PHOENIX - The Goldwater Institute is still planning to legally challenge the proposed sale of the Phoenix Coyotes to Matthew Hulsizer despite the Chicago businessman's willingness to change the terms of the deal.
In a statement Monday, the institute said Hulsizer's changes to the deal are a step in the right direction, but the terms of the sale are still unconstitutional under Arizona law and a risk to taxpayers.
On Sunday, Hulsizer said he will guarantee US$75 million of the $100 million in bonds that the City of Glendale has agreed to sell to help fund the purchase of the team, currently owned by the NHL. He said the other $25 million was going to be paid in cash to the city.
The Goldwater Institute said the revised deal still violates the Arizona state constitution regarding public financing of private transactions.
"The offer recognizes the significant risk to taxpayers under the current deal and to that extent is a positive development," Goldwater Institute president Darcy Olsen said in the statement. "Regrettably, however, the proposal fails to remedy the core legal violation at issue, leaving the expensive taxpayer gamble intact."
Goldwater says it will file a lawsuit if the bonds go on sale.