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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.

McLellan calls out ‘red-rotten’ performances after loss in Philly

Edmonton Oilers head coach Todd McLellan stands on the bench behind Connor McDavid, left, and Ryan Nugent-Hopkins during the second period of a pre-season NHL hockey game against the Vancouver Canucks in Vancouver, British Columbia, on Saturday, Oct. 3, 2015. (Darryl Dyck/The Canadian Press via AP)
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The Oilers blew a pair of two-goal leads in last night’s 6-5 loss to the Flyers and, not surprisingly, head coach Todd McLellan wasn’t happy with a number of performances.

“If you score five, you should be able to win,” McLellan said on Friday, per the Oilers’ Twitter account. “There were some individuals who were red-rotten.”

It’s not hard to speculate who McLellan was referring to.

Defenseman Oscar Klefbom scored his fourth goal of the year, but was on the ice for five of Philly’s six goals, and finished minus-4. Ryan Nugent-Hopkins was minus-3 with three giveaways, and went scoreless.

McLellan was also displeased with his club’s lack of discipline.

“One of the things we didn’t want to do was put them on the power play, and we put them on the power play continually,” he said following the game, per NHL.com. “Whether they score or not — I thought our penalty-killers did a tremendous job, [but the Flyers] gain a lot of momentum and energy and belief off of that.”

Rookie Jesse Puljujarvi took a hooking and holding penalty in a 10-minute span in the first period. The Flyers were unable to capitalize on either power play opportunity, but did seem to generate some energy — as McLellan alluded to — and Puljujarvi was a virtual non-factor for the remainder of the night, finishing with just 7:51 TOI.

The Oilers are back in action tonight in Minnesota, and are still atop the Pacific Division, so there’s hardly a feeling of panic. That said, they have surrendered 10 goals in their last two games.

Related: McDavid accuses ‘classless’ Manning of injuring him on purpose

Darryl Sutter was none too pleased with the Kings last night

LOS ANGELES, CA - APRIL 22:  Darryl Sutter of the Los Angeles Kings reacts as Patrick Marleau #12 of the San Jose Sharks is awarded a penalty shot during the second period of Game Five of the Western Conference First Round in the 2015 NHL Stanley Cup Playoffs at Staples Center on April 22, 2016 in Los Angeles, California.  (Photo by Harry How/Getty Images)
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For the third time this season, the Los Angeles Kings got a bunch of days off, then played like “horse(bleep).”

That was the conclusion their coach, Darryl Sutter, reached after last night’s 3-1 loss to Carolina at Staples Center. The Kings hadn’t played since Sunday, and Sutter didn’t think his players used their time off too wisely.

The transcript of Sutter’s post-game press conference, via L.A. Kings Insider:

… it’s disappointing because it’s the third time this year we’ve had three days between games, and that first game after the three days we’ve been, for lack of a better word, [road apples]. Go back to Philly-Minnesota, San Jose the last time they played in here, and this one here. Our top guys were not very efficient out there maximizing what their God gave ‘em. [Reporter: Is that because they’re taking things for granted, you think?] No, I don’t think that’s the right word. I think the word would be ‘using the time properly to prepare to be a great competitor.’

The Kings’ record fell to 13-11-2 with the loss. They’re currently fifth in the Pacific Division, though at least they have games in hand on the leaders from Alberta:

standings

Of course, nobody has to tell Kings fans that the postseason is no guarantee. Los Angeles won the Stanley Cup in 2014, then missed the playoffs in 2015.

This season, if the Oilers are for real and the Flames can maintain their recent momentum, it’s going to be a real dogfight for the top three spots in the division. Even the Canucks, who’ve earned points in nine of their last 14, aren’t out of it yet.

The Kings’ next game is tomorrow at home to Ottawa.

No hearing for Price after punching Palmieri with blocker

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Montreal netminder Carey Price won’t be subjected to supplemental discipline after unloading on Devils forward Kyle Palmieri, an NHL spokesman has confirmed.

The incident in question occurred with 18 seconds left in the first period of Montreal’s 5-2 win on Thursday. Price, visibly upset following Palmieri’s net drive, repeatedly punched the New Jersey forward in the midsection with his blocker.

Price received a pair of roughing minors on the play but, as several people pointed out, he could’ve been slapped with a match penalty, based on rule 51.3:

Match Penalty – If, in the judgment of the Referee, a goalkeeper uses his blocking glove to punch an opponent in the head or face in an attempt to or to deliberately injure an opponent, a match penalty must be assessed.

Price didn’t appear to strike Palmieri in the head or face, and the “deliberately injure” part is pretty subjective. Which is why some thought this could rise to the level of a disciplinary hearing.

The Habs ‘tender said he had no regrets about going after Palmieri.

“I got run on the first goal and I wasn’t going to take another one,” Price said, per the Montreal Gazette. “I got fired up, I guess. I’m going to stick up for myself now.

“It seems to be the nature of the league, to go hard to the net, run the goalie and score the goal. You have to stick up for yourself once in a while.”

For the second time this season, Stars activate Hudler off IR

OTTAWA, ON - OCTOBER 28: Jiri Hudler #24 of the Calgary Flames looks on during an NHL game against the Ottawa Senators at Canadian Tire Centre on October 28, 2015 in Ottawa, Ontario, Canada. (Photo by Jana Chytilova/Freestyle Photography/Getty Images)
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The Dallas Stars have activated winger Jiri Hudler off injured reserve.

Again.

Hudler has only played four games this season. He was in the lineup for the Stars’ first two games, then missed five with an undisclosed illness. He returned to play twice more, on Oct. 29 and Nov. 1, but has been out ever since due to the same illness.

“I think now it’s just all about conditioning,” Stars coach Lindy Ruff said earlier this week, per the Dallas Morning News. “He’s missed a tremendous amount of time, but he’s got a good week ahead of him here. I don’t know where he’ll be by the end of the week, but I think we can get him five real good days and we’ll see by the weekend where he’s at.”

The Stars play in Philadelphia tomorrow afternoon, then travel to Chicago for a game Sunday evening.

Hudler, 32, is with Dallas on a one-year, $2 million contract. He has yet to register his first point with the Stars.

To make room on the roster, Jason Dickinson was returned to the AHL.