Major development in the never-ending Arizona Coyotes saga: The citizens of Tempe have rejected the megadevelopment project that called for the construction of a new arena for the NHL team.
Invited to vote through a referendum, the population of Tempe, a university town located in the suburbs of Phoenix, rejected in a proportion of just over 56% the three proposals marking out the project.
The results have yet to be formalized by Maricopa County, but the No enjoyed an insurmountable lead late Tuesday evening. A third of eligible voters cast their vote – a considerable mobilization outside of general elections.
This verdict could sign the death warrant of the Coyotes. In a brief statement, the NHL said it was “terribly disappointed” with the turn of the vote. “With the Coyotes, we will evaluate the possible options for the continuation of the events,” it was added. To the local media, the president of the organization, Xavier A. Gutierrez, made the same remarks. “It was the best arena proposal in the history of Arizona,” he breathed, visibly shaken.
The conciseness of the NHL’s response as well as its lack of immediate commitment to maintaining the franchise in the Phoenix area is telling. Although he has historically been a forceful defender of the Coyotes’ presence in the country’s fifth-most populous city, circuit commissioner Gary Bettman might be at a loss for arguments.
In the past, he has repeatedly said that the team’s residence at Mullett Arena, a small amphitheater of barely 4,600 seats located on the campus of the University of Arizona, was a temporary solution. This situation has the effect of depriving the organization of millions of dollars in ticket revenue given the low capacity of the building. Journalist Frank Seravalli, of Daily Faceoffs, pointed out in an analysis that the circuit’s other owners are stamping their feet. Under the NHL’s revenue-sharing system, the Coyotes are expensive for other franchises. Apparently, the governors are not happy to see a team playing their home games in a university arena.
If the NHL resolved to relocate, we can bet that the city of Houston would leave with a head start.
Megaproject
Citizens of Tempe were asked to vote on the construction of a $2.1 billion entertainment district, the centerpiece of which would have been a state-of-the-art arena for the Coyotes. The project was spearheaded by Bluebird, a development company created by billionaire Coyotes owner Alex Meruelo and enthusiastically promoted by NHL commissioner Gary Bettman. The majority of the sums were to be financed by private investments, although the municipality should have paid some 240 million in decontamination of the land and infrastructure. Tax breaks were also provided.
This popular refusal comes at the end of a veritable electoral fight which has seen two camps form. “Tempe Wins” [Tempe gagne, en français], generously funded by Meruelo and the Coyotes, counted on the support of the NHL, the current city council and a group of former mayors, among others. Shane Doan, ex-glory of the Coyotes, and Gary Bettman have also multiplied the speeches in their favor.
Facing them, “Tempe First” [Tempe d’abord] campaigned fiercely for the arena and its entertainment district never to see the light of day. The No campaign mainly focused on the share of public funding for the project. Lauren Kuby, former municipal councilor and one of the strongest voices against the project, estimated in a radio interview that it was rather a total bill of 740 million that taxpayers would have absorbed.
In addition, last March, the City of Phoenix filed a lawsuit against the City of Tempe on the grounds that the project would violate an agreement between the two municipalities. This provides for a residential exclusion zone near Sky Harbor airport in order to avoid inconveniences linked to air traffic for residents, particularly in terms of noise.
Long road
It’s been a long road for the Coyotes, from their arrival in the desert in 1996 to that crucial vote.
The organization has had seven different majority owners in just 26 seasons. Many times, the end of hockey in Arizona has been predicted, especially after the club’s bankruptcy in 2009. Year after year, the team’s attendances are among the lowest in the league, and the franchise consistently ranks last. from the magazine Forbes on the value of NHL teams.
For 10 years, the club has reached the playoffs only once. The team’s finances are tight as can be. Its managers have become specialists in artificially inflating their payroll by acquiring injured players who cost them nothing, or almost, in hard cash.
In June 2019, billionaire Alex Meruelo acquired the franchise, which was to inject some stability into it. However, in 2021, the Athletic site published an investigation revealing a toxic working environment within the club, as well as irregularities in the financial management of the team. In 2022, the team had to find a new arena after the City of Glendale, where the Coyotes had played since 2003, terminated their lease due to multiple late payments and unpaid bills.
While waiting for the construction of a new building, they settled in the Mullett Arena, third and possibly last home in their history.
In the event of a relocation, which could be announced in the coming weeks according to some observers, the city of Houston appears to be the most likely destination. Rumors have linked the NHL to the Texas metropolis for years. The Toyota Center, home of the Rockets, in the NBA, could host hockey without problem – the arena has already hosted an American League club. The names of Salt Lake City, Kansas City and even Atlanta have also been mentioned over time, while a candidacy from Quebec, without being impossible, seems so improbable.