Goldwater Institute Will Sue Over Glendale/NHL Coyotes Deal

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So much for that "deal."

Just days after Glendale and the NHL agreed to a $25 million deal to keep the Phoenix Coyotes in Jobing.com Arena for one more year, the Goldwater Institute tells New Times it will file a lawsuit to invalidate the agreement.

Le Templar, a spokesman for the Phoenix-based libertarian think tank, said the suit will allege that the Glendale City Council illegally granted its authority to City Manager Ed Beasley, allowing him to ink a deal without council approval.

The agreement would give the NHL up to $25 million in taxpayer money to subsidize operating losses.

The NHL became the owner of the franchise last year after the team, under owner Jerry Moyes, filed for bankruptcy -- and the hockey league refused to sign off on a new owner, Jim Balsillie, who wanted to move the team to Canada.

The city has been negotiating with two groups hoping to purchase the team, Ice Edge Holdings and a team led by Chicago White Sox owner Jerry Reinsdorf. But so far neither has been able to reach a deal, which may leave the NHL holding the bag for at least one more season.

The Goldwater Institute previously sued Glendale in 2009, alleging violations of the state's public records law. Under the suit, Glendale is supposed to turn over public records to Goldwater soon after their creation.

But Templar said that Goldwater hasn't received a single piece of documentation since September -- which seems absurd considering how actively the city has been negotiating with the NHL, Ice Edge, and Reinsdorf.

After months of silence, Glendale recently turned over a few documents to the judge handling the case, Templar says. But the city is still fighting to keep them under seal and blocked from public view.

Templar said it's still unclear whether Goldwater will bring the new action against the city as part of the 2009 lawsuit, or whether it will file an entirely new suit.

Regardless, he said, litigation over Tuesday's deal with the NHL is certain.

"We'll be pushing to file soon," he promised. Glendale, consider yourself warned.

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Anon
Anon

I love the logic behind GWI "We will save the taxpayers from a $100000000 investment that may get a return and run a team that has tried very hard to stay in PHX out of town. Then we have a nice arena sitting empty all year costing us $500000000.

The Yotes are finaly a good team ready to create a fanbase and now we let them go.

Bob
Bob

Glendale needs to cut its losses with the Coyotes. The demographic is completely wrong: Glendale and expensive hockey do not mix. The arena should have been in Scottsdale or downtown Phoenix.

The Coyotes have made nothing but bonehead player acquisitions and trades over the years they have been here. Daniel Briere is too small for the NHL: huh? Also, they should have built two more ice rinks in Maricopa County to foster a fan base.

We need to keep the Coyotes here, but NOT in Glendale. Glendale is a house of cards. Take away the 40+ home games and the entire Westgate area WILL collapse. But ill-conceived plans should not be subsidized.

Kev
Kev

GWI needs to just back off. The city council has approved this, an agreement has already been made, and the bonds are just waiting to be sold, but these idiots at GWI keep threatening to sue, making it near impossible to sell these bonds. If GWI is going to sue the city over this, they should just do it and stop threatening to sue. At least that way, we as taxpayers will get to see in a court of law, whether they actually have a minute point with what they are saying, or if they are just blowing smoke.

As the old saying goes, Do your business or get off the pot!

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