Jul 4 2013, 12:15am CDT | by Poch de la Rosa
Craig Morgan of Fox Sports Arizona writes the Glendale City Council voted 4-3 that will pave the way for an arena lease deal. It stipulates Renaissance Sports and Entertainment it will pay RSE $15 million annually in exchange for several revenue streams which RSE considers to cover all of the city's costs, per Morgan.
Morgan also notes the deal was amended prior to the vote to remove a five-year out clause which would not have been approved by RSE's lenders or the NHL. In exchange and in Morgan's words, "RSE guaranteed to cover Glendale's losses in excess of $6 million if the ownership group opts to exercise its own out clause and relocate the team after five years."
RSE also added Global Spectrum, an arena management firm that also helps run the Arizona Cardinals' University of Phoenix Stadium, as a partner in managing Jobing.com Arena which could translate to more revenue for the city of Glendale.
Coyotes general manager Don Maloney said they certainly got the result they needed.
"Everybody who's followed this sage has said decide something or just shoot us. Fortunately, we got the result we needed to stay in a great place and a great hockey town."
According to Jesse Spector of the Sporting News, the outcome of the voting will allow RSE to buy the franchise, which has been under league ownership for the past four years. RSE has until August 5 to finalize the deal. It is also expected to change the name of the team to the Arizona Coyotes, he adds.
The Coyotes finished 21-18-9 in the 2012-13 NHL season, placing fourth in the Pacific Division and missing the playoffs.
Poch de la Rosa
Poch de la Rosa follows all major U.S. sports: NFL, MLB, NBA, NHL and the NCAA. His favorite teams are the Colts, Braves, Pacers, Sharks and Irish, respectively.
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