Corrections and Clarifications: A previous version of this article was incorrect about an event at the arena.

The Arizona Coyotes have a new majority owner in billionaire entrepreneur Alex Meruelo, but views on a long-term commitment to Gila River Arena in Glendale apparently haven't changed.

At a news conference last week, Meruelo said he's committed to keeping the Coyotes in Arizona — but he didn't say the same about keeping the team in Glendale, calling it "a difficult situation."

The reasons he ticked off aren't new: The team loses money there. The fan base is elsewhere in the Valley. Corporate sponsors are harder to come by in Glendale. And the team doesn't have a long-term lease.

A Glendale spokeswoman told The Arizona Republic that city leaders hope to sit down with Meruelo "to see how we can help him achieve his goals of success."

Glendale and the Coyotes' relationship splintered four years ago after the financially struggling city prematurely ended the team's $15 million a year arena management contract, in favor of hiring an arena manager for a third the cost.

But the city that borrowed $180 million to open the arena in 2003 has a lot to lose if the team leaves. The Coyotes bring a stream of hockey fans and spending to the adjacent Westgate Entertainment Center. Glendale relies heavilyon that sales tax revenue to cover the arena debt payment, which is $10.6 million this fiscal year.

The arena won't be paid off until 2033. Meanwhile, the Coyotes are on a year-to-year arena lease and continue to look for another arena option in Arizona.

NHL Commissioner Gary Bettman said in June that Meruelo is "committed" to finding a new arena in Arizona, adding that Glendale's arena "is not viable long-term."

So far the team hasn't come up with another option as public opinion on funneling taxpayer dollars into sports stadiums has deteriorated — especially in Arizona.

Whether a miracle off ice could keep the team in Glendale remains to be seen. The city expects to schedule a meeting with Meruelo soon.

City manager: 'Committed to working with' Coyotes

The new majority owner may be a chance for Glendale officials to rebuild the relationship between the city and the team.

Glendale for years stepped up to support the Coyotes, including paying the National Hockey League $25 million in 2011 and again in 2012 to manage the arena as the league searched for a new owner. But the relationship fractured in 2015, when the city voided the team's arena management contract, effectively ending a subsidy to the team.

At the time, Glendale was navigating its way out of the recession with sports debt that weighed heavily on the city's bottom line.

Glendale's top executive, mayor and most city council members aren't commenting on Meruelo's recent thoughts about the arena. Many gave the same reason: They want city staff to have the chance to meet Meruelo before they say anything.

In a video posted on the city's Facebook page, Glendale City Manager Kevin Phelps, with a Coyotes cap in hand, welcomed Meruelo.

"We are committed to working with them to do everything possible to make them a success here in Glendale and the state of Arizona," Phelps said.

Challenges with attendance, location

The challenges that Meruelo listed for the Coyotes' success at the arena are similar to what Coyotes officials have been saying for years.

The location has been a challenge since the Coyotes moved to Glendale, said Doug Moss, who was president and chief operating officer of the franchise from 2003 to 2010.

Moss said it was hard at the time to get fans out to the West Valley, and the low attendance made it harder to attract sponsors.

There's a large hockey fan base in the East Valley, Moss said, and many of the home games are on week nights, so it's hard for fans to get off work early enough to make it to the game on time. Combine this with the Coyotes' record at the time, he said, and fans weren't inspired to make the drive.

"The team has to be really, really good on the ice to compel people to go," he said.

Current team executives seem to get that.

"The most important thing for us right now ... is achieving our core goals. Those are building hockey fandom in Arizona, building a competitive team on the ice, and positively impacting our community. Ultimately, we have to figure out our long-term arena solution. But that problem is solved by achieving those three goals I laid out," Coyotes current President and CEO Ahron Cohen told The Republic last month.

The Coyotes also should soon benefit from the opening of South Mountain Freeway later this year. The extension of Loop 202 is expected to improve travel time between the east and the west Valley.

