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The Arizona Coyotes are late on paying the company that manages Gila River Arena, according to Glendale’s city manager, meaning the city hasn’t received its cut of the revenue yet.
The NHL team was supposed to pay $500,000 in rent, in addition to other fees, to the arena management company ASM Global, which manages the city-owned venue, by June 30. ASM then shares a piece of that funding with the city.
In two of the past three years, ASM has paid the city by June 30. But Glendale is still waiting. The company has until the end of October to pay the city before it would be considered late per the contract.
“A representative of ASM has informed us that the team has an outstanding balance that was due to ASM by June 30, 2020 but has not been paid,” Glendale City Manager Kevin Phelps said in a statement provided to The Arizona Republic. “ASM has communicated that they are working closely with the team to settle the accounts for the 2019-2020 NHL season.”
Phelps added that city officials have “been assured by ASM that they will make their payment by that contractual deadline.”
City officials already expected to see a decline in revenues as the COVID-19 pandemic canceled the regular hockey season, concerts and other events planned for Gila River Arena. The arena brought in about $1.9 million in revenue last fiscal year and is projected to bring in less this year at nearly $1.3 million, according to city projections. The city would get half of that, or about $640,000, a document shows.
Glendale got closer to $1 million last year.
The revenue from the arena management company helps offset the $183 million Glendale borrowed to build it in 2003. It spends about $13 million each year paying that debt.
The city also pays ASM $5.6 million each year in management fees and $500,000 annually in maintenance costs.
Chuck Steedman, ASM executive vice president of strategy and development, in a statement to The Republic said the company is working closely with the Coyotes.
“The team has been a long-standing partner of the arena and we are working closely with them, as is our normal course of business,” Steedman said.
Professional sports have felt the effects of the pandemic for months as the novel coronavirus canceled and delayed seasons. Leagues that have resumed have done so without fans in the seats.
The NHL season typically starts in October, but it’s not expected to start until at least December.
The Coyotes laid off employees in August, citing the pandemic. “These are incredibly challenging times for everyone,” the team wrote in a statement at the time. “Today, we reduced our operations to help us deal with this unprecedented health and financial situation.”
Contacted on Thursday about money owed to the arena management company, Rich Nairn, a Coyotes spokesperson, said the team isn’t commenting.
ASM did not answer specific questions regarding the Coyotes’ situation.
Reporter Jen Fifield contributed to this article.
Reach reporter Joshua Bowling at [email protected] or 602-444-8138. Follow him on Twitter @MrJoshuaBowling.
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