Mike Sunnucks of the the Phoenix Business Journal broke news today that the Coyotes might just be staying in the desert…for awhile, at least.
The deal comes with an out clause after five years:
The proposed Coyotes deal includes an out-clause after five years that could allow the ownership group to terminate the city deal and possibly move the team. The city of Glendale also has some serious concerns about approving the deal before a July 2 deadline.,
The proposed deal has Glendale paying Renaissance Sports and Entertainment $15 million over 15 years to run the arena. The city money also helps RSE close on a purchase of the team from the National Hockey League.
The city does not want to pay the $15 million so to offset that financial bite Renaissance proposed $6.7 million worth of revenue sharing and rent payments each year. That would put the city price tag at $8.3 million per year.
Glendale officials are trying to get this figured out by the NHL-imposed July 2nd deadline.
#NHL No penalty for RSE to break Coyotes lease after 5 years…NHL would demand $25M owned from Glendale immediately if deal doesnt' happen
— Mike Sunnucks (@mikesunx) June 27, 2013