By Alex Silverman – Sports Business JournalGary Bettman stood on a stage at the opening of a new arena, and praised the team that would soon call the building home for surviving an arduous journey that resulted in a state-of-the-art facility and, at last, peace of mind.
In the meantime, the Coyotes have entered one of the most unusual arrangements in modern professional sports history, one that has its staff pushing — and potentially succeeding — to make the best of a tricky situation. For at least the next three seasons, the club will play home games at Mullett Arena, a new 5,000-seat facility on the campus of Arizona State University that just happens to be the only Division I hockey program in the American Southwest.
“The team’s internal research makes clear that the majority of Coyotes premium ticket holders and corporate sponsors live and do business on the Valley’s east side,” Bettman wrote in a 2017 letter to Arizona lawmakers. “The overwhelming number of hockey players and ice rinks are in the East Valley.” The Coyotes planned to continue playing in Glendale on a year-to-year basis while seeking to build a permanent home in Tempe. Those hopes were dashed, however, when Glendale decided last year that it wouldfollowing the 2021-22 season, saying it would prioritize “larger, more impactful events and uses of the city-owned arena.” That left the team with few options for a temporary home, particularly with the Suns unwilling to share Footprint Center on even a temporary basis.
Several industry executives with knowledge of the arena business expressed skepticism about this claim. To compensate for the smaller number of tickets to sell, the team has raised prices significantly. Gutierrez said the average ticket price in Glendale was in the $50 range, while the average lower bowl ticket cost was around $90. At Mullet Arena, where all 13 rows of seats are considered lower bowl, the team is selling tickets for an average of $174. That’s slightly higher than the NHL average for lower bowl seats, which Gutierrez said is $150.
Sakiewicz said the team renewed all but one of its existing corporate sponsors, including some at higher rates, and will have some unspecified new partners this season.
The most challenging revenue streams to salvage in the smaller building will be premium seating and concessions. Mullett Arena contains 22 suites, about a quarter of those available in Glendale, and there will be far fewer fans to purchase food and beverage and merchandise. Coyotes merchandise, however, will be available in ASU’s on-campus bookstores.
Guitierrez said the team expects the city council to vote on whether to approve the deal sometime this fall — a rezoning hearing related to the project is scheduled for November — and called it the last major hurdle to getting shovels in the ground. Due to the project’s proximity to Sky Harbor Airport, however, the city of Phoenix has expressed opposition to residential development at the site, which it says violates the terms of a longstanding agreement between Phoenix and Tempe.