The Phoenix Coyotes and the city of Glendale saw the first year of their 15-year deal end with a $2.4 million shortfall from projected Jobing.com Arena revenues. According to AZCentral.com, the city expected “$6.8 million this year from sources that include ticket sales, parking receipts and naming rights for the arena.” Instead, that figure is going to be around $4.4 million. The deal allows the city to access an escrow fund to make up the shortfall, but even then the deficit will be $1.5 million. At this point all of Canada and parts of Seattle are probably rubbing their hands with glee at the prospect of the Coyotes demise, but this shortfall, surprisingly, doesn’t appear to be their fault. The Coyotes saw attendance increase; but the arena simply didn't have enough non-hockey events that generated revenue.
From
Caitlin McGlade:
Despite increased ticket prices and new parking fees, average
attendance at games was 13,776, up by more than 1,300 more fans from
its last full season. The team had seven sellouts and even broke the
single-game record for revenue three times. That put Glendale on
target for money coming from ticket surcharges at hockey games. But
the dearth of non-hockey events meant that, overall, the city has
collected about $1.4 million less in ticket surcharges than was
expected. Parking revenue was a significant problem. Parking revenue
at hockey events came far closer to the target but the overall total
came up short. Leaders had expected to collect $2.2 million in a full
year, but the total is about $1.3 million short of that, not counting
revenue from the final few games.
An interesting note about the parking situation at
Coyotes games: There seems to be some friction between the team and
the Arizona Cardinals. The NFL team opens lots at University of
Phoenix Stadium during arena events and charges half as much as the
Coyotes do for parking, which attracts roughly 300 cars for a weekend
game, for example. This would seem to be a problem that’s on
Glendale to fix; but then again, we’ve seen how that circus works.
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