Tuesday, 16 May 2023

Tempe Votes No

It's somewhat ironic that I'm using a Jerry Maguire image for the lede on this article, but fictional Arizona Cardinals receiver Rod Tidwell, played by Cuba Gooding Jr., is giving off the vibes that I'm feeling tonight after reading that the people of Tempe, Arizona have voted to reject the insane $2.3 billion arena and entertainment district proposed by Alex Meruelo. I have routinely written on this blog about the fallacies that are used to sell the idea that publicly-funded arenas do anything except make rich owners richer, but it seems the messaging that was being driven home in Tempe by a number of people and groups might have finally found a listening audience who understood what was at stake.

As reported by the Channel 12 NBC affiliate in Arizona, "[b]y a 56-44 split, the initial results for Tempe's special election show more voters chose to say 'NO' to let developers build a massive complex that includes a new sports arena for the Arizona Coyotes." For those interested, the election results can be viewed here for the three propositions on the referendum that would have paved the way for Meruelo to start building his new arena.

Let me be clear here: I am not celebrating this vote as a fight against the establishment like some may think I am. While I fully and entirely disagree with giving public monies to billionaires for them to build new homes for their toys, there are consequences that arise when billionaires begin to utter threats of relocation. All of the minor hockey associations and charities that were benefitting from the Coyotes' presence in the greater Phoenix area could be significantly harmed if the Coyotes decide to pack their bags for greener pastures.

The Coyotes didn't exactly make it sound like they were willing to fight to stay in Arizona following the vote.

"We are very disappointed Tempe voters did not approve Propositions 301, 302, and 303," Coyotes President Xavier Gutierrez said in a statement. "As Tempe Mayor Corey Woods said, it was the best sports deal in Arizona history. What is next for the franchise will be evaluated by our owners and the National Hockey League over the coming weeks."

Maybe, as a billionaire, Alex Mereulo could pay for the arena himself and leave the "entertainment district" out of the equation? That seems like it would work considering how little the arena cost in relation to the total scope of the project. Overall, this would be a pretty fair proposal to me, but what do I know?

I don't like seeing franchises move nor do I appreciate owners threatening to move teams as leverage to get new stadiums and arenas built. I've gone through it once, and it absolutely sucks. What should be noted, though, is that no one has used the "R-word" yet. I'm hopeful that the Coyotes can find some way to remain in Arizona. They have left a solid footprint in the desert since arriving in 1996, and there has to be a better solution than "Welp, we've exhausted all our resources" when talking about a billionaire owner.

It becomes a waiting game now as Meruelo, Gutierrez, Bettman, and their respective teams look at the long-term plans for NHL hockey in Arizona. The NHL likely won't want to leave the 11th-largest TV market in the US as per the The Neilsen Company, but if the alternatives are the seventh-largest (Houston) or the 29th-largest (Salt Lake City) markets, the NHL usually will opt for bigger before considering smaller.

Meruelo might be the wild card in this as his lease at Arizona State University runs out after the 2023-24 season with an option to return for one additional year in 2024-25. If Meruelo's care to own the team drops, the NHL may open the door to buyers much like they've done with the Ottawa Senators. We'll have to see if the NHL adds buying restrictions such as keeping the team in the greater Phoenix area, but we could see the Coyotes heading to a new city they'll call home if that process gets underway.

Of course, there will be pressure on Gary Bettman to find a solution that satisfies 31 other NHL owners as well as the constant investment of money into the Coyotes since their move from Winnipeg likely will reach a boiling point for some owners. At some point, the Coyotes franchise needs to be a partner and not a charity case for the NHL, and this may be the opportunity for a number of owners to push Bettman to organize a sale of the franchise to maximize the return on what appears to be an unwinnable situation in the desert.

Whatever happens next seems to be in the Coyotes' hands as the people of Tempe spoke with their votes tonight. With the team and league regrouping after this loss, we might be talking about a similar situation this franchise went through when it was announced that the Winnipeg Jets had been sold to a group who were planning to relocate the franchise to Phoenix. If that's the case, the days are certainly numbered from here until they move with the only question being how much longer will the Coyotes be in Arizona.

My hope is that there is a concerted effort to continue to grow hockey in Arizona whether the Coyotes stay or go. We've seen all of Winnipeg, Hartford, and Quebec City continue to support various levels of hockey while promoting the growth of the game at the grassroots levels, and I'm hoping the NHL will consider the enormous opportunity that they have to continue to foster the growth of hockey in the southwest US.

With Tempe voting "No" on the ballot tonight, the future of all hockey in Arizona will certainly be affected by Alex Meruelo's next decisions. That future is foggy right now, but we should know more in the coming weeks and months about where the Coyotes stand with respect to their future in the metro Phoenix area. My hope is that the billionaire owner cracks open his piggy bank for the good of the game, but that's not usually how these things go.

Until next time, keep your sticks on the ice!

No comments: