This study was conducted by economist, Elliot Pollack, CEO of Elliot D. Pollack & Company.
Per the study: Regardless of the discount rate and assumptions used, the Arizona Hockey proposal produced lower
costs for the City of Glendale than if the Coyotes moved from Glendale and left the arena without a hockey team. The Arizona Hockey proposal is also more advantageous to the City than other proposals considered over the past
On a net present value basis and a 6.5% discount rate, the Arizona Hockey proposal costs the City approximately $17.8 million less over 20 years than if the team vacates the arena and moves from Glendale. The net
payment made by the City of Glendale is estimated to total $324 million. With a present value and 6.5% discount rate, payments by the City should be $203.7 million. The City’s estimated revenues over the 20 year period total $79.5 million. With present value and a 6.5% discount rate, the revenues compute to $44.9 million for the duration of the 20 year deal.
Arizona Hockey’s average annual cost to the City using ta 6.5% discount rate is $7.9 million. The average annual cost to the City if the team leaves is $8.8 million.
I thought it was interesting and quite embarrassing that the arena was used just 76 days of the year. 59% of that is hockey.
I would have to think that Greg Jamison and his background in the arena business can fill another 25 plus dates. In 2009, 108 dates were used.
Jamison’s background as president and chief executive officer of Silicon Valley Sports & Entertainment (SVS&E) and
manager and a board member of the San Jose Sports and Entertainment Enterprises ownership group, he has the expertise to drive business to Jobing.com.
He oversaw all business operation aspects of the San Jose Sharks, HP Pavilion at San Jose and select HP Pavilion
In addition, at SVS&E he managed all or parts of MLS San Jose Earthquakes, San Jose SaberCats of AFL, NLL San Jose Stealth, ATP Tour Tennis tournaments, professional boxing, and Strike Force Mixed Martial Arts.
Because of his business arrangements with the management and team side, he was able to combine many marketing programs, sales resources and contacts to create more efficient and meaningful business
partnerships. Which filled the arena.
I hope the Goldwater Institute and the naysayers read the study. Greg Dunaway contributed to
story. Link to full survey: POLLACK