Attendance at Coyotes games has been, and still is, among the lowest of the NHL. Last season, it ranked third to last, with an average of 13,989 fans per game. The arena can accommodate just over 17,000 fans.

The low attendance during Moss' day made it hard for the team to attract sponsors, he said, when other stadiums in the Valley have larger crowds.

Generally in the Phoenix area, Moss said the fact that every team plays at its own venue presents a challenge, because it creates more competition for sponsors.

He pointed out how, in many other large markets, such as Boston, Dallas and Detroit, professional hockey and basketball teams play in the same space.

Phoenix considered a combined basketball/ hockey arena downtown, or renovating Talking Stick Resort Arena to accommodate hockey during other renovations, but ultimately decided it was too expensive.

Moss said the speculation of whether the Coyotes would stay in the arena long term — which began back in Moss' days — also didn't help when trying to sell season tickets.

"People just weren't sure if they would be there," he said.

The Republic recently reported ticket sales have jumped as the team finished just two points out of a playoff spot last season, and made solid acquisitions in the off-season.

What can Glendale offer?

Despite the arena being 16 years old now, Moss considers it a beautiful arena. The way it's built with open concourses and steep seating, he said, everyone has a good view of the ice.

Still, professional sports venues are often considered old after a couple decades.

Last year, the city partnered with arena manager AEG and the Coyotes to buy a larger video scoreboard for the arena. The city put in $1.55 million.

Phelps said earlier this year that the arena could benefit from reconfigured suites, more club areas, enhanced food and beverage service and more team stores.

"There are a number of things that could be done to help the revenue picture," he said at the time.

Glendale will have to decide how much it is willing to keep investing to stay competitive with other NHL arenas, said David Swindell, an economist and director of the Center for Urban Innovation at Arizona State University.

"You have a lot of sunk costs in that facility right now," he said. "Does the city take the risk of losing the team, or continue to make investments?"

Swindell also said that it's hard for the arena manager to plan programming when the Coyotes are on a year-to-year lease.

"If the team leaves, we really have to think hard about how we can reprogram the utilization of that facility," he said. "Not just that facility, but the entire Westgate complex."

Westgate 'stronger than it has ever been'

With about 40 home games a season, the Coyotes provide a consistent stream of visitors to the arena and Westgate,the restaurant and entertainment complex that opened next door as part of the original Coyotes deal.

By comparison, the Arizona Cardinals play about eight games a season at nearby State Farm Stadium.

AEG has brought in more concerts, more people and higher ticket sales to the arena in recent years.

The Arizona Rattlers will call the arena home for its upcoming Indoor Football League season, while Talking Stick Resort Arena is being renovated.

Some restaurant owners and managers at Westgate say they love having the Coyotes next door, and if the team left it would significantly hurt their businesses.

But some also say that large non-hockey events happening at the arena bring the same crowds to Westgate as Coyotes game, and they are encouraged to see events at the arena and Westgate increasing.

Westgate will "continue to do very well regardless of the tenant situation in the arena," said Dan Dahl, director of real estate for YAM Properties, owner of Westgate.

Dahl says that Westgate is stronger than it has ever been.

Asked how much Westgate businesses rely on Coyotes for revenue, Dahl said that YAM Properties doesn't release business revenue information.

Jason Bond, general manager of State 48 Funk House, which opened in Westgate last fall, said the games provide a major boost.

Bond just doubled his staff to prepare for the football and hockey season.

Justice Briand, manager at Saddle Ranch, said hockey games keep the restaurant packed, consistently.

Toni Stork, owner of Shane's Rib Shack, said the games bring people in from across the Valley who haven't been to her business before.

But she also said the restaurant sees just as much of a boost during other events at the arena and at Westgate, and there are more events and more people coming each year.

Reach the reporter at jen.fifield@azcentral.com or at 602-444-8763. Follow her on Twitter @JenAFifield.

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