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.

Holtby ‘wasn’t as sharp as he can be,’ says Trotz

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Presidents’ Trophy winners once again in the regular season, the Capitals once again face an uphill climb if they are to advance beyond the rival Penguins and the second round of the playoffs.

What began with a strong first period for the Capitals in Game 2, albeit without a reward on the score board, faded into a frustrating 6-2 rout, as the Penguins took a commanding 2-0 series lead as it shifts back to Pittsburgh for a pivotal Game 3 on Monday.

Braden Holtby was pulled after the second period. He gave up three goals on 14 shots, while his opponent at the other end, Marc-Andre Fleury was brilliant with 34 saves.

“He’ll tell you that he can be better. He’s a straight up guy and he will be. I was just trying to change the mojo,” said Capitals coach Barry Trotz of his decision to sit Holtby.

“I thought some of the goals, he wasn’t as sharp as he can be for us. He’s a game-changer for us. So when he didn’t change the game, I just looked to change the mojo a little bit there. That’s all. Braden’s our backbone. He has been all year. We’ve got to find some goals for him, too. We can’t just put it on Braden Holtby.”

Now in a deep but not insurmountable hole against the defending Stanley Cup champs, the Capitals reportedly held a players’ only meeting following this latest defeat.

After failing to open the scoring in an otherwise dominant first period, Washington surrendered three goals in the second, as the Penguins broke it wide open with their transition game, led by two great plays from Sidney Crosby.

“We can’t get frustrated. I think that would be our biggest mistake is to get frustrated right now,” said T.J. Oshie, before expanding on the meeting between the players.

“It was things that people need to say and things that some people need to hear. We were very together with what we said. I don’t need to go into details. Sometimes in our game … you need to hear from your teammates more than your coach. And tonight was one of those nights.

“It was the players in here and what was said is what needed to be said.”

We’ll find out Monday if what was said actually has any impact on the ice.

Penguins rout Capitals to take commanding series lead

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The Washington Capitals are in trouble. Against the Pittsburgh Penguins.

Again.

Despite a dominant first period, at least in terms of shots on Marc-Andre Fleury and puck possession, the Capitals saw this game go sideways in a hurry during the second period, on the way to a 6-2 loss to the Penguins in Game 2.

Washington is now in quite a hole, trailing its nemesis 2-0 in this second-round series.

Last year, Matt Murray stymied the Capitals. Though it’s only been two games this year, Fleury has stepped up in the absence of the injured Murray and given the Penguins solid goaltending and frustrated a dangerous Capitals lineup.

After withstanding the storm of pressure from the Capitals in the first period, the Penguins broke this game open with a trio of second-period goals. It started with a shorthanded goal from Matt Cullen, and later continued with a beautiful goal from Phil Kessel and then Jake Guentzel‘s sixth goal of these playoffs.

That led Barry Trotz to take Braden Holtby out of the game, after he gave up three goals on 14 shots, putting in Phillip Grubauer to begin the third period. The Penguins continued the onslaught.

For the Penguins, there are some injury concerns to keep an eye on.

Patric Hornqvist left the game in the first period after blocking a shot around his foot or ankle. He didn’t return. Ron Hainsey had to go to the locker room late in the third period after taking an Alex Ovechkin shot up around the head.

Game 3 goes Monday in Pittsburgh.

‘I wasn’t good enough,’ says Lundqvist after double OT loss to Senators

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The task wasn’t impossible, but certainly daunting.

The Ottawa Senators needed five goals on Henrik Lundqvist just to send Game 2 into overtime.

The Rangers goalie had been spectacular for most of this post-season entering Saturday’s contest, but the Senators, led by a sensational four-goal performance from Jean-Gabriel Pageau, found a way to break through for a 6-5 double overtime win to take a 2-0 series lead against New York.

They did so on just 34 shots through almost 83 minutes against Lundqvist.

“I wasn’t good enough,” said Lundqvist, per the New York Daily News. “Coming up with the extra save there in the end, that’s my job. Even though it’s tough plays on deflections, I’ve got to find a way.”

On three occasions, the Rangers held a two-goal lead. That includes with under five minutes remaining in regulation. They even had a pair of shorthanded goals. But they couldn’t hang on, as Pageau scored twice in the final 3:19 of regulation to record his hat trick.

That set the stage for the eventual winner, as he beat Lundqvist over the left shoulder with a shot from his off-wing on a two-on-one rush.

With the Senators in control, the series returns to New York for Game 3 on Tuesday and Game 4 on Thursday.

“We played well enough to win this game, there’s no question about it,” said Lundqvist. “It’s really tough to lose this one. Clearly they’ve gotten the bounces here in the first two games.”

Capitals’ Holtby begins third period on the bench, Grubauer takes over in net

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Braden Holtby began the third period of Saturday’s Game 2 on the bench, giving way to Philipp Grubauer.

The Washington Capitals fell behind the Pittsburgh Penguins 3-1 after two periods, with Holtby allowing three goals on just 14 shots. It will be interesting to hear the reason for this decision from coach Barry Trotz following the game.

The Capitals had dominated on the shot clock, but gave up a pair of quick goals to fall further behind Pittsburgh in this game, while trailing in the series 1-0.

Phil Kessel — on a great play from Sidney Crosby — and Jake Guentzel scored 3:10 apart to give Pittsburgh a two-goal lead.