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Goldwater Institute ready to file lawsuit against City of Glendale over Coyotes deal

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The threats and rumors are no more in Glendale, Arizona. The Goldwater Institute has been investigating and threatening litigation against the City of Glendale over their proposed deal with prospective Coyotes buyer Matthew Hulsizer. Goldwater appears ready to follow through with their plans to file a law suit against the city because they feel the deal violates the Arizona Constitution.

Illegal Curve has a copy of the letter filed by Goldwater Institute and with the way they’ve got their case laid out, their take on the deal that Hulsizer and the City of Glendale are working on is damning. Their contention with the $100 million dollar payout to Hulsizer is pointed.

The Goldwater Institute has determined the agreement violates two prohibitions of the Arizona Constitution, which requires 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 Goldwater Institute prevailed in a similar case against corporate subsidies last year in the Arizona Supreme Court.

The first part of the clause is violated by Glendale’s decision to provide its credit to make a payment to Mr. Hulsizer, who will use the proceeds to purchase the team. The city’s credit rating was lowered by Moody’s due to its debt overload, thereby increasing the cost of city borrowing. The second prohibition is violated because under the Arizona Supreme Court’s decision in Turken v. Gordon (the CityNorth case), Mr. Hulsizer is not providing roughly proportionate value for the payments he will receive from the city.

Rebekah Sanders of The Arizona Republic points out that Goldwater is waiting on Hulsizer to make the deal with the City of Glendale before proceeding with litigation. It’s as it always has been in this situation: A high-stakes staring contest.

The Glendale deal with Hulsizer hinges upon the sale of  $100 million in bonds which will be paid back through parking revenue. Of course, the amount of parking revenue you get also hinges upon the number of people driving to the game and the Coyotes attendance hasn’t exactly been stellar. Sales and excise taxes will also help generate revenue in which to pay back those bonds, but it’s difficult to see how it works out cleanly.

Goldwater Institute has been staunch in their beliefs that it won’t work out well and that the City of Glendale is being taken for a ride on the deal. After all, why should a city fork over millions of dollars to help a millionaire buy the team in the first place? We realize that the leverage is in Hulsizer’s favor as he’s doing Glendale a “favor” by buying the team and keeping an anchor tenant in Jobing.com Arena, but the City of Glendale bending the rules to give him more money to buy the team seems like quite the shady deal. Goldwater’s contention that the city would essentially be selling the parking revenue money back to itself also seems accurate.

Fuzzy math and curious wording sometimes works in deals with the government, but not every government has a dogged group looking over every piece of information to make sure their city doesn’t go broke in the process. Goldwater is either a fantastic governmental watchdog or the biggest bunch of spoil sports around. Coyotes fans are clearly in belief that they’re the latter. All that aside, it’s tough to see how Goldwater’s case isn’t flawed here.

If you’re thinking this will be the end game of all this, you’re wrong. Glendale has threatened to counter Goldwater’s lawsuit with one of their own against them for hindering the progress of the sale of the Coyotes. If Glendale does counter-sue and both sides cases being log jammed in the courts would likely point towards the NHL looking to sell the team to be rid of the headache. David Thomson and his True North group based out of Winnipeg, Manitoba is waiting in the wings patiently ready to purchase the team should the NHL look to move from Hulsizer and Glendale, Arizona.

Time is running out in Arizona for the Coyotes.

PHT Morning Skate: Sharks name stray cat after captain Joe Pavelski

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PHT’s Morning Skate takes a look around the world of hockey to see what’s happening and what we’ll be talking about around the NHL world and beyond.

–The stray cat that ran onto the ice prior to Game 1 between the Sharks and Preds has been named after Joe Pavelski. (Associated Press)

–Speaking of that black cat, here’s a mountain of pucks shaped like the cat. (The Score)

–When Lukas Head was younger, he played with Steven Stamkos and P.K. Subban. Here’s his story. (Toronto Star)

–Watch the highlights from yesterday’s game between the Stars and Blues. (Top)

–A look behind the scenes of the NHL draft lottery. (Canadian Press)

–Two-time Olympic gold medalist Sharon Szabados loves curing and the Oilers and she was forced to make a tough choice on Saturday. (Sportsnet)

Pascal Dupuis, who was named one of the Masterton Trophy finalists, is adjusting to retirement. (NHL.com)

Pavelski’s late goal helps Sharks grab 2-0 series lead over Preds

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The San Jose Sharks became the only team in the second round to jump out to a 2-0 lead in their series. The Sharks did it by beating the Predators 3-2 in Game 2 on Sunday night.

San Jose opened the scoring in the second period when Logan Couture buried a rebound by Preds goalie Pekka Rinne. Brent Burns took the initial shot from the point and extended his playoff point streak to four games.

The Predators finally got on the board at the 12:56 mark of the third period when Mattias Ekholm tied the game at one.

Here’s the goal:

Nashville’s good fortune didn’t last very long. Sharks captain Joe Pavelski gave San Jose a 2-1 lead less than five minutes later.

Pavelski also picked up two assists in the game. The 31-year-old has at least one point in six of his seven postseason games in 2016.

Joe Thornton then added an empty-netter in the final minute of play before Ryan Johansen scored with four seconds remaining.

Despite the loss, Preds head coach Peter Laviolette wasn’t too disappointed by the way his team played.

The Predators outshot the Sharks (39-25), they outhit San Jose (46-26), but they just couldn’t outscore them.

Like the old saying goes: “you’re not in trouble until you lose a game on home ice.” The Preds still haven’t done that, which means they’re not done yet.

The series now shifts to Nashville for Game 3, which will be played on Tuesday night.

Video: Marc-Edouard Vlasic saved by his visor after taking Shea Weber shot to the face

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It’s a scary night for players getting hit in the head with pucks.

After Brian Elliott was hit in the head by a Jason Spezza slapshot, it was Marc-Edouard Vlasic‘s turn to narrowly avoid disaster.

In the third period of Sunday’s game against the Predators, Vlasic took a puck to the face. The end result could have been catastrophic had Vlasic not had a visor.

You can see the incident by clicking the video at the top of the page.

It’s nice to see that Vlasic was in a joking mood after the game:

Hockey Twitter breathed a collective sigh of relief after Vlasic got back up:

It sounds like Olli Maatta won’t be ready for Game 3

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You’ve all seen it by now (if you haven’t, click the video at the top of page). Penguins defenseman Olli Maatta was forced to leave Game 2 against the Capitals after taking a late hit from Brooks Orpik. Not only was the hit late, but Orpik also caught Maatta in the head.

After the Penguins’ optional skate on Sunday, Penguins head coach Mike Sullivan wasn’t optimistic about Maatta’s chances of playing in Game 3 on Monday night.

“Olli’s being evaluated as we speak, so I don’t have any real update as far as his status is concerned,” Sullivan said, per the Pittsburgh Post-Gazette. “He’s being evaluated today, we’ll probably have more information in the morning.

“I don’t have a lot of sense of his availability. I’m probably not optimistic, though.”

After the game, Capitals coach Barry Trotz stood up for his defenseman.

“We’ll let the league handle it,” Trotz said, per CSN Mid-Atlantic. “If you know anything about Brooks, he plays hard, he plays clean. He’s not a dirty player.”

And the league certainly did handle it, as they suspended Orpik for three games.

Related:

Penguins coach takes issue with late, high Orpik hit on Maatta