A study conducted by a Valley economist said that the city of Glendale will be better off financially by keeping the Phoenix Coyotes rather than losing the team.
According to the study, the cost of operating a Coyotes-less Jobing.com Arena would total $315.3 million over 20 years, the length of the proposed team purchase agreement between Greg Jamison, the city and the NHL.
Should the Coyotes stay, it would cost the city of Glendale about $17.8 million less over the 20 years, when certain discount rates are applied. However, the study said that the gross loss to the city could be doubled with no team in the arena.
“The worst of all possible scenarios for Glendale would be for the hockey team to leave,” the study said.
The Coyotes account for about 59 percent of all the events at Jobing.com Arena and, according to the study, the Cardinals’ ten-home game season, along with other events held in the arena, do not present a viable way for nearby businesses and hotels to remain open. If the Coyotes leave, it could create a ripple effect to outlying offices and residences as well.
The arena is only used 85 days per year on average, thus meaning it has excess capacity. Should the Coyotes leave, demand for the arena could fall off more and property values and tax revenue would decline, despite the city still by liable for bond costs.
Read the full study