Deal
On April 13th, 2021, the Arizona Coyotes hockey team filed a breach of contract claim against the City of Phoenix for $2.3 billion. The claim is in response to the city’s decision to terminate the team’s arena lease agreement in July 2020.
The Coyotes had been playing in the Gila River Arena since 2003, but the team’s ownership group, IceArizona, had been trying to negotiate a new arena deal with the city since 2017. The negotiations had been ongoing for several years, but the city ultimately decided to terminate the lease agreement due to a lack of progress.
The Coyotes are now claiming that the city’s decision to terminate the lease agreement was a breach of contract and that they are entitled to damages for lost revenue and other costs associated with the termination. The team is seeking $2.3 billion in damages, which would be one of the largest breach of contract claims ever filed in the United States.
The Coyotes have argued that they have suffered significant financial losses due to the city’s decision to terminate the lease agreement. The team has also argued that the city has failed to live up to its obligations under the agreement, which included providing financial support for the team’s operations.
The City of Phoenix has yet to respond to the Coyotes’ breach of contract claim, but it is expected that the city will vigorously defend itself against the allegations. It is unclear at this time how the case will play out, but it is sure to be a long and drawn-out legal battle.
The Coyotes’ breach of contract claim against the City of Phoenix is a significant development in the ongoing saga between the two parties. It remains to be seen how the case will play out, but it is sure to be closely watched by sports fans and legal experts alike.
