Venue Detail
Phoenix Coyotes
Revenues From Sports Venues Pro Facilities Report
February, 2012
Phoenix Coyotes
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9375 E Bell Rd Scottsdale, AZ 85260 Phone: 480-473-5600 Fax: 480-473-5699 URL: www.phoenixcoyotes.com Owner: Jerry Moyes League: National Hockey League, Conference D
Venue
Jobing.com Arena, 6520 N 91st Ave, Glendale, AZ Owner: City of Glendale Managed by: AEG Facilities Built: 2003 Capacity: 17,500 Concessionaire: Aramark Suite caterer: Aramark Soft drink: Pepsi Cola
Naming rights
Sold to: Jobing.com Price: $25,000,000 Term: 10 years Expires: 2016
Ticket prices
Season tickets range from $410 to $10,455 Single tickets range from $36.00 to $355.00
Attendance
2009 average attendance: 17,316 2010 average attendance: 11,989 2011 average attendance: 12,208
Suites
Quantity: 98 Term: 3 to 17 years Price: $65,000 to $150,000 Seats: 12 to 18 Includes: Tickets.
Club seats
Quantity: 400 Term: 1 to 1 years Price: $2,460 to $11,000
Financing
Steve Ellman, the team owner and arena developer, will pay the full cost of the arena, buy 220 acres in Glendale as a building site and develop more than 3 million square feet of commercial space on the land. The city will buy the arena for $180 million when it opens, but Ellman must pay for all cost overruns. The city will issue bonds to make the purchase and repay them over 30 years with sales tax and parking revenues. If Ellman does not fully develop commercial space next to the arena as planned, he will be responsible for some arena debt. Ellman will also develop other property in the city on land purchased by the city.
Ellman has agreed to make up the difference if the city does not collect enough money to meet its debt requirements. He would do that with either $2 million in cash or through a $2 ticket surcharge. Tickets will have $2.45 parking surcharge, but there will be no parking charge around the arena and Ellman must build the parking garages. The parking fee increases a nickel a year.
A $1 "base recovery fee" will also be built into the ticket cost with the first $12.5 million going to Ellman. After that, the fee goes to the city. The fee will go to the city after 13 years, even if Ellman has not received his share.
The Phoenix Coyotes finally opened a new arena that the team has been working on for years. The $207 million venue had a difficult journey to its creation and offers fans some unique amenities.
In the late 1990s, owner Richard Burke began the quest for a new arena. Voters in Scottsdale, Fountain Hills and Guadalupe all signed on to fund a new stadium district in 1999 that would have created a new arena for the Coyotes and renovate a dilapidated mall. Fountain Hills and Guadalupe each earned $1 million from the developers for their support. The vote came too late for Burke who originally hoped to open the building in 2001. Without the money to fund the team's losses during construction, he sold the franchise to Steve Ellman who was to redevelop the mall.
The planned 92-acre, $624 million development included the 18,000-seat arena plus a 500-room hotel, a conference facility and a YMCA along with various retail establishments. The Coyotes and Ellman Cos, the project developer, pledged $404 million, but the arena was not to be. Ellman walked away from $200 million in public funds, leaving Scottsdale officials surprised, especially after repeatedly extending the life of a stadium district to fund the arena and a shopping district renovation project. Ellman said he decided to move after city officials suggested they might seek a new public vote on the project. The two had been continually sparring over details of the arena agreement.
In short order after the break from Scottsdale, Ellman struck a new deal with Glendale. The city put $180 million up front into the construction plan. In return, Ellman promised to develop land around the arena. The company's plan calls for five million square feet or more to be developed. The city needs 800,000 square feet of taxable space to support $150 million in bonds it sold. If Ellman does not develop the space, the city can capture team revenues to make up the shortfalls. The agreement also requires Ellman to develop 1.6 million square feet of commercial space by 2010 and puts the company on the hook for arena construction cost overruns. At least 800,000 square feet must be developed within six months after the arena opens.
Team and Ellman company offices at the arena site will be exempt from property taxes.
The Coyotes will manage the arena and get all building revenues for hockey events and all revenue generated by the first 50 non-hockey events. Team revenues include naming rights. The arena is expected to generate $70.3 million a year. The city may also contribute $500,000 to help market the arena.
Glendale's financial model for construction of a new 17,500-seat arena for the Coyotes shows the city making a $100 million profit, even if the economy is slow. Most of that profit will come from the 220-acre shopping district. That will be enhanced by a second deal Glendale struck to build the Arizona Cardinals' new $355 million stadium next door.
The city's model calls for a profit of 2.5 percent annually to generate a total $475 million profit. The city's history shows a 3 percent to 8 percent growth rate. The money is generated by both sales and property taxes, plus $512,000 in annual rent from the team.
The new arena is designed to compete. The Coyotes left America West Arena over problems with sight lines for hockey. In addition to improving the view, the Coyotes have built an arena that is friendly to concert and show producers with easy access to the building's floor from loading docks and a roof that can hold heavy speaker loads.
For fans, the building will have tower suites, a feature first used at Nationwide Arena in Columbus. The suites will be available for game-day rentals. All suites will be located between the goal lines and not in the end zones. Only about 400 club seats will be installed.
For season ticket holders, the arena will have an Ice Lounge on the lower level behind the player boxes. The lounge will have glass walls that allow fans to see the players go from their locker rooms to the ice. Press interviews of players will take place in the lounge. The building will also have three outdoor lounges to serve groups and suite holders. (Facilities, Financial, Ice Hockey, NHLNHL, Professional Sports)