The time may be running out on the Phoenix Coyotes. Both Commissioner Gary Bettman and the NHL, hope time is not running out. The NHL is doing everything in its power to keep the team in Glendale, AZ, and Gary Bettman has been taking a lot of criticism from the people of Canada, they claim he did not try this hard to keep the Jets in Winnipeg or the Nordiques in Quebec. However, there is hope for Canadian hockey fans. The Goldwater Institute, the watchdog group of the taxpayers, will file a lawsuit if the sale of the Phoenix Coyotes goes through with Chicago businessman Matthew Hulsizer. The commissioner is losing patience with the whole process. In a press conference on Tuesday in Glendale, Arizona he said, “Time is running out.” The National Hockey League will start look at other options for next season if the Phoenix Coyotes cannot stay in the city of Glendale.
Back in the fall of 2009, the NHL had purchased the Coyotes in U.S. Bankruptcy Court. In order for the sale to Matthew Hulsizer to be complete the city of Glendale must sell $116 million in municipal bonds. The bonds will be given to Hulsizer so he can buy the team in order to complete the transaction. The loan will be repaid by parking revenues and by addition taxes. However, the Goldwater Institute will claim in their lawsuit that the transaction will violate the Arizona Constitution. “The Constitution requires no Arizona government “shall ever give or loan its credit in aid of, or make any donation or grant, by subsidy or otherwise, to any individual, association, or corporation.”
The final step is getting bond-agencies to release the bonds so the city can give them to Hulsizer. The Goldwater Institute is holding their ground, and it will not let these bonds be sold. Mayer Elaine Scruggs who said in a press conference last Thursday, “The Goldwater Institute is warning bond-rating agencies not to sell the bonds.” If the Goldwater Institute does file a lawsuit, the city of Glendale is ready to file a lawsuit of their own against the Goldwater Institute, The countersuit is on the basis of the Goldwater Institute is interfering in the sale of a team, resulting in the potential of millions of dollars in future lost revenue.
The response of the institute to the mayor has been quick. President Darcy Olson is quick to put out in the Arizona Republic that “it would be wrong to give Glendale a free pass to break the state’s ban on government entities subsidizing private enterprise.” The Goldwater Institute wants to protect the taxpayers from giving up more money to fund a team that has lost tens of millions of dollars since they moved from Winnipeg back in 1995. In a time of economic crisis, cities, states and the tax payers can not afford to support the wealthy owners. A viable business needs to support itself.
The facts are clear. Mr. Hulziser will not put forth any more money than he agreed to in purchasing the team. The NHL will not put forth any money as well because they agreed to keep the team in the city for one more season if the city would pick up the tab for the more than $25 million in loses if the team cannot be sold. The city of Glendale, who barely passed a vote of 4-3, to sell these bonds, will not offer $100 million because there is a chance the Goldwater Institute will come after them. There will be a question of where the money comes from.
Are there any options that will help the Coyotes stay in Glendale or will the NHL before forced to relocate the team to another city. The last thing the Commissioner wants to do is move a team, but has it come to a point where he has no choice. The options may be to move a team to a Canadian city. There are many Canadians calling for another professional hockey team.