Coyotes say they gave money to arena to pay staff. But no one’s been paid yet
As sports leagues began shuttering in mid-March because of the COVID-19 outbreak, the Arizona Coyotes and Gila River Arena vowed to continue paying the arena’s part-time and hourly employees.
On Wednesday, in response to an inquiry from The Arizona Republic, the Coyotes said they had provided funds to the arena’s operator, ASM Global, this week to pay those employees, but they have not yet been compensated.
The Coyotes would not say how much they contributed to paying the arena’s employees or why the
contribution came nearly two months after the initial promise. Those affected are ticket takers, ushers and other employees who work on game days.
“These employees are not Coyotes employees,” the team said in a statement.
In a joint statement, the companies said: “We have full intention of upholding our commitment to our part-time employees, however, it has been a much more turbulent time than originally anticipated and are awaiting a decision from the league on whether or not the 2019-2020 season will be completed. We are working together to finalize our support plan that will be executed within the next 30 days.”
Later Wednesday, the Coyotes released a second statement to say the team “provided their agreed upon contribution to Gila River Arena this week.”
Kate Girotti, spokeswoman for the arena, declined to say how many employees have been affected or to answer other questions.
She said the arena has recommended that all of its part-time staff file for unemployment benefits.
Gila River Arena is part of an arena management company, ASM Global, that manages more than 300 venues worldwide. ASM on its website says it annually manages more than $500 million in contractually obligated income.
The Coyotes, owned by billionaire Alex Meruelo, last month furloughed half of the team’s staff through June 30, citing financial difficulties related to the pandemic.
Meruelo, who bought the Coyotes last year, owns Meruelo Group, a construction and real estate development firm, and casinos in Las Vegas and Reno, Nevada. Those industries have been among the hardest hit during the pandemic.
On March 16, the two companies issued a news release promising to pay their employees through the end of the National Hockey League’s regular season, on April 4. The announcement received widespread attention and expressions of goodwill from the public.
That announcement came four days after the NHL paused the 2019-20 season because of the new coronavirus.
The Coyotes, at the time, also promised to pay all Tucson Roadrunners parttime employees affected by the suspension of American Hockey League play. The team did not say whether those employees have been paid.
Meruelo in March said: “We pride ourselves on treating all our staff and players like they are part of our family. … I value my team members and am committed to making sure that everyone remains safe, secure and part of our great team.”
Dale Adams, general manager of Gila River Arena, at the time said: “We value all of our employees as they are the heart and soul of this venue. They are committed to delivering amazing guest experiences to our fans and we are equally committed to them. We want to ensure that everyone has the resources they need to continue to stay healthy during this time.”
The Coyotes have struggled financially with several owners since trucking magnate Jerry Moyes put the team into bankruptcy in 2009.
The team, which was competitive this season, has missed the playoffs every year since reaching the 2012 Western Conference Finals and has ranked among the bottom in NHL attendance.
As the Coyotes and arena have failed to keep their promises to employees, Phoenix’s other major sports franchises — the Phoenix Suns, Arizona Diamondbacks and Arizona Cardinals — have said they would try to continue paying employees as the economy has stalled during efforts to halt the spread of the new coronavirus.
The Diamondbacks charitable foundation has donated more than $1 million to those affected by the new coronavirus pandemic.