PHOENIX – The Goldwater Institute confirmed in a statement Tuesday it will legally challenge the sale of the NHL’s Phoenix Coyotes to Chicago businessman Matthew Hulsizer if the proposed deal is completed.
The watchdog group has been threatening to challenge the deal, which it deems unconstitutional under Arizona law, for months.
At issue is the US$116 million in bonds the City of Glendale must sell to provide Hulsizer with money to complete the sale, believed to be for $170 million.
The Goldwater Institute claims the agreement violates the Arizona Constitution, which states that 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 NHL currently owns the team, which it purchased in U.S. Bankruptcy Court in the fall of 2009.
The Coyotes have lost tens of millions of dollars virtually every season since moving from Winnipeg in 1995.