Goldwater's concession rejected

Potential Phoenix Coyotes owner Matthew Hulsizer has agreed to a major concession, which he hopes...

Potential Phoenix Coyotes owner Matthew Hulsizer has agreed to a major concession, which he hopes will allow him to complete his purchase of the team and keep the franchise in Arizona. (CHRISTIAN PETERSEN/Getty Images)

QMI Agency

, Last Updated: 9:09 PM ET

Matthew Hulsizer's major financial concession was not enough to get the Goldwater Institute to back down in the standoff over the Phoenix Coyotes.

The Arizona taxpayer watchdog issued a statement late Monday, saying Hulsizer's offer to guarantee a return of $75 million to the City of Glendale on its $100 million purchase of parking rights at Jobing.com Arena is a positive development but falls short of appeasing its primary concerns.

"The proposal fails to remedy the core legal violation at issue, leaving the expensive taxpayer gamble intact," Goldwater president Darcy Olsen said. “We hope Glendale will put a deal on the table that doesn’t expose taxpayers to unnecessary risk,”

Goldwater has promised to sue the City of Glendale if its deal to hand over $100 million to Hulsizer — who would then use the money to purchase the Coyotes from the NHL for $170 million — goes through.

Just the threat of a lawsuit has prevented Glendale from selling municipal bonds to raise the $100 million and Hulsizer's offer was an attempt to get Goldwater to take down that blockade.

Hulsizer's company proposed the concession in a letter he sent to the Goldwater Institute on Friday.

“Arizona Hockey is willing to modify the lease agreement with Glendale to guaranty [sic] to the city that they [sic] will receive direct revenues from the Coyotes, Arena and parking that have a value to day [sic] of at least $75 million," Hulsizer wrote. "If the cumulative direct revenues received from the Coyotes, Arena and parking are that amount, than [sic] the shortfall will be the liability of Arizona Hockey Holdings."

If the deal to transfer ownership from the NHL to Hulsizer can't be completed soon, the Coyotes could be sold a group which would move the team out of Phoenix. Winnipeg's True North Sports and Entertainment is believed to be at the top of the list and they could purchase the team and move it to Winnipeg in time for next season.


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