Gila River Arena Faces Uncertain Future

The NHL’s Phoenix Coyotes are reportedly looking for a new arena, leaving the fate of its current home, the Gila River Arena in Glendale, Ariz., uncertain.

Paul Kucher – Gila River Arena
in Glendale, Ariz. 

Team owner Andrew Barroway said the team is pursuing a new arena but will stay in Arizona, according to the Arizona Republic. Team president and CEO Steve Patterson added that the team is open to discussion with potential partners.

Reports of the team leaving arrive just as the Gila River Arena begins to recover from massive net losses.

The arena’s financial woes have steadily improved since 2015, when the city hired AEG to manage the facility instead of the Coyotes, who are now just a tenant. It recently had its best season since 2010, but still saw a net loss of $4 million in the 2017 fiscal year.

It’s a step forward from the net loss of $10 million the venue suffered in 2015, and a major improvement from the net loss of $22.8 million in 2011.

Glendale is also still paying off the $180 million it borrowed to build the 14-year-old arena, and will continue making payments until 2033.

Arena Manager Dale Adams told the paper that AEG is currently in talks with the team to stay.

“I don’t know if the Coyotes are going to stay, leave or do anything else,” Adams told the paper. “I’m assuming they’re staying for the time being because I think that’s what we have to do; that’s what’s in front of us and I have no indication to feel like they are going anywhere else.”

Glendale City Manager Kevin Phelps hopes the team and the city can reach a long-term agreement, but he thinks the arena can go on if the Coyotes decide to leave.

He told the paper that concerts are more lucrative than the $500,000 that the Coyotes pay annually to the city, in addition to small portions of revenue from suite rentals. He said the city would focus on booking non-sports events if the team leaves.

Adams has already begun booking as many events as possible, and the efforts seem to be paying off. The arena sold more tickets in 2017 than it ever has, and received its second-highest ticket revenue since 2010.

The two-dozen events booked for this year, including performances from Tim McGraw to Coldplay, sold 180,348 tickets and raked in about $4.2 million.