Wednesday, May 12, 2010

Really bad ideas in local finance

The city of Glendale, Arizona has pledged up to $25 million to the NHL in order to keep the local hockey team around for next season. In a city of about 250,000, that works out to about $100 per person for one year of hockey in the desert. The city already built the team's arena about 15 years ago. The team is currently owned by the NHL because it went bankrupt last year, and few people are interested in buying it. It is such a good investment that:
The city has already guaranteed each of the potential buying groups millions of dollars annually to the buyer through creation of the Community Facilities District. Both proposals would change the team name to either the Glendale Coyotes or the Arizona Coyotes, with the NHL's approval, and would keep the team in Glendale.

The franchise hasn't turned a profit since moving to Arizona and is expected to lose at least $20 million this year.

What on earth are these local officials thinking? No reasonable family or business should even consider moving to Glendale because the city will go broke chasing these awful policies.

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