Coyotes deal in peril after Glendale's latest proposal
The impasse arose Friday during what was supposed to be a public workshop to discuss a proposed agreement between the council and the prospective team owner, IceArizona, an investment group headed by partners doing business as Renaissance Sports & Entertainment. The agreement is for IceArizona to use and manage Jobing.com Arena.
But council members revealed during the hearing that earlier that day they had devised a counterproposal. Specifically, they wanted a five-year out clause that mirrored provisions IceArizona executive had given themselves.
Glendale officials formally posted the counteroffer late Friday, locking in that version of the proposal for a binding City Council vote Tuesday, though minor amendments could be made.
A representative of the team investors, who was monitoring the meeting via the Internet, texted reporters covering the meeting stating that they were unaware that the city had even drafted a counterproposal.
However, the Glendale out clause was new. The new proposal says that, like IceArizona, the city can opt out after five years or after reaching $50 million in losses.
In addition, Glendale officials sought language in the contract that prevented one side from suing the other for issues at the city-owned arena.
“We’re not going to agree to it. It is a non-starter,” IceArizona spokesman David Leibowitz said after the meeting.
“What we want the city to do is remove the out clause. That’s a deal breaker. We want the city to return to the deal framework that was negotiated previously,” he said.
Similarly, veteran Councilman Manny Martinez, who has supported every previous hockey deal, said he could only support the latest counter offer.
With a vote that was expected to be iffy under any circumstances, Sherwood’s and Martinez’s votes are critical for the deal to pass. Four votes are needed on the seven-member council to approve the arena management measure.
“I don’t know that anyone could have voted for what we saw yesterday in terms of the actual contract language. I don’t think that anyone could vote for it,” Sherwood said.
So even the most die hard pro-Coyotes council members weren't going to accept RSE's deal, or at the very least, the majority weren't going to. So now they are going to vote on their own counter proposal (I imagine they have the votes to pass it) but that proposal doesn't seem acceptable to RSE. Then you have this:
"If agreement approved Tuesday, RSE would have to accept within 1 week. Once in place, deal must close by Aug. 5, including @NHL sale of team"
If that July 2nd deadline is truly that, then I don't think RSE would even be able to agree to it within a week. The NHL may finally pull the plug at that point.