Coyotes owner says team intent on staying in Arizona: 'We're not leaving'

GLENDALE, Ariz. - Just when the Arizona Coyotes seem to have found stable ground, a new report or rumor surfaces, leading to more speculation that the team will leave the desert.

The latest: The team is in breach of its arena lease agreement with the city of Glendale.

All part of the territory of owning a team that spent four years without an owner, even if this report caught them a little off-guard.

''It does get frustrating and unfortunately we do tend to be the whipping boy that tends to be isolated,'' Coyotes co-owner Anthony LeBlanc said Tuesday from Gila River Arena. ''People want to sit and speculate, but we're not leaving.''

The Coyotes have been through similar situations numerous times since former owner Jerry Moyes took the team into bankruptcy in 2009.

The team spent four years being run by the NHL, with potential new owners appearing then falling away, along with plenty of speculation the team would be relocated.

IceArizona, headed by LeBlanc and George Gosbee, seemed to give the Coyotes stability when it bought the team in 2013, but a decision to sell a 51 percent stake to Philadelphia hedge fund manager Andrew Barroway last year led to more relocation speculation.

IceArizona said at the time the inclusion of Barroway would only enhance the team's finances and foothold in Arizona, a statement that so far seems to have held true.

The latest development surfaced when members of the Glendale City Council reportedly were concerned that IceArizona had breached its 15-year, $225 million arena lease with the city by using the $15 million a year it receives from Glendale to pay down debt incurred when the group purchased the team.

IceArizona no longer banks with the lender, Fortress Investment Group, so even if it was in breach of the agreement, the issue has been remedied, according to LeBlanc.

''To me, it was out of left field, it was silly,'' LeBlanc said. ''As we explained yesterday: `Guys, we're partners. We've got to work together and the last thing this franchise needs is headwind.'''

LeBlanc and Barroway met with Glendale officials on Monday to discuss any issues with the lease agreement and finding ways to generate more non-hockey revenue at the arena.

City officials have been concerned about the cost of running the arena - $15 million per year for 15 years - but LeBlanc said the team's impact goes well beyond ticket sales.

In figures released to The Associated Press, the Coyotes say they have generated more than $6.6 million in direct revenue to Glendale over the past year: $2,800,000 from ticket surcharges; $1,500,000 from direct sales taxes; $905,000 from parking; $500,000 in rent; $420,000 from a new naming-rights agreement; $522,000 for reimbursed public safety.

The Coyotes also estimate an additional $2.5 million in revenue to the city through an increased sales tax at the neighboring Westgate Entertainment District and the additional people the team brings to the area. LeBlanc added that doesn't include the $2 million the team spent to upgrade food and beverage offerings along with clubs inside Gila River Arena last year nor the $2 million in planned technology upgrades this year, including public Wi-Fi.

''Their net operating expense to operate the arena is less than $6 million,'' LeBlanc said. ''When they were looking at options when we did our deal two years ago, the number they had in their mind if there was no hockey team, the number they had to budget was $6.5 million. We're below that, we're already below that.''

LeBlanc noted that the benefit would only increase since the figures were only through the early part of the fourth quarter of the fiscal year.

He also expects it to rise as the team gets better.

Arizona suffered through a dismal 2014-15 season and is rebuilding for the future. The Coyotes have some talented young players in their system and have the No. 3 overall pick in the NHL draft later this month.

It's likely going to take time for Arizona to become a contending team, but once it does, the fans should follow. The Coyotes became the toast of the desert during their run to the 2012 Western Conference Finals and LeBlanc can envision them following in the footsteps of the Tampa Bay Lightning, a once-moribund team now playing for the Stanley Cup in a city that's become hockey mad.