Former Coyotes arena in Glendale gets a new name
The Arizona Coyotes' former home in Glendale has a new name, Desert Diamond Arena.
It's the third naming rights deal for the city-owned arena since it opened in 2003. The venue was first christened Jobing.com Arena and then Gila River Arena.
The Gila River sponsorship was with the Coyotes and ended when the hockey team's 19-year run in Glendale came to a close earlier this year.
The city didn't renew its lease with the team, which is negotiating to build an arena in Tempe. Glendale officials plan to update the arena and focus on concerts and other events.
Glendale City Manager Kevin Phelps wouldn't say how much Desert Diamond Casinos & Entertainment is paying to have its name across the arena near Loop 101 and Glendale Avenue. He said the deal was struck by the arena's manager ASM Global, not the city.
The casino owned by the Tohono O'odham Nation off Loop 101 and Northern Avenue opened in 2015 and expanded in 2020.
Desert Diamond Casino made a huge investment in the entertainment district as an anchor tenant to the north,” Phelps said. “They are really excited about the growth of the entire entertainment district.”
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City mum on cash from naming rights
The naming rights negotiations have been in the works for about five months, but really ramped up in the last 90 days, Phelps said.
The agreement is a 10-year naming rights deal with an option to extend another 10 years, he said.
The naming rights deal was a private agreement between Desert Diamond Casinos & Entertainment and ASM Global, Phelps said, declining to disclose the value of the deal.
The city inked a deal with the arena manager nearly 10 years ago, and extended it in 2018. The city pays the company $5.6 million annually to manage the arena, which is offset by shared arena revenues.
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"Our approach is to be as integrated with the Westgate Entertainment District as we can be," Mike Bean, CEO of the Tohono O’odham gaming enterprise, said. "Our view is to work together versus compete for business."
Having the casino in the area and integrating with the rest of the district complements the offering already in the area, including State Farm Stadium, the Tanger Outlets, the shopping and dining at Westgate and other amenities, he said.
"For us it seems like the perfect opportunity and fit," Bean said, adding that without the Coyotes in the arena, there will be more chances for concerts and other events that now will not have to be scheduled around the hockey season. "We see so many synergies and opportunities."
Major acts already scheduled
A city-commissioned report last year said adding more special events should make the arena more lucrative than it was as a professional sports venue.
The city would need to come up with 20 more events attracting crowds of at least 10,000 people to make up for the losses in Coyotes-related spending at Westgate, according to the report. Phelps said the arena had a record-breaking year in 2021 for revenue from non-hockey related events.
Some of the upcoming events scheduled at the arena include Alan Jackson, Roger Waters, Professional Bull Rider Teams, Pepe Aguilar and Ateez. In the coming year, Rage Against the Machine and Carrie Underwood are booked to play there.
The city also plans to revamp the arena with concerts and non-hockey events in mind. The city and ASM hired HOK, a global design company, to assess the arena and identify areas where renovations could be made.
Now, ASM and HOK are going through the list of potential changes to zero in on a project list, Phelps said. The city wants to make additions and renovations that will increase revenue opportunities, like food and beverage upgrades, merchandising and premium seating, the city manager said.
Glendale and ASM will meet later this year to discuss the timeline and costs for the renovations, but Phelps said they want to work the calendar around major construction, so events can still take place during construction, but could have fewer ticket sales or have portions of the building closed.
Without knowing the exact scope of projects, Phelps said it is difficult to estimate how much time it will take to complete the renovations. The city is expected to identify projects early next year and secure a contractor to begin construction, he said.
$1.5B in private investment planned around Westgate
The area around the arena in the Westgate Entertainment District has seen a major influx of private investment, Phelps said.
To the south, VAI Resort is under construction on 60 acres of land and will include the state’s largest hotel, with more than 1,200 rooms. The development will include a Mattel-branded theme park and other rides, a 7-acre lagoon with sandy beaches, a concert stage, restaurants and shops.
Desert Diamond also has plans to add hotel and resort to its site. In total, Phelps said, there is about $1.5 billion worth of private investment planned for the area around Westgate.
“Desert Diamond is all in with us building this thriving district,” Phelps said. “The value is over and above the value of the naming rights deal.”
That is a shift from when the casino was first announced in 2009. The Tohono O'odham Nation faced legal challenges from the city, state and other tribes.
The casino opened a temporary location in 2015 and the $400 million, 1.2 million-square-foot casino opened in 2020. Tribal leaders have long talked about a second phase that would add a resort and convention space, but a timeline has not been announced.
Reach the reporter at cvanek@arizonarepublic.com. Follow her on Twitter @CorinaVanek
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This article originally appeared on Arizona Republic: Gila River Arena in Glendale has a new naming rights deal
