The citizens of Tempe have voted in a referendum on a vast development project, the results of which will be revealed on Tuesday evening. A Yes victory would confirm the team’s presence in the market in the long term. A No victory could mean a quick relocation. The situation in five points.
The challenge
On paper, the question at stake is rather simple: do the people of Tempe, a university town located on the outskirts of Phoenix, support a megadevelopment project that would include the construction of an arena for the Arizona Coyotes? ? In practice, it is obviously more complex.
The full project is valued at US$2.3 billion, mostly funded by private investment, although some public funding, including through tax breaks, is expected. An entire entertainment district would be built. In addition to the amphitheater, there would be a training center for the Coyotes, but also restaurants, shops, office space and luxury apartments.
City Council voted in favor of the project, enthusiastically endorsed by NHL Commissioner Gary Bettman. However, the decision will be taken by referendum.
The saga
Quebec hockey fans know this saga by heart. To follow the Arizona Coyotes is to witness a long train wreck that you never know will end. The organization has had seven different majority owners in just 26 seasons. Year after year, the team’s attendances are among the lowest on the circuit.
For 10 years, only one playoff series has been played in the desert. The club’s finances are tight as can be: in recent years, its managers have become specialists in artificially inflating their wage bill by acquiring injured players who cost them virtually nothing in hard cash.
In June 2019, billionaire Alex Meruelo acquired the franchise. 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 move after the City of Glendale, where the Coyotes had played since 2003, terminated the lease due to multiple late payments and unpaid bills. While waiting for the construction of a new arena, they moved to Mullett Arena, a small 4,600-seat amphitheater located on the campus of the University of Arizona in Tempe.
PHOTO JOE CAMPOREALE, USA TODAY SPORTS ARCHIVES
Mullett Arena
Countryside
What started out as an enthusiastic announcement by the NHL and promoter Bluebird, a development company created by Alex Meruelo himself, turned into a real electoral fight. Two camps have formed. “Tempe Wins” [Tempe gagne, en français], financed by Meruelo and the Coyotes, has already spent hundreds of thousands of dollars to encourage citizens to vote in favor of the project. The current city council and a group of former mayors have given him their support. Shane Doan, ex-glory of the franchise, and Gary Bettman have also multiplied the speeches in their favor.
Facing them, “Tempe First” [Tempe d’abord] fiercely campaigning for the arena and its entertainment district never to see the light of day. On the organization’s website, citizens are implored to reject a proposal that would have the effect of “filling the pockets of a corrupt millionaire who has broken his commitments with other municipalities in the past”.
The pursuit
Twist: Last March, the City of Phoenix filed a lawsuit against the City of Tempe, claiming the project violates 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.
In early April, Bluebird retaliated with a lawsuit for $2.3 billion, the value of the entire project, citing interference from the City of Phoenix. In a subsequent “Tempe Wins” press briefing, ex-mayor Hugh Hallman denounced a “political” maneuver. “Extortion and intimidation must be stopped,” he insisted.
The following
Citizens had until last Tuesday to send their vote by mail, although those who had lost or damaged their ballot had until Tuesday to vote in person. The results should be revealed this Tuesday evening, Quebec time.
Although he has historically been a strong defender of the Coyotes’ presence in the Phoenix area, Gary Bettman could run out of arguments if the No wins. Time and time again, the death of the Coyotes has been predicted, and the time may be right. Bettman repeatedly said that the residency at Mullett Arena was a temporary solution. This has the particular effect of depriving the organization of millions of dollars in ticket revenue given the low capacity of the amphitheater.
If the NHL resolved to relocate, we can bet that the city of Houston would leave with a head start. If however the Yes won, we would expect the Coyotes to settle in Arizona for a long time yet. In the meantime, you never know, the next twist.
According to information from Sports Business Journalof the’Arizona State Press and gophnx.com