Despite repeated pleas to let the sale of the Phoenix Coyotes to Matthew Hulsizer go through, the Goldwater Institute says it is still opposed to the terms of the sale and would file a lawsuit to block the process, according to TSN.ca.
The institute issued a statement Monday in response to a television interview Hulsizer gave Sunday to Fox Sports Arizona, in which Hulsizer appeared to make concessions. The group is opposed to the proposed sale, saying it violates Arizona law. The city of Glendale would contribute $100 million worth of proceeds from a municipal bond sale to help Hulsizer purchase the franchise from the NHL for $170 million.
"The offer recognizes the significant risk to taxpayers under the current deal and to that extent is a positive development," Goldwater Institute president Darcy Olsen said in a statement. "Regrettably, however, the proposal fails to remedy the core legal violation at issue, leaving the expensive taxpayer gamble intact."
The NHL and Glendale have said that a sale needs to occur soon if the team is to remain in its current home. The threat of a lawsuit has held up the bond sale and, consequently, Hulsizer's purchase of the team.
"The Goldwater Institute has recommended that Mr. Hulsizer use his resources to buy the team and hold taxpayers harmless," Olsen said in the statement. "In a less than perfect compromise, Mr. Hulsizer could also protect taxpayers by personally guaranteeing the full repayment amount of the bonds."
Hulsizer said Sunday that he would guarantee $75 million of the bonds sold by Glendale.
The Goldwater Institute also is concerned about the financial viability of the franchise remaining in the Phoenix area. The team will reportedly lose about $40 million this year.
"Glendale taxpayers have been given no protection against a future team bankruptcy," said the Goldwater statement. "If the team goes bankrupt again (former owner Jerry Moyes filed for Chapter 11 reorganization in 2009), taxpayers will assume the full cost of bond repayment?this is on top of what taxpayers are already paying for the construction of Jobing.com Arena. Any restructured deal should legally protect taxpayers from liability for the bond repayment if the team fails again."
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