Is my math correct?

[dash]

The city council of Glendale will vote on a new lease agreement for Jobing.com arena on December 14th. It is being reported that Matthew Hulsizer has agreed to a purchase price of $170 million. However, there is the following:

Under terms of a proposed lease agreement for Jobing.com Arena, Hulsizer would receive $100 million from the City of Glendale for parking rights.

$170 million - $100 million = $70 million

Then there is this:

Hulsizer will also receive $97 million over six years to cover losses incurred by the Coyotes under an agreement that will see his ownership group manage Jobing.com for the City of Glendale

$70 million - $97 million = $-27 million

Pretty sweet deal for Hulsizer.

Coyotes suitor may get $100M - Winnipeg Free Press

 

[Destroydacre]

So in this economy, Glendale is basically paying Hulsizer to keep the team there. Why hasn't any other city thought of this brilliant strategy?

Look for Hulsizer to sell after 6 seasons.

 

[BostonAJ]

Jesus. They are now reduced to giving the team away.

 

[BOSSMANPC]

They had to do something to keep the team there. It would be a shame to see them move and leave that great fan base out in the cold.

 

[buffhockey]

At least the Coyotes are still there on Jan 8, 2011 so I can drive down and see the Sabres live.

 

[Cmon_WTF]

I'm not so sure it's as pretty a deal as it appears. Hulsizer is basically selling off a major source of revenue (Parking rights) while adding a major expenditure (Arena Management) for up front cash. He's basically leveraging the city of Glendale to purchase the team for him in hopes that he can mitigate the sizable negitive effect the loss of that revenue and added expense will have on the Coyotes annual bottom line over the remainder of the lease agreement.

 

[BostonAJ]

I'm not so sure it's as pretty a deal as it appears.

Agreed. And that's what's so sad. What might be even more troubling is that the Isles, even with a great history and fans, might be in even worse shape. They can't afford to ice an NHL team right now. Few people outside of Arizona (and few people in Arizona) are going to cry if the Yotes were to relocate. But if the Isles have to move, that sucks.

 

[IPostedWhat]

170,000,000 is 24, 24 is 10, 10 is 3, 3 is 5, 5 is 4, 4 is cosmic

 

[Destroydacre]

I'm not so sure it's as pretty a deal as it appears. Hulsizer is basically selling off a major source of revenue (Parking rights) while adding a major expenditure (Arena Management) for up front cash. He's basically leveraging the city of Glendale to purchase the team for him in hopes that he can mitigate the sizable negitive effect the loss of that revenue and added expense will have on the Coyotes annual bottom line over the remainder of the lease agreement.

I'm not sure how much revenue there is to be had for parking at Coyotes games. Based on their attendances I would guess that the parking lot sits at least half empty almost every game. In the hockey hotbed of Glendale, I'd rather take the guaranteed cash.

 

[dash]

I wonder how many Yotes season ticket holders are Canadian snowbirds...At any rate, plenty of good seats available...

 

[buffhockey]

I'm not sure how much revenue there is to be had for parking at Coyotes games. Based on their attendances I would guess that the parking lot sits at least half empty almost every game. In the hockey hotbed of Glendale, I'd rather take the guaranteed cash.

Went to a game last at jobing and valet attendant told us
free parking across the street or pay here and is was just across the street.

And the half empty lot was more like 80-90% empty...

 

[Darkstone42]

170,000,000 is 24, 24 is 10, 10 is 3, 3 is 5, 5 is 4, 4 is cosmic

Haha, well done.

As an aside, this looks like a case of having to pay the guy to take the team.

 

[kenyg54]

But then you have to add the costs of the 6 years to the equation, and it will no longer be -$27 million

 

[IPostedWhat]

Haha, well done.

Thought you would like that one.