"IT'S A TRAP!"
Star Wars fans will
immediately recognize those words as the declaration of Admiral Ackbar from Return of the Jedi. However, any false
sense of confidence regarding yesterday’s “deadline” regarding the Phoenix
Coyotes should elicit a similar response.
As has been reported by
many different sources, yesterday was supposed to be the deadline by which
taxpayers were required to submit their petition for a referendum to be placed
on the November ballot for a vote on the City of Glendale ’s lease and management deal with the
group led by Greg Jamison.[1] Hanging in the balance is not only the future
of the Coyotes as a franchise, but also the face of the franchise, captain
Shane Doan. Through his agent, Terry Bross, Doan had
placed a deadline of July 9, 2012 before listening to offers from other teams
for his services. The clear intention was to wait and see if the petition
seeking a referendum was filed. If it
was, then he would probably field offers due to the uncertainty surrounding the
Coyotes’ ownership. Without it, he
appears to be positioned to resign in Phoenix .
Looks like the sale to Jamison’s group, which is contingent upon the lease and
arena management agreement, will be able to proceed and Doan can remain with
the franchise. Coyotes fans rejoice!
If that’s what you think,
then you have fallen into the trap. There is still a laundry list of reasons why
the deal to Jamison could fall through.
Relying on the July 9
deadline passing? IT’S A TRAP! The referendum-seeking taxpayers, led by Ken
Jones and Joe Cobb, believe that they actually have until July 15 to file their
petition. As Mr. Cobb explained in his interview with Puck and Gavel, he and his attorneys, the Goldwater Institute, believe
that the deadline is July 15, because it was not until June 15 when they “actually
were allowed to obtain blank petition forms by the court order overturning the
claim of ‘emergency” status.’”[2] Coyotes
fans should take some heart that the petition wasn’t filed yesterday.
Certainly, if Cobb and Jones had sufficient signatures to file the petition,
there would be no reason to gamble on the filing deadline for the sake of
getting unnecessary additional signatures.
But if Cobb and Jones can get sufficient signatures before next Monday,
expect the petition to be filed and cast the Coyotes’ future into doubt.
Relying on Cobb and
Jones having to obtain 1,800 signatures? IT’S A TRAP! In order for the petition to be successful, it
must contain a number of signatures equal to 10% of the last vote. The number often cited by Glendale is slightly more than 1,800, which
is based on voter turnout of slightly more than 18,000 for a 2008 Mayoral
election. However, as was recently
stated by Mr. Cobb in an interview with Mike Sunnucks of the Phoenix Business Journal, and later confirmed to Puck and Gavel, the total number of votes he
belives that is required is much lower. According to Mr. Cobb, the most recent
election was in November 2010 for two city council seats, an election which totaled only 11,309 votes, ten percent of which would be only 1,131, less than
2/3ds of the 1,800 cited by Glendale . According to Mr. Cobb, he was informed by
Connie Wilhelm, a proponent of the recently submitted petition seeking to have
a referendum on a proposed sales-tax increase placed on the November ballot,
that the minimum signature requirement was only 1,131.[3] If
Cobb and Jones come in with under 1,800 signatures, expect further litigation.
Let’s assume the
petitions aren’t filed or that Glendale
is successful in challenging their validity either because they are filed late
or because they have an insufficient number of signatures. Then everything will be sorted out, right? IT’S A TRAP!
In his interview with Puck and Gavel “[i]f the contract is signed, even in mid-November after an upholding Referendum vote, we would ask the courts to apply the Gift Clause prohibition to the subsidy.” In other words, the
contracts can be signed, the team can be sold, Doan can resign…only to then
have the lease and management agreement overturned as against the Arizona State
Constitution. Honestly, I can’t even
begin to process the chaos that would ensue from invalidating the lease and
management agreement overturned.
Also, be careful not to
miss the forest for the trees. The key issue not whether the Goldwater
Institute is successful in having the referendum placed on the November ballot.
It is also not whether the ballot is successful in having the ordinance
overturned. Finally, it is not whether the ordinance is overturned in court as
a violation of the Arizona Gift Clause.
It is just the specter of risk over the possibility of any one of these
outcomes coming to fruition that casts the future of the Coyotes in doubt. We
have seen a similar threat already kill a deal for the Coyotes, and it could do
so again.
With the recent report from Dave Shoalts of the Globe & Mail that if they Coyotes sale does not go
through, the team may be disbanded, it would behoove Shane Doan to at least
consider leaving the Coyotes, even though no petition has been filed by the
July 9 deadline. Could you imagine
signing a deal in warm, contending Phoenix , where
you have built your life, only to then be picked up by wintry, fledgling Edmonton in a dispersal
draft? I don’t mean to pick on Edmonton , but it
and Phoenix
could not be more different in climate -- both weather and hockey.
The bottom line is that if certainty of ownership is important to Shane Doan, then he simply cannot sign with the Coyotes, as their ownership situation may not even be resolved by the end of this year, depending on the ballot and any legal challenges thereto. At least for right now, Doan has the right to choose his own destiny, even if the Coyotes may not be a choice he can safely make. Perhaps it's time for him to follow Admiral Ackbar's advice and take evasive action by finding the next best situation for him and his family, even if that situation is not with the Coyotes.
On a personal note, I am disappointed that I could not post this sooner as it seemed to be the topic du jour for many publications, and I wish I could have jumped out in front of it based upon my interview with Mr. Cobb. Unfortunately, actual lawyering got in the way. I am happy though that I got to post on something that focuses on actual hockey impact as opposed to just a purely legal issue.
The bottom line is that if certainty of ownership is important to Shane Doan, then he simply cannot sign with the Coyotes, as their ownership situation may not even be resolved by the end of this year, depending on the ballot and any legal challenges thereto. At least for right now, Doan has the right to choose his own destiny, even if the Coyotes may not be a choice he can safely make. Perhaps it's time for him to follow Admiral Ackbar's advice and take evasive action by finding the next best situation for him and his family, even if that situation is not with the Coyotes.
On a personal note, I am disappointed that I could not post this sooner as it seemed to be the topic du jour for many publications, and I wish I could have jumped out in front of it based upon my interview with Mr. Cobb. Unfortunately, actual lawyering got in the way. I am happy though that I got to post on something that focuses on actual hockey impact as opposed to just a purely legal issue.
Unfortunately, I only
had time for one post today and I wanted to get this out there before it was
too late. That said, check back tomorrow
for information on the upcoming Nassau Coliseum issues, discussed in the light
of Land Use Law theories, which happens to be one of my absolute favorite
topics of legal discussion.
Finally, check back
later this week when I will have an interview with a representative of Glendale
First!, a PAC formed in opposition to the Goldwater Institute’s efforts to stop
the Jamison deal, as currently constructed.
***UPDATE*** 9:40 AM
Sarah McClellan of The Arizona Republic has posted a story regarding the passing of yesterday's Doan-imposed deadline. She notes that his agent, Terry Bross, does not feel any closer to a resolution following the passing of Monday without the filing of the petition. According to Ms. McClellan,
***UPDATE*** 9:40 AM
Sarah McClellan of The Arizona Republic has posted a story regarding the passing of yesterday's Doan-imposed deadline. She notes that his agent, Terry Bross, does not feel any closer to a resolution following the passing of Monday without the filing of the petition. According to Ms. McClellan,
"Two Glendale residents have been collecting signatures in hopes of adding the lease agreement to the November ballot. The city said signatures were due Monday, 30 days after the Glendale City Council approved the lease agreement with Jamison.
But organizers said they should have until next Monday to turn in signatures, because that's a month after they received paperwork to begin their efforts.The signatures were not submitted to the city on Monday, and one of the organizers, Ken Jones, said he plans to keep gathering signatures and won't turn them in until next Monday. If the city doesn't accept them at that time, Jones said he would consider a legal challenge.
The takeaway here is that Doan understands that this could drag out for a while. Whether that means he will field other offers or even act upon them remains to be seen. Check back here for continuing analysis of the ongoing Coyotes ownership issues.The uncertainty that continues to surround Jamison's bid has paused the negotiation process for Doan, but that could change soon should he decide to explore other teams. Bross planned to talk with Doan on Monday night to see if Doan would like to proceed with that option."
[1] I’m a bit of a stickler for technicalities, so I
have to point out that this is a bit of a misnomer. What would go on the ballot
is Glendale ’s
ordinance which grants the City Manager and City Clerk the authority to enter
into a 20 year lease and management agreement, not the agreement itself, which
has not yet officially been made with the Jamison group.
[2] There has also been mention of July 12 as the
deadline, as it is 30 days after Judge Fink’s order.
[3] In the interview with the Phoenix Business
Journal, Cobb states that he already had the 1,131 necessary, but would not
comment on the amount of signatures collected when asked by Puck and Gavel.
My feeling is that Doan and his team are well informed of most of those technical nuances, and his July 9 deadline was more a courtesy move rather than his true desire. He knows that it may linger for a long time regardless what happens with that petition. I expect him to start fielding the offers from everyone.
ReplyDeletePerhaps I wasn't entirely clear. The larger point I was trying to make was that if Doan won't sign with the Coyotes unless their is more certainty in their ownership situation, then he can't sign with them because their ownership situation will not be completely settled for a few months.
ReplyDeleteYou're right, the team is in very murky waters and a vision of their future is tremendously unclear. They are facing a very determined opposition which can and will create uncertainty for the team for a while. It might even be a part of their strategy. It seems that Doan is just really unsure about what to do.
DeleteAnd I wonder what the NHL is thinking. They should know better than to expect any clarity until, most likely, the end of the calendar year. I suppose they're just hoping Jamison takes the risk (or scraps the deal relatively soon).
Also, I'm really looking forward to your posts on the NYI arena situation. That mess has really piqued my interest. Feel bad for that team (I'm bet my feelings aren't shared by you as a Rangers fan though lol).
the sales tax initiative is based on the changing of the current Glendale City Charter regarding city sales tax where the Arena Management contract referendum is a contract between 2 parties (Glendale and Jamison's Arena Management group)that doesnt affect the Glendale City Charter.
ReplyDeleteI understand that, however, the increase in sales tax has been suggested as necessary for funding the arena management agreement with the Jamison Group. Without it, the City of Glendale is projected to operate at something like a $20 million deficit.
DeleteSo it looks Doan is going to base his decision on the petition of Mr. Cobb & Co. His agent said that the new deadline for when he'll start talking to other teams is July 16th (i.e. the deadline Cobb stated is the actual deadline for when the signatures are due with the city).
ReplyDeleteCobb's petition was submitted to Glendale today. Stay tuned tomorrow for my analysis of the submission.
DeleteI'll be keeping an eye out for that. Not sure Doan is planning to learn. As you said, if he's looking for clarity on the team's future he won't get it for a while. I think he'll leave just like Whitney (who cited the uncertainly as one of his reasons for leaving), which is unfortunately for the Coyotes and their fan base.
DeleteThen you'll be very surprised to see my analysis tomorrow. I think that the clarity is coming, and soon.
Delete