After Details of Their Agreement w/ ASU Emerge, the Coyotes Got Kind of a Raw Deal

The NHL's most controversial franchise in recent years, the Arizona Coyotes, have been in the spotlight for mostly the wrong reasons. Disgruntled workers declaring a toxic work environment, delinquent rent payments, the Mitchell Miller incident...

It's been a tough scene in Arizona the last few years. However, under the ownership of Alex Meruelo & the Meruelo Group, the team is seeking to alter its course towards a more prosperous era for the Desert Dogs. That plan, on the other hand, seems to hit speed bump after speed bump. After failing to promptly make rent payments for the Gila River Arena, the organization's business agreement with the city of Glendale, AZ went south in a hurry; both sides pointed the finger at the other with accusations of being uncooperative. What a mess.

However, most Yotes fans will tell you the split from Glendale is for the best. But things will get worse before they get better. With the club's eyes set on Tempe as the team's new home, they are forced to settle for a less than ideal home-ice arrangement for at least the next two years.

Details emerged of the Coyotes' agreement with Arizona State, and all one can really say on the matter is that the Sun Devils' Athletic & Marketing Directors were very effective in negotiations. Per Katie Strang, Investigative Reporter for The Athletic, the deal includes a number of criteria for the NHL club in order to maintain the agreement. For starters, there is a 'good behavior' clause, which covers 'widely held principles of public morality, failing to conduct its business affairs with a high degree of integrity and honesty and/or failing to act as a good corporate citizen.' In short, anything damaging to the reputation of Arizona State or its brand. One has to think Coyotes' players fraternizing with the student body falls under that umbrella, if you catch my drift. Failure to uphold these standards will result in ASU's termination of the deal.

Furthermore, the deal stipulates that the Coyotes have absolutely no right to alter the ice surface or its appearance during the term of the team's lease. Translated, the Coyotes cannot insert any additional logos, advertisements, or other graphics not included in the rink's original layout. It was initially reported that the Coyotes logo would not rest at center ice, as is typical in pro hockey. However, that was disputed, and center ice of their joint ice will feature logos of both hockey clubs. This is a masterclass in maintaining leverage by ASU & their people. Why allow the Coyotes free advertising rather than keep it for themselves? That's smart business.

In addition to the aforementioned restrictions, the Coyotes, who recently purchased gambling licenses through the state, are prohibited from exercising gambling activities on campus. No question, the Coyotes anticipate utilizing gambling revenues as a critical component in recuperating the losses they will inevitably sustain from a lack of gate revenue. While most NHL facilities can accommodate ~18,000 heads, the ASU/Coyotes arena will max out at 5,000, which is a serious drop off. So the gambling clause must hurt. Although, that deal may be up for re-negotiation at the end of 2022 if the team can successfully change state law, which if you watched House of Cards, is no small feat. More on that here:

The drama of the Arizona Coyotes charges on. The off-ice future of the team has some serious hurdles to overcome, but their on-ice operation is in solid hands. One of the best decisions the club has made since the ownership change was hire Bill Armstrong, a long time Associate GM for the St. Louis Blues, one of the NHL's most prominent franchises. Armstrong has already made some savvy moves after inheriting an absolute gong show of a team. While they probably won't be a contender anytime soon, Armstrong's moves thus far show a commitment to building a program from the ground up proper, which takes time. So if ownership can sort out their business dealings & management can put together a solid on-ice product, the future in Arizona could be exceptionally bright. If not, however, I hear Houston is really nice this time of year...

The full story from The Athletic will be linked below:

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