A decision by the city of Glendale, Ariz., to cancel its contract with the Arizona Coyotes is a credit positive for the sports-laden Phoenix suburb.
Glendale's city council voted last week to exit a deal that obligated the payment of $15 million a year to the Coyotes to manage the city-owned arena. Moody's Investors Service on Monday called the move a credit positive, because it reduced Glendale's professional sports-related costs.
The Coyotes, however, did not take the decision lightly. On Friday, the team's owners, IceArizona, secured a temporary restraining order to block the cancellation. Last week, the team's attorneys threatened to sue the city for $200 million in damages.