Winnipeg Free Press - ONLINE EDITION

Goldwater reiterates objection over Hulsizer, Glendale financing of Coyotes

  • Print

The Goldwater Institute continues to fight against the sale agreement constructed by the City of Glendale and potential Phoenix Coyotes purchaser Matthew Hulsizer.

Goldwater litigator Clint Bolick released the following statement today:

Goldwater Institute Daily Email

March 15, 2011

The City of Glendale, Ariz. is planning to borrow $100 million so it can send a check for that amount to Chicago businessman Matthew Hulsizer to help him buy the Phoenix Coyotes. That type of transaction is exactly what the Gift Clause of the Arizona Constitution was designed to prevent: furnishing public debt or providing public funds to a private individual or corporation for personal gain.

The deal has the team selling parking rights to the City, which the dealmakers say will provide sufficient revenues to repay the bonds. But there are two problems with that. First, the City may already own some or all of the parking rights. Second, it's quite clear the revenues will not come close to repaying the bonds.

So the City pledged sales and excise taxes as collateral for the loan. That means if the team goes bankrupt again, or if parking revenues fall short, taxpayers are on the hook for potentially hundreds of millions of dollars--on top of the $180 million the City borrowed to build the hockey arena in the first place.

The solution is simple: take the taxpayers off the hook, and place responsibility where it belongs: with the new owner.

The City and Hulsizer share two dubious beliefs. First, although the Coyotes have lost $25-$40 million every year and already have plunged into bankruptcy, they think Hulsizer can make the team profitable with "a few tweaks". Second, they say parking revenues will suffice to repay the bonds.

If they truly believe those things, then there should be no problem with Hulsizer, rather than the taxpayers, borrowing the money. That way, if the shaky premises on which the deal depends prove faulty, Glendale taxpayers will not have to pay for another costly blunder by the City of Glendale.

If the City truly wants to keep the Coyotes, it should act within the law and stop playing Russian roulette with taxpayer money. If Hulsizer is willing to skate up to the puck, the Coyotes' endearing mascot Howler need not be an endangered species.

Clint Bolick is director of the Goldwater Institute's Scharf-Norton Center for Constitutional Litigation.

History

Updated on Tuesday, March 15, 2011 at 12:16 PM CDT: Corrects typo.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Winnipeg Cheapskate: Travel getaway tips

View more like this

Photo Store Gallery

  • A Canada goose protects her nest full of eggs Monday on campus at the University of Manitoba- Standup photo- Apr 30, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • JOE.BRYKSA@FREEPRESS.MB.CA Local-(  Standup photo)-    A butterfly looks for nector on a lily Tuesday afternoon in Wolseley-JOE BRYKSA/WINNIPEG FREE PRESS- June 22, 2010

View More Gallery Photos

Poll

Should the federal government force band chiefs and councillors to disclose their salary information?

View Results

View Related Story

Ads by Google