides a $15 million a year subsidy for the team to run the arena through 2028 and an out clause that would let them move the team if the Coyotes lose an aggregate of $50 million."

In summary if the team loses $50 million or more the Coyotes can move out of Glendale. When you are dealing with numbers as large as those needed to run a NHL franchise losing $50 million is not that hard, esepcially if the team stuggles to get fans in the seats.

Of course Arizona Coyotes President Anthony LeBlanc refutes any reports of the team moving but the decision may be out of his control. Especially if attendence continues to suffer